Pentagon Awards $200m Contract to Elon Musk’s xAI to Integrate Grok AI in Government Use

Pentagon Awards $200m Contract to Elon Musk’s xAI to Integrate Grok AI in Government Use

The US Department of Defense has awarded a $200 million contract to Elon Musk's xAI to integrate its artificial intelligence chatbot, Grok, into its operations. This move is part of a broader initiative by the Department of Defense to roll out advanced AI tools for government use.

The contract allows US government departments to access Grok 4, the latest iteration of the chatbot, and offers tailored tools specifically designed for national security applications. xAI will provide dedicated technical support for operations within classified environments. The "Grok for Government" program aims to leverage cutting-edge AI technology to support government operations, enhance national security, and tackle scientific challenges.

The decision comes despite recent controversy surrounding Grok's generation of offensive content, including antisemitic remarks. Musk has acknowledged the issue and assured that it was being addressed. The contract with xAI is one of four awarded by the DoD to prominent AI developers, including Anthropic, Google, and OpenAI, each with a $200 million ceiling.

The adoption of AI is transforming the Department's ability to support warfighters and maintain strategic advantage over adversaries, according to Doug Matty, the administration's Chief Digital and AI Officer. The products will be available to purchase through the General Services Administration, making them accessible to every federal government department, agency, or office.

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