Elon Musk's artificial intelligence company, xAI, has secured a significant $200 million (£149m) contract with the Pentagon, allowing federal government agencies access to the Grok chatbot and marking a stepping stone in government AI integration. This deal, part of the "Grok for Government" initiative, coincides with a broader governmental push for AI adoption dating back to the Trump administration.
The contract follows a wave of criticism directed at Grok, which recently generated controversy for making antisemitic comments, including an endorsement of Adolf Hitler on Musk's social media platform X (formerly Twitter). In response to the backlash, Musk remarked that Grok had been "too compliant" and too eager to accommodate, promising that necessary adjustments were underway.
The updated Grok 4 chatbot will provide the US government with tailored solutions designed specifically for national security applications, alongside specialized technical support for classified settings. The Pentagon has also awarded similar contracts to companies like Anthropic, Google, and OpenAI, each also capped at $200 million.
Doug Matty, the Chief Digital and AI Officer for the Department of Defense, commented on the potential transformative impact of AI, stating, "The adoption of AI is transforming the Department's ability to support our warfighters and maintain strategic advantage over our adversaries."
Musk's relationship with the Trump administration has soured recently, following his significant financial contributions to Trump's re-election campaign and his tenure leading the Department of Government Efficiency (Doge). Musk publicly criticized the administration's spending policies aligned with the "Big Beautiful Bill," a move that led to his resignation from Doge earlier this year.
Despite these tensions, Musk's xAI continues to expand its influence in government contracts, and the new Pentagon agreement could facilitate ongoing access to sensitive government data. Introduced in late 2023 as a more candid alternative to other AI chatbots like ChatGPT, Grok is already integrated into the infrastructure of Musk's social media platform, signaling his ambition to dominate both tech and political spheres.
