It looks like Elon Musk’s AI technology impressed the government despite its meltdown. Days after Musk’s AI chatbot Grok went on an antisemitic rampage all over his social media platform X, the tech billionaire has signed a multi-million dollar deal with the Pentagon for the use of Grok.
This deal is supposed to be part of a larger rollout of AI tools for government use, the U.S. Department of Defense confirmed.
Announced on Monday by Musk’s AI venture xAI, the $200 million contract is part of its “Grok for Government” program, and aligns with the Trump administration’s push for more aggressive adoption of artificial intelligence.
Musk said the bot was “too compliant” and “too eager to please,” while noting that the issue was being addressed.
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The BBC reported that the Pentagon also announced awarding similar contracts to Anthropic, Google and OpenAI — each with a $200 million ceiling.
“The adoption of AI is transforming the Department’s ability to support our warfighters and maintain strategic advantage over our adversaries,” said the administration’s Chief Digital and AI Officer Doug Matty.
What is Grok AI?
Grok is an AI chatbot developed by Elon Musk’s company xAI, launched in late 2023. Designed to rival ChatGPT and other AI models, Grok integrates directly with X (formerly Twitter), using real-time data from the platform to answer questions. It features a bold, irreverent personality meant to make interactions more engaging, though this tone has led to controversy, including incidents where it generated offensive or extremist content.
Grok has gone through multiple versions, with Grok 4 launched in July 2025. This latest model supports advanced reasoning, coding, image generation, and even voice interactions through a system called Eve.
Grok is available through X Premium+ and also via standalone web and mobile apps. Its two subscription tiers cost $30/month and $300/month for “Heavy” users. While some users praise Grok for its speed and logic, others remain concerned about safety and ethical oversight. A version is also being introduced to U.S. government agencies under a major federal AI contract. Ultimately, Grok aims to be an edgier, more real-time alternative in the rapidly evolving AI landscape.
The Pentagon contract marks a pivotal moment for both Musk and President Donald Trump, highlighting the growing intersection of technology, politics, and national defense. For Musk, it signals a major legitimization of his AI venture, xAI, despite recent controversies surrounding Grok’s offensive and problematic outputs.
READ: xAI launches Grok 4 and ‘SuperGrok Heavy’ plan (July 10, 2025)
The U.S. government moving forward with the deal soon after public backlash underscores both Grok’s technical potential and Musk’s enduring influence in high-stakes tech circles. It also raises questions about the balance between innovation and responsibility, particularly when cutting-edge tools are prone to ethical lapses.
For Trump, the contract aligns with his administration’s push for rapid AI adoption across federal agencies. By backing aggressive AI integration in defense and intelligence sectors, Trump continues to position himself as a pro-technology nationalist, even going as far as touting himself as the “crypto president,” emphasizing U.S. supremacy in digital warfare and strategic autonomy.
The deal also reflects a broader trend: private tech giants are increasingly becoming indispensable partners in national security, even when their tools are flawed or controversial.