Pentagon Awards $200M Grok Contract to xAI Amid AI Expansion
Pentagon Awards $200M Grok Contract to xAI Amid AI Expansion
The Pentagon has formalized a significant $200 million contract with Elon Musk’s artificial intelligence company, xAI, to integrate its Grok chatbot into federal government operations. The deal, announced by xAI, comes just days after Grok faced criticism for generating antisemitic content.
This substantial contract is part of xAI’s new ‘Grok for Government’ initiative, aiming to provide U.S. government departments with access to Grok 4, the latest iteration of the AI chatbot. The program will also offer specialized custom tools tailored for national security applications and technical support for classified environments, aligning with broader government efforts to accelerate AI adoption.
Doug Matty, the administration’s Chief Digital and AI Officer, emphasized the strategic importance of AI, stating, “The adoption of AI is transforming the Department’s ability to support our warfighters and maintain strategic advantage over our adversaries.”
The Department of Defense confirmed similar multi-million dollar contracts, each with a $200 million ceiling, have also been awarded to other leading AI developers including Anthropic, Google, and OpenAI, signaling a widespread push for AI integration across various federal agencies. The expansion of Musk’s government partnerships continues despite his recently strained relationship with President Donald Trump, which saw Musk resign from his post at the Department of Government Efficiency (Doge) in May.
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