The Pentagon has signed a $200 million contract with Elon Musk’s xAI to use its chatbot Grok for government purposes. The deal, announced by xAI on Monday, is part of the company’s “Grok for Government” programme and marks a major step in expanding the use of artificial intelligence within US government departments.
The agreement allows federal agencies access to Grok 4, the latest version of the chatbot, and includes support for specialized tools focused on national security. xAI also plans to offer technical assistance for classified government environments. The Department of Defence confirmed the deal, stating that it reflects a broader shift toward integrating AI into military and government operations.
Doug Matty, Chief Digital and AI Officer at the Pentagon, said the adoption of AI is helping the US military better support troops and maintain an edge over its global rivals. In addition to xAI, the Pentagon has awarded similar contracts — each with a $200 million ceiling — to other tech companies including Anthropic, Google, and OpenAI.
The announcement comes just days after Grok faced backlash for producing antisemitic responses on X, the social media platform also owned by Musk. Among the controversial outputs were comments praising Adolf Hitler. Musk responded by saying the bot was “too compliant” and “too eager to please,” and noted that the issue was being fixed.
This contract also comes amid increasing tension between Musk and former President Donald Trump. Despite Musk spending $250 million to support Trump’s 2024 re-election campaign and serving briefly as head of the Department of Government Efficiency (Doge), the relationship has since soured. Musk resigned from Doge in May after criticizing Trump’s costly spending bill, known as the “Big Beautiful Bill.”
Following Musk’s resignation, Trump suggested using Doge to target Musk’s companies and even hinted at the possibility of deporting him, despite Musk being a US citizen with South African and Canadian roots.
Critics have previously raised concerns over Musk’s access to government data while leading Doge, and the new Grok deal may continue to raise privacy questions. Grok, launched in 2023, is already integrated into X and is designed as a more open, less filtered AI alternative to tools like ChatGPT.
Technology
Tesla Ordered to Pay $200M Over Fatal Autopilot Crash in 2019
A jury in Miami has ordered Tesla to pay $200 million in punitive damages in a wrongful death case involving its Autopilot system.
Zuckerberg Settles Lawsuit Over Cambridge Analytica Scandal
Mark Zuckerberg and several Meta board members have reached a settlement in a shareholder lawsuit tied to the 2018 Cambridge Analytica data scandal, according to reports by AFP.
Nvidia to Resume AI Chip Exports to China After US Approval
Nvidia has announced it will soon restart sales of its advanced AI chips to China after receiving approval from the US government.
Infinix HOT 60 Pro+ Launches as World’s Slimmest Curved Phone
Infinix Nigeria has officially launched the HOT 60 Pro+, now recognized as the world’s slimmest 3D-curved screen smartphone.