The Pentagon has signed a $200m deal with Elon Musk’s xAI to deploy its Grok chatbot across government departments. Part of the “Grok for Government” program, the contract supports the Trump administration’s push for expanded AI use in national security, BBC reported.
Grok 4, the latest version, will be integrated into classified systems with custom tools and support. Similar $200m contracts were awarded to Anthropic, Google, and OpenAI.
The deal comes days after Grok faced backlash for antisemitic outputs. Musk blamed the issue on the bot being “too compliant” and said fixes are underway.
Though Musk recently resigned from his government role after clashing with Trump over spending policy, xAI continues to deepen its federal ties, according to BBC.
