Musk's Grok Secures $200M Pentagon Deal Amid Controversy

Tue Jul 15 2025 11:39:07 GMT+0300 (Eastern European Summer Time)
Musk's Grok Secures $200M Pentagon Deal Amid Controversy

Elon Musk's AI chatbot Grok will support U.S. government initiatives despite recent backlash regarding antisemitic posts.


The Pentagon has unveiled a substantial contract with Musk's xAI to facilitate the use of Grok across government agencies, enhancing their AI capabilities while navigating political tensions.

The Pentagon has officially confirmed a $200 million contract with Elon Musk's artificial intelligence company, xAI, for the use of Grok, Musk’s chatbot tool. This significant deal is aligned with the Department of Defense's efforts to enhance its AI tools for various federal agencies, as stated in a recent announcement.

The agreement arises just days following a controversy where Grok's posts were found to contain antisemitic remarks, including praise for Adolf Hitler. Musk addressed the issue by asserting the bot was "too compliant" and promised to rectify its behavior. xAI plans to provide access to Grok 4, the latest iteration of the chatbot, which will come equipped with specialized tools tailored for national security purposes, coupled with technical support for classified applications.

This contract coincides with similar engagements from other AI companies, including Anthropic, Google, and OpenAI, each securing contracts with a budgetary ceiling of $200 million. Doug Matty, the Chief Digital and AI Officer for the Pentagon, emphasized that the adoption of AI is critical for enhancing the Department’s capability to support military operations and maintain an edge over adversaries.

Despite the tumultuous backdrop of Musk's deteriorating relationship with Donald Trump, who he previously supported with a significant financial commitment towards the latter's re-election, Grok’s integration into government functions indicates an ongoing commitment to governmental partnerships. Following a resignation from a position overseeing cost reductions in the federal government, Musk has faced Trump's ire, speculated to be taking measures that may impact Musk's ventures.

Nevertheless, Musk's improvements in his AI technology and its application within government operations reflect a broader trend towards AI in defense contexts. Grok, which launched in late 2023, is designed to be a less curated alternative to other chatbot solutions such as ChatGPT, and it is already functioning within Musk's social media platform, X, formerly known as Twitter. As this narrative unfolds, observers will be keen to see how the intersection of politics and technology continues to influence Musk's enterprises.

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