Pentagon signs $200 million deal with Elon Musk’s xAI to use Grok in US govt operations

In US, the Pentagon has signed a 200 million US dollar deal with Elon Musk’s AI company, xAI, to use its chatbot, Grok, as part of a broader plan to bring AI into US government operations.

The contract is part of xAI’s Grok for Government program and will give federal agencies access to the latest version, Grok 4, with tools tailored for national security and classified



environments.

The Department of Defence also awarded similar 200 million US Dollars contracts to other AI companies, Anthropic, Google, and OpenAI, as part of its effort to modernise military capabilities with artificial intelligence.

Launched in 2023, Grok is known for being a more unfiltered alternative to other chatbots and is integrated into X, formerly Twitter.