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US defense department awards contracts to Google, Musk's xAI

UNITED STATES, JUL 14 – The Pentagon’s $200 million contract with xAI supports the Trump administration’s national security AI push and enables federal agencies to access Grok through the General Services Administration.

  • The Pentagon's Chief Digital & AI Office announced $600 million in contracts to Anthropic, Google, and xAI, following a previous contract to OpenAI, in order to leverage commercial AI technologies for military use.
  • Each company will receive contracts with a ceiling of $200 million to develop agentic AI workflows for the U.S. Department of Defense.
  • CDAO stated that the contracts, aimed at developing agentic AI workflows, will help address critical national security challenges.
  • This investment represents a shift towards commercial technology, inspired by prior calls from Congress to expand the military's procurement beyond traditional defense contractors.
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Lean Right

Despite Grok's recent slippage, the xAI start-up signed a contract with the US Defense Ministry. Against the backdrop of tensions between Elon Musk and Donald Trump.

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Center

Elon Musk's xAI inks Pentagon deal for contentious Grok chatbot

Elon Musk's xAI, which features a large language model that has spewed Hitler-supporting rhetoric and antisemitic tropes, said Monday it has signed a deal to provide its services to the US Department of Defense.

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Forbes broke the news in United States on Monday, July 14, 2025.
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