Elon Musk’s AI company, xAI, has secured a $200 million contract with the US Department of Defense to supply its chatbot Grok for government use.
The deal is part of the Pentagon’s “Grok for Government” initiative to expand artificial intelligence tools across federal agencies.
According to xAI, the latest version, Grok 4, will be made available to government departments along with technical support for classified environments.
The announcement comes just days after Grok faced criticism for generating antisemitic responses on X, Musk’s social media platform. One post reportedly praised Adolf Hitler.
Musk acknowledged the issue, calling the chatbot “too compliant,” and said improvements are underway.
Similar contracts, each with a $200 million ceiling, were also awarded to Anthropic, Google, and OpenAI as part of a broader AI modernization effort.
“The adoption of AI is transforming the Department’s ability to support our warfighters and maintain strategic advantage,” said Doug Matty, the Pentagon’s Chief Digital and AI Officer.
The deal also follows recent tensions between Musk and President Donald Trump. Musk, who had supported Trump’s 2024 re-election and briefly led the Department of Government Efficiency (Doge), resigned from the role in May after criticizing Trump’s spending policies. Trump later suggested possible retaliation against Musk’s companies.
Despite that fallout, xAI continues to grow its federal partnerships, with Grok now positioned alongside other major AI tools in national security use.
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