OpenAI Partners with MS-ISAC to Defend Local Governments

OpenAI is teaming up with the Multi-State Information Sharing and Analysis Center to pilot AI-driven cybersecurity defenses for state and local governments and critical infrastructure operators that typically lack the resources of larger organizations.

The partnership will provide access to Daybreak, OpenAI's cybersecurity-focused AI platform, along with training and hands-on support for public agencies and essential service providers. According to details first reported by Government Technology, the initiative targets organizations defending complex and aging systems without adequate budgets or specialized expertise.

Why it matters

Small government agencies and utilities face the same sophisticated cyber threats as major corporations but often operate with skeleton IT teams of one or two people. As AI-enhanced cybercrime accelerates, this resource gap leaves essential services — from water treatment to local emergency systems — increasingly vulnerable. Democratizing access to advanced defensive AI could help level a playing field that has tilted sharply toward attackers.

A $1 billion commitment to frontline defenders

OpenAI announced it will commit $1 billion globally in subsidized Daybreak access for what it calls "frontline defenders" — organizations on the front lines of critical service delivery but constrained by limited resources. The U.S. rollout prioritizes water and wastewater systems, electric grid operators, state and local governments, community and regional banks, nonprofit organizations, and open-source maintainers.

Daybreak, which launched earlier this year, enables verified cybersecurity professionals in the public and private sectors to use advanced AI models for authorized cyber defense work. The platform currently serves 2,000 approved organizations and workspaces, including law enforcement and defense entities.

Responding to escalating threats

The timing reflects urgent need. In July alone, water and wastewater facilities in at least seven states experienced more than 100 cybersecurity incidents involving Internet-connected programmable logic controllers, according to the FBI and Environmental Protection Agency. Attackers remotely altered device IP addresses and passwords, temporarily disrupting monitoring or control functions at some facilities.

OpenAI offered affected states and utilities $1 million in no-cost API credits, Daybreak access, and technical assistance. The company has held meetings with utility representatives, including one this week with attendees from 40 states and the District of Columbia — a group collectively serving more than half the U.S. population.

How the pilot will work

MS-ISAC supports cybersecurity operations for state, local, tribal, and territorial governments across the United States and its territories. Many of these entities rely on small IT shops or managed service providers for support.

The pilot aims to help cybersecurity professionals with varying experience levels use AI to identify security problems, prioritize what needs attention, and determine how to apply fixes. The Center for Internet Security, which operates MS-ISAC, said the program will help users understand how AI can enable smarter decisions, faster threat response, and better focus on critical risks.

"The services Americans rely on every day are increasingly in the crosshairs of cyber threats," said Brian Calkin, chief technology and innovation officer at the Center for Internet Security. "At a time when defenders at the state and local government level are challenged by a growing threat landscape, AI has the potential to be a game changer."

The Center for Internet Security has been developing AI resources, research, and best practices covering secure AI adoption, governance, and emerging threats. This pilot represents part of its broader commitment to helping government organizations navigate AI opportunities and challenges.

Government Technology first reported the details of the partnership.