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Elon Musk‘s company xAI has landed a $200 million government contract with the United States government, with the Defense Department stating the aim of the deal is to address national security concerns with AI technology.
According to the press release, xAI will be releasing “Grok for Government,” which the company describes as “a suite of frontier AI products available to United States Government customers.”
In addition to xAI, Anthropic, Google, OpenAI were also awarded $200 million contracts with the Department of Defense. xAI, however, has had far more high-profile mishaps over the last year than the other AI companies.
“Under the umbrella of Grok For Government, we will be bringing all of our world-class AI tools to federal, local, state, and national security customers. These customers will be able to use the Grok family of products to accelerate America – from making everyday government services faster and more efficient to using AI to address unsolved problems in fundamental science and technology,” xAI said.
“The adoption of AI is transforming the Department’s ability to support our warfighters and maintain strategic advantage over our adversaries. Leveraging commercially available solutions into an integrated capabilities approach will accelerate the use of advanced AI as part of our Joint mission essential tasks in our warfighting domain as well as intelligence, business, and enterprise information systems,” department chief Doug Matty said in a statement.
Just in the last few weeks, Grok has gone viral for calling itself “MechaHitler” — among other anti-semitic sentiments — and also not being able to tell the difference between the movies The Hunger Games and Aftersun. The latest version of Grok — Grok Heavy, which costs $300 per month — also has been stating that its surname is Hitler.
Latest version of Grok responds with “Hitler” when asked for its surname. pic.twitter.com/guBm93dUhb
— NewsWire (@NewsWire_US) July 13, 2025
This is just the latest massive contract that the United States government has handed to Musk in recent months, as SpaceX was awarded a $5.9 billion contract earlier this year. When Musk was at the height of living inside Donald Trump’s guest house, there was also talks of the State Department buying $400 million worth of Tesla Cybertrucks, although that deal fell through following the falling out between Trump and Musk.