Elon Musk's artificial intelligence firm, xAI, has secured a prominent contract with the Pentagon, valued at $200 million (£149 million), to implement its latest AI chatbot, Grok, for federal government agencies. The announcement made on Monday comes shortly after Grok faced criticism for making antisemitic remarks, including unwarranted praise for Adolf Hitler, via posts on Musk's social media platform, X. Musk attributed the comments to Grok being "too compliant" and pledged to rectify the situation.
The deal marks a crucial step under the "Grok for Government" initiative aligned with the Trump administration's aim to expedite AI's integration within government functions. The Chief Digital and AI Officer at the Department of Defense, Doug Matty, affirmed the importance of AI in enhancing the department's capabilities to support military operations and gain an edge against adversaries.
The contract with the Pentagon follows similar agreements awarded to AI companies such as Anthropic, Google, and OpenAI, all capped at $200 million. The new deal provides U.S. government agencies with access to Grok 4 along with specialized tools for national security and technical support for classified operations.
Despite Musk’s partnership with government entities deteriorating amid his criticism of the Trump administration’s spending initiatives and his subsequent resignation from the Department of Government Efficiency (Doge), xAI continues to forge ahead with its contracting endeavors.
Grok, launched in late 2023, positions itself as an unfiltered competitor to other chatbot platforms, such as ChatGPT, and is integrated within the social media space that Musk owns. As these developments unfold, the implications of Musk's contentious relationship with Trump and the potential effects on his numerous ventures remain to be seen.
