OpenAI is exploring a potential contract with NATO, according to a source familiar with the matter, as the artificial intelligence company expands its relationships with defense organizations.

The development comes as OpenAI works to implement surveillance safeguards related to its existing partnership with the Pentagon. The company has been focused on establishing appropriate oversight measures for its defense-related work.

OpenAI's Pentagon deal has drawn attention as the company navigates the balance between its AI capabilities and national security applications. The firm has been defending the arrangement while working to address concerns about surveillance and oversight.

The potential NATO contract would represent another significant expansion of OpenAI's presence in the defense sector. NATO, the military alliance of North American and European countries, would join the Pentagon as a major institutional partner for the AI company.

Details about the scope and timeline of the potential NATO agreement have not been disclosed. OpenAI has not officially confirmed the discussions or provided specifics about the proposed partnership.