It’s time for Bits & Bytes…

… where we bring you news, innovations, and thought-provoking insights from AI, IT, and beyond. In this week’s newsletter we’re looking at:

• DoD’s contract with OpenAI shaping the military’s tech future.
• The OpenAI–Microsoft alliance hitting rocky ground over IP and control.
• McKinsey’s sharp take on why AI isn’t paying off.

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IN THE SPOTLIGHT

✨DoD Awards $200M Contract to OpenAI

From upgrading flight decks to quantum breakthroughs, the Department of Defense just announced billions in new contracts touching nearly every branch and emerging frontier. Borsight Inc. secured a $2.18B ceiling deal for T-6A avionics upgrades, while OpenAI landed a $200M prototype agreement to develop next-gen AI for national security.

The Navy is also investing heavily American Electronic Warfare Associates got a $466M contract for advanced aircraft R&D, and Booz Allen is building out global wireless infrastructure for mariners. Across every deal? A clear push toward smarter, faster, and more future-ready forces.

TL;DR

• Borsight awarded $2.18B to overhaul T-6A avionics.
• Navy drops $466M on R&D for aircraft and battlespace systems.

TECH HEADLINES FROM ACROSS THE WEB

💡Gemini 2.5 drops Flash-Lite for faster, simpler tasks

Google just launched a faster, cheaper version of Gemini built for quick tasks at scale. Whether you’re sorting info or need fast summaries, Flash-Lite gets it done without breaking the bank. It’s lightweight, low-latency, and perfect for when speed matters most.

🤝 A Power Duo No More? OpenAI–Microsoft Face-Off Begins

The once unstoppable AI duo might be heading for a breakup. Tensions are flaring over IP rights, compute access, and control so much so that OpenAI is reportedly eyeing antitrust action against its biggest backer, Microsoft.

✨ Create TikToks at light speed with New TikToks New AI

TikTok just leveled up its Symphony suite with new AI tools that let marketers spin images, text, or product shots into scroll-stopping videos fast. From turning photos into stylish clips to dropping avatars that demo your product, this update makes creative production feel like drag-and-drop magic.

📉 McKinsey just diagnosed the AI ROI crisis

McKinsey’s new report says the problem isn’t the tech it’s how companies are using it. Most are layering AI onto old workflows instead of rethinking the system entirely. The real returns? They’ll come when businesses embrace agents and redesign from the ground up.

Interested in contributing a story to next week’s tech newsletter? Hit us up and let’s collab 💥

The post OpenAI secures $200M Pentagon Project appeared first on ChannelBytes.