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Musk's xAI announces $200 million contract with Pentagon

Musk's xAI announces $200 million contract with Pentagon

Axios14-07-2025
Elon Musk's xAI announced Monday it secured a $200 million ceiling contract with the U.S. Department of Defense.
The big picture: The move is a part of the Pentagon's adoption of advanced artificial intelligence capabilities to address national security challenges.
As part of that goal, the Chief Digital and Artificial Intelligence Office, which sets AI standards for the Defense Department, also announced awards Monday to Anthropic, Google and OpenAI.
Driving the news: xAI said Monday that it secured the new contract with the Defense Department alongside its products being available to purchase.
"This allows every federal government department, agency, or office, to access xAI's frontier AI products," the company said.
Zoom in: Its flagship AI model, Grok, also launched a suite of products available to the U.S. government.
"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," the company said.
"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."
What they're saying: Douglas Matty, chief digital and AI officer at the Defense Department, said in a statement that the adoption of AI is "transforming the Department's ability to support our warfighters and maintain strategic advantage over our adversaries."
He added, "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."
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