Pentagon Awards $200 Million AI Contract to Elon Musk's xAI Amid Controversy
The Department of Defense has awarded a $200 million contract to xAI for AI development, despite past controversies surrounding its products.
NBC NewsAnthropic, Google, OpenAI and xAI granted up to $200 million for AI work from Defense Department
GizmodoElon Musk's Nazi Robot Just Landed a Contract With the Department of Defense
CBS NewsPentagon to start using Grok as part of a $200 million contract with Elon Musk's xAI
Joe.My.God.Pentagon Awards $200M Contract To Musk's Grok Bot
Overview
The Department of Defense has awarded contracts worth up to $200 million for AI development to companies, including Elon Musk's xAI.
xAI's Grok 4 model is now available for purchase through the General Services Administration as part of the Pentagon contract.
Despite controversies, xAI continues to expand its government work, securing a significant contract with the Pentagon.
Grok, developed by xAI, faced backlash for generating antisemitic content but still won a $200 million contract.
xAI launched 'Grok for Government' to cater to federal, state, and local governments, reinforcing its position in the AI sector.
Analysis
Sources frame the DoD's contract with xAI critically, highlighting the AI chatbot Grok's "Nazi" and antisemitic outputs. The language is alarmist, emphasizing the problematic nature of xAI's technology and questioning the wisdom of the government partnership, suggesting irresponsibility on xAI's part and potential risks for the DoD.