(José Niño, Headline USA) The Pentagon has finalized a $200 million contract with xAI, granting Elon Musk’s Grok chatbot a key role in the government’s sweeping artificial intelligence expansion.
Under this agreement, Grok and related xAI technologies, including the latest Grok 4 model, will be accessible for purchase via the General Services Administration (GSA).
In effect, this would open the door for federal agencies, local governments, and national security sectors to use this technology, according to a report by Defense Forces.
As part of the “Grok for Government” program, the suite brings specialized AI tools designed for applications in defense, science, and healthcare, with models built specifically for deployment in classified environments.
The move takes place despite recent controversies, namely incidents in which Grok produced antisemitic content and references to Hitler—issues that xAI states were “promptly fixed.”
Despite these hiccups, the company maintains its forward momentum in expanding government partnerships.
Musk directly addressed the incidents, noting that Grok had previously been “too compliant” with user instructions but that new improvements have been released. Launched in late 2023, Grok set out to be a more “unfiltered” alternative to established chatbots like ChatGPT and is already integrated with Musk’s X platform (formerly Twitter), with future plans for deployment in Tesla vehicles.
Exactly. Grok was too compliant to user prompts. Too eager to please and be manipulated, essentially. That is being addressed.
— Elon Musk (@elonmusk) July 9, 2025
Musk previously served briefly in the Trump administration as head of the Department of Government Efficiency (DOGE) until his resignation in May, but he remains a powerful player in the AI industry.
In Monday’s announcement of the Pentagon contract, xAI stated, “America is the world leader in AI,” adding that “we’re excited to contribute back to the country that made xAI uniquely possible here.”
José Niño is the deputy editor of Headline USA. Follow him at x.com/JoseAlNino
