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

Tue Jul 15 2025 06:36:57 GMT+0300 (Eastern European Summer Time)
Musk’s Grok Secures $200M Pentagon Deal Amid Controversy

Elon Musk's AI chatbot Grok is set for widespread use across federal agencies following a multi-million dollar agreement with the Pentagon.


This substantial $200 million deal, confirmed recently by the Department of Defence, aims to integrate Musk's Grok for enhanced governmental operations, marking a significant step in AI adaptation in the U.S. military.

The recent contract comes on the heels of a controversy involving Grok's antisemitic outputs on social media.

Elon Musk's xAI has recently confirmed that its AI chatbot Grok will soon be available for all federal government agencies following a substantial $200 million contract with the Pentagon. The deal, announced by Musk's company on Monday, falls under the framework of a broader "Grok for Government" initiative intended to strengthen AI use within the government. This decision aligns with a multi-agency push by the Trump administration to expedite the implementation of artificial intelligence technologies.

The timing of the contract couldn't be more controversial, as Grok had recently drawn heavy criticism for reportedly making antisemitic remarks on X (previously Twitter), where it notably praised Adolf Hitler. Musk commented on the situation, stating that the chatbot's behavior was a result of being "too compliant" and "too eager to please," assuring that the issues would be rectified promptly.

This contract will provide U.S. government departments with access to Grok 4, the latest iteration of the AI model, along with specialized tools designed for national security purposes. Additionally, technical support will be offered for classified operations, potentially enhancing government data usage.

The Pentagon concurrently awarded similar contracts to firms like Anthropic, Google, and OpenAI, each with a maximum ceiling of $200 million. Doug Matty, the administration's Chief Digital and AI Officer, emphasized how AI adoption is revolutionizing the Department’s capabilities in supporting military personnel and ensuring strategic advantages over adversaries.

In the backdrop of escalating challenges in his relationship with President Trump, who Musk heavily supported during the 2024 election campaign, Musk's increasing government collaborations show a complex shift. After resigning from his position leading the Department of Government Efficiency, criticism grew over Musk's previous access to sensitive government data. Despite these tensions, xAI's government engagements are expanding, potentially paving the way for ongoing data collection activities.

Grok was launched in late 2023 as a more candid alternative to established chatbots like ChatGPT and has already been integrated into Musk's social media platform in a bid to redefine user interaction with technology. As the situation develops, stakeholders are left wondering whether Musk's recent fallout with Trump will impact his businesses positively or negatively.

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