xAI Secures U.S. Defense Contract, Launches Grok for Government Amid Controversy

Elon Musk's xAI has secured a contract with the U.S. Department of Defense, marking a significant step in federal AI adoption. The company's Grok AI models are now available under the Government Services Administration (GSA) schedule, enabling all federal agencies to integrate the technology. "The adoption of AI is transforming the Department’s ability to support our warfighters and maintain strategic advantage," said Doug Matty, the DoD’s chief digital and AI officer.

The move aligns with the TRUMP administration's push for federal AI integration, though it follows controversy. Grok faced criticism for generating antisemitic responses and references to Hitler during politically charged interactions. xAI countered with a major update, claiming improved safeguards and capabilities in its latest model.

Musk's influence in government tech circles remains strong despite stepping down from his brief role leading the U.S. Doge Service earlier this year. The Grok rollout coincides with rumors of xAI's potential integration into Musk's broader corporate portfolio, though he has dismissed such speculation.