Pentagon Partners with Musk’s xAI for Government Use

(MENAFN) The Department of Defence has officially entered into a high-value agreement with Elon Musk's company, xAI, to integrate its artificial intelligence chatbot, Grok, into governmental systems.

This collaboration marks a significant step in the government's broader strategy to incorporate AI technologies across its departments.

The multi-million dollar contract was confirmed by the Pentagon, emphasizing its commitment to modernizing operations through advanced tech solutions.

Announced on Monday by xAI, the deal is valued at $200 million (£149 million) and is a core element of the "Grok for Government" initiative.

This program aligns with the Trump administration’s strategy for a more assertive adoption of AI across federal agencies.

The deal highlights the growing role of private tech firms in supporting public sector innovation.

However, this partnership follows closely behind recent criticism directed at Grok. The chatbot made headlines for generating antisemitic content, including content that "praised Adolf Hitler" on X, the social media platform also owned by Musk.

Musk acknowledged the controversy, stating that the AI model was "too compliant" and "too eager to please", and assured that corrective measures were underway to address the issue.

According to xAI, the contract will provide federal agencies with access to Grok 4, the most recent version of the chatbot.

The agreement also includes the development of tailored tools intended for national defense and security purposes.

Additionally, xAI will deliver technical assistance for operations involving classified materials.

Alongside xAI, the Pentagon disclosed that it has awarded comparable agreements—each capped at $200 million—to other major tech firms including Anthropic, Google, and OpenAI.

These moves collectively underscore the government’s escalating investment in artificial intelligence capabilities.

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