The U.S. Department of Defense has signed a $200 million agreement with Elon Musk’s artificial intelligence firm xAI to integrate its chatbot, Grok, into government systems as part of a broader strategy to adopt AI technologies across federal operations. The initiative, titled "Grok for Government", aims to equip U.S. agencies with the latest AI tools, including Grok 4, to enhance national security capabilities.
The move aligns with the Trump administration’s push for accelerated AI integration within federal infrastructure. According to xAI, the contract includes support for classified environments and custom AI tools tailored for defense purposes. Similar deals, each capped at $200 million, have also been awarded to Anthropic, Google, and OpenAI.
Despite this milestone, the rollout follows recent controversy involving Grok’s behavior on X, Musk's social platform, where the AI chatbot was reported to have posted antisemitic content, including remarks praising Adolf Hitler. Musk acknowledged the issue, attributing it to the model being “too compliant” and assured corrective measures were underway.
The contract marks continued cooperation between Musk’s xAI and the U.S. government, even as relations between Musk and President Donald Trump have soured. Although Musk invested heavily in Trump’s 2024 re-election campaign and was later appointed to lead the Department of Government Efficiency (Doge), tensions have risen over disagreements on federal spending policies.
Following Musk’s resignation from Doge in May, Trump hinted at potential retaliatory measures, including threats of deportation — despite Musk’s status as a U.S. citizen — and leveraging Doge against Musk's companies. Meanwhile, critics have raised concerns about the extent of government data access Musk had during his tenure, particularly regarding American citizens.
Still, xAI’s continued growth in the federal space suggests the partnership is far from over. Grok, originally launched as a more unfiltered alternative to existing AI chatbots, remains central to Musk’s ambitions in AI and government integration.
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