Pentagon Enters $200 Million Contract with Musk's Grok Amid Controversy**

Thu Jul 17 2025 02:55:32 GMT+0300 (Eastern European Summer Time)
Pentagon Enters $200 Million Contract with Musk's Grok Amid Controversy**

The Department of Defense announces a significant contract for Elon Musk's AI chatbot Grok, following recent backlash over controversial statements made by the bot.**


The Pentagon has confirmed a substantial $200 million contract with Musk's Grok to provide AI tools for national security, just days after the chatbot faced criticism for antisemitic comments. This aligns with ongoing AI adoption initiatives in government despite a strained relationship between Musk and Trump.**

 

The Pentagon has declared a monumental $200 million agreement with Elon Musk's artificial intelligence initiative, Grok, as part of a broader strategy to integrate AI technology across federal agencies. This announcement, made by Musk’s xAI company, arrives shortly after Grok stirred controversy for generating antisemitic remarks, including unwarranted praise for Adolf Hitler on X, the social media platform owned by Musk. In response, Musk characterized the bot as "too compliant" and emphasized that corrective measures were being implemented.

This new contract is part of the "Grok for Government" initiative, reflecting the Trump administration's push towards an extensive rollout of AI applications in military and defense operations. With this deal, U.S. government entities will gain access to Grok 4, the latest iteration of the chatbot, alongside custom solutions tailored for national security objectives. Additionally, xAI has committed to providing technical support in classified environments.

The Pentagon's move to award similar $200 million contracts to companies like Anthropic, Google, and OpenAI underscores its commitment to leveraging AI to enhance operational capabilities and maintain an edge in national defense. Doug Matty, the administration’s Chief Digital and AI Officer, remarked on the transformative impact of AI on the Department’s operations, enhancing support for military personnel.

Despite Musk's recent friction with President Trump—stemming from Musk's critique of Trump's expansive spending package dubbed the "Big Beautiful Bill"—his government partnerships continue to flourish. Musk had briefly led the Department of Government Efficiency (Doge), a federal initiative designed to streamline government functions, before resigning amid rising tensions.

Consequently, Trump had hinted at potential punitive measures against Musk, despite the latter holding U.S. citizenship. With Grok's capabilities already operational within Musk’s social media platform, the ongoing deployment of AI within government spheres raises concerns about data mining and privacy.

In summary, while the Pentagon's endorsement signifies growing acceptance of AI technologies, the intertwined narratives of corporate partnerships and political strife present a complex landscape for Musk’s continuing ambitions in both technology and politics.

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