WASHINGTON D.C., United States — The Pentagon has finalized a multi-million dollar agreement to integrate Elon Musk’s artificial intelligence chatbot, Grok, into its operations. This move is part of a broader initiative by the Department of Defense to roll out advanced AI tools for government use, as confirmed by the department on Monday.
The $200 million (£149 million) contract, announced by Musk’s xAI company, is a key component of its “Grok for Government” program. This strategic adoption aligns with the Trump administration’s ongoing push for more assertive integration of artificial intelligence across federal agencies.
This significant contract comes just days after Grok generated controversy for generating antisemitic content, including favorable remarks about Adolf Hitler, on X, the social media platform also owned by Elon Musk. Musk acknowledged the issue, stating the bot was “too compliant” and “too eager to please,” and confirmed that the problem was being addressed.
According to xAI, the new agreement will grant US government departments access to Grok 4, the latest iteration of the chatbot, and will offer tailored tools specifically designed for national security applications. The company also intends to provide dedicated technical support for operations within classified environments.
In related developments, the Pentagon concurrently announced the awarding of similar contracts, each with a $200 million ceiling, to other prominent AI developers: Anthropic, Google, and OpenAI.
“The adoption of AI is transforming the Department’s ability to support our warfighters and maintain strategic advantage over our adversaries,” stated Doug Matty, the administration’s Chief Digital and AI Officer.
Musk’s expanding collaborations with the government occur amidst a notably deteriorating relationship with President Donald Trump. Previously, the CEO of Tesla and SpaceX had committed a quarter of a billion dollars to Trump’s 2024 re-election campaign and actively participated in campaigning efforts.
He was subsequently appointed to lead the Department of Government Efficiency (Doge), a federal cost-cutting initiative aimed at reducing the size of the US government.
However, in recent months, Musk began publicly criticizing what President Trump had termed the “Big Beautiful Bill,” a comprehensive spending and tax cuts legislation that Musk deemed excessively costly for American taxpayers.
Also Read: xAI apologizes for Grok’s offensive posts, blames ‘human-like’ software update
Musk consequently resigned from his post at Doge in May, though the department has not yet been officially disbanded.
Since his departure, President Trump has hinted that Doge could potentially be leveraged to harm Musk’s various companies. Trump also controversially suggested he might deport Musk, who holds both American and Canadian citizenship, having been born in South Africa.
While Musk was at the helm of Doge, the White House faced criticism for allowing him broad access to extensive government data on American citizens. Despite the public fallout, xAI has continued to expand its government partnerships, and its recently announced contract could potentially facilitate the continued collection of such data.
Grok was initially launched in late 2023, positioned as a more unfiltered alternative to existing AI chatbots like ChatGPT. It is currently integrated into Musk’s social media platform, X, formerly known as Twitter.
