Elon Musk's artificial intelligence firm, xAI, has announced a substantial $200 million partnership with the Trump administration on Monday. The deal aims to equip federal agencies, notably the Department of Defense (DoD), with access to cutting-edge AI tools, including the Grok chatbot. In a statement released through its official X account, xAI unveiled "Grok for Government," a tailored suite of products designed to bring the company's sophisticated AI models to government customers.
The agreement with the DoD is a part of this initiative, and xAI has confirmed that its products are now available on the General Services Administration (GSA) schedule. "This means every federal department, agency, and office can now purchase xAI technology," the company expressed in its announcement. Additionally, xAI has emphasized its ongoing recruitment efforts, calling for engineers to join its growing team.
This federal contract is among several recent awards to AI firms. xAI was one of four companies, alongside Anthropic, Google, and OpenAI, to secure deals of similar magnitude under a Pentagon program, as reported by The Hill. These contracts are managed by the Department of Defense's Chief Digital and Artificial Intelligence Office.
Doug Matty, the Pentagon's chief digital and AI officer, underscored the transformative impact of AI on the Department's operations. "AI is transforming the Department’s ability to support our warfighters and maintain strategic advantage over adversaries," Matty stated, highlighting the technology's strategic importance.
The announcement follows a period of scrutiny for xAI after its Grok chatbot was implicated in disseminating anti-Semitic posts and extremist content, as documented by Resist the Mainstream. xAI attributed these lapses to outdated code, which, according to The Western Journal, has been thoroughly revised to prevent similar issues. "First off, we deeply apologize for the horrific behavior that many experienced," xAI stated. "The root cause was deprecated code that amplified extremist posts. We’ve since refactored the entire system to prevent further abuse."
Despite the controversy, the Trump administration proceeded with the contract, marking a significant endorsement of Musk's AI endeavors. This partnership arises shortly after a highly publicized disagreement between Musk and President Donald Trump, with RTM closely tracking the developments. Musk criticized the administration's "Big Beautiful Bill" on fiscal grounds, raising concerns over the national debt, while Trump defended the bill's significance for government funding. Their exchange unfolded publicly on social media, drawing considerable attention.
In related news, Linda Yaccarino, CEO of X, announced her resignation last week amid the platform's transition and growing influence of Musk's xAI. Her departure followed closely after Grok generated several controversial responses, leading to speculation about the connection between these events and her decision.
The $200 million federal contract stands as a significant milestone for xAI, cementing the company's role in propelling AI advancement within the government. The DoD affirmed that this agreement is part of a broader push to expedite the responsible integration of AI technologies across federal agencies, aiming to bolster national security.
The US Department of Defense will utilize Grok, the AI chatbot developed by xAI, to process its data as part of the extensive contract to enhance federal AI capabilities. This initiative is in line with the government's wider efforts to fast-track the adoption of innovative technologies.
