Musk's xAI Signs $200M Deal with Pentagon

Musk's xAI Signs $200M Deal with Pentagon

The News

Elon Musk's xAI is launching a new government-facing service. Its first client happens to be the largest employer on Earth.

The Department of Defense will pay up to $200 million for "Grok for Government," a new collection of AI products geared toward use by federal, local, and state governments.

xAI said its government-facing products would include models designed specifically for national security purposes and eventually for use in classified environments.

The company also said those products would be available for purchase via the General Services Administration, opening the door for other federal agencies to use them.

Reactions

"The adoption of AI is transforming the Department's ability to support our warfighters and maintain strategic advantage over our adversaries," Doug Matty, Chief Digital and AI Officer of the Department of Defense, said in a statement.

More

The department has also awarded similar contracts to Anthropic, Google, and OpenAI, which launched its own government-facing initiative last month.

The announcement comes less than a week after Grok went on an antisemitic rant on X. The company later apologized for the chatbot's "horrific behavior," though workers at the company erupted in anger internally over the incident.

Colleges Condemn Students Mocking Kirk Assassination Anniversary

Charleston White Arrested Again on Florida Battery Charge

Border Patrol Rescues MS NOW Crew in Desert

Supreme Court Restores Missouri's Old House Map

Alaska Drops Felony Voter Charges Against Samoans

Trespasser Breaches Harris' Malibu Estate; No Arrest

Hegseth Pressed Downed Airmen Into 60 Minutes

Houthis Seize Mokha, Choking Saudi Oil Exports

Altman Rules Out OpenAI IPO This Year

Jury Acquits Lil Durk in Murder-for-Hire Case

Judge: Trump Broke Law Halving FEMA Staff

Maher Calls Democrats' Gaza Genocide Claim a Lie

Blizzard Revives StarCraft, Sends Diablo to Netflix

Trump's Queens Childhood Home Sells for $1.93M

Scientists Find New Virus in Tick Invading US

Britain Bans Settlement Imports; US States Threaten Payback

Prison Fire Kills 7 as Kurds Protest Killing

Kosovo Rallies for Ex-President Before Hague Verdict

Cruz Booed at GameDay Over College Sports Bill

Blast Hits Bulgarian Arms Plant Supplying Ukraine