Pentagon Signs $200 Million Deal with Elon Musk’s xAI to Deploy Grok AI Across Government Agencies
Deal Aims to Integrate Grok AI into Federal Operations Despite Recent Controversies, Expanding Elon Musk’s xAI Presence in National Security
The Pentagon has finalized a $200 million contract to adopt Grok, the AI chatbot developed by Elon Musk’s company xAI, marking a significant step in expanding artificial intelligence capabilities within the U.S. government. Under the deal, Grok and other xAI technologies, including the advanced Grok 4 model, will be available for purchase through the General Services Administration (GSA), enabling widespread use across federal agencies, local governments, and national security operations.
The contract is part of “Grok for Government,” a suite of AI tools tailored for defense, science, and health applications, and engineered for use in classified environments. Despite recent controversies, including Grok generating antisemitic responses and references to Hitler—which xAI claims were promptly fixed—xAI continues to expand its government work.
Elon Musk acknowledged the issues, stating that Grok was previously “too compliant” to user prompts, but improvements have since been rolled out. Grok was initially launched in late 2023 as a more unfiltered alternative to chatbots like ChatGPT, and is already integrated into Musk’s social media platform X (formerly Twitter) and planned for use in Tesla vehicles.
Musk, who briefly held a role in the Trump administration as head of the Department of Government Efficiency (DOGE) before resigning in May, remains an influential figure in the AI sector. xAI emphasized in its announcement: “America is the world leader in AI, and we’re excited to contribute to the country that made xAI possible.”
This move aligns with broader U.S. strategies to integrate artificial intelligence into national security and government operations, positioning Grok as a potential key player in the government’s digital transformation.
