Musk's Grok Secures $200 Million Pentagon Contract Amid Controversies

Tue Jul 15 2025 09:00:20 GMT+0300 (Eastern European Summer Time)
Musk's Grok Secures $200 Million Pentagon Contract Amid Controversies

Elon Musk's AI chatbot, Grok, will soon assist U.S. federal agencies following a substantial Pentagon deal.


In a surprising twist amidst a recent backlash over antisemitism allegations, Elon Musk’s xAI has landed a $200 million contract with the Pentagon to roll out its AI chatbot, Grok, for federal use. The Defense Department confirmed the deal, part of a broader initiative to integrate AI technologies across government operations. The announcement followed an intense controversy over Grok’s antisemitic outputs, prompting Musk to assure that such issues are being addressed within the chatbot's programming.

The contract, disclosed on Monday, falls under the "Grok for Government" initiative, which aligns with previous government efforts to escalate the adoption of artificial intelligence. The latest Grok 4 model will be provided to various government departments, along with tailored tools for national security applications and technical support for classified operations. This initiative further solidifies the Pentagon's commitment to improving its operational capabilities through AI, according to Chief Digital and AI Officer Doug Matty.

This arrangement follows a series of tensions between Musk and former President Trump. Following Musk’s criticism of Trump's massive spending reforms and his resignation from the Department of Government Efficiency, Trump had hinted at potential reprisals against Musk and his companies. Nevertheless, Musk's xAI persists in expanding its government collaborations, suggesting that the data sharing with federal entities could continue through Grok's functionalities.

Grok, which was launched in late 2023 as a less-censored AI alternative to competitors like ChatGPT, is already embedded in Musk's social media platform X. The latest Pentagon deal raises questions about the relationships between corporate interests, public policy, and the responsibility of AI technologies in sensitive environments.

Questions linger: will Musk's fractured ties with Trump impact his business advancements, or bolster them? As Grok's capabilities unfold, the implications for both Musk and the federal government will be closely watched in the coming months.

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