Pentagon awards AI contracts to xAI and others after Grok controversy
Elon Musk’s xAI has secured a $200 million Pentagon contract, raising ethics questions following recent scandals involving its Grok chatbot on social media.
The US Department of Defence has awarded contracts to four major AI firms, including Elon Musk’s xAI, as part of a strategy to boost military AI capabilities.
Each contract is valued at up to $200 million and involves developing advanced AI workflows for critical national security tasks.
Alongside xAI, Anthropic, Google, and OpenAI have also secured contracts. Pentagon officials said the deals aim to integrate commercial AI solutions into intelligence, business, and defence operations instead of relying solely on internal systems.
Chief Digital and AI Officer Doug Matty states that these technologies will help maintain the US’s strategic edge over rivals.
The decision comes as Musk’s AI company faces controversy after its Grok chatbot was reported to have published offensive content on social media. Critics, including Democratic lawmakers, have raised ethical concerns about awarding national security contracts to a company under public scrutiny.
xAI insists its Grok for Movement platform will help speed up government services and scientific innovation.
Despite political tensions and Musk’s past financial support for Donald Trump’s campaign, the Pentagon has formalised its relationship with xAI and other AI leaders instead of excluding them due to reputational risks.
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