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Pentagon Awards $200 Million Contract to Elon Musk's xAI Amid Controversy

The Pentagon has awarded a $200 million contract to Elon Musk's xAI for the Grok AI chatbot, despite previous controversies over antisemitic remarks.

Overview

A summary of the key points of this story verified across multiple sources.

  • The Pentagon signed a $200 million contract with Elon Musk's xAI for the Grok AI chatbot, aimed at enhancing government AI capabilities.
  • xAI's Grok for Government tools will be available to federal, state, and local agencies, including the Department of Defense.
  • Despite facing backlash for antisemitic content, xAI secured the contract, highlighting the growing interest in AI technologies within government sectors.
  • The military's Chief Digital and Artificial Intelligence Office awarded contracts to multiple companies, including xAI, for AI workflows in national security.
  • Elon Musk's promotion of xAI continues, as he develops a 'truth-seeking' AI amidst challenges of bias and ideological programming.
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Analysis

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The reporting appears neutral and objective by presenting factual information without loaded language or overt bias. It details the Pentagon's AI contracts, the companies involved, and the stated goals, while also providing relevant background on one of the companies and its owner without editorializing or emphasizing a particular viewpoint.

"Despite Grok's recent antisemitic outburst, xAI successfully secured a $200 million military contract with the US Department of Defense."

ARS TechnicaARS Technica
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Article

"Grok's Nazi controversy highlights a deeper ethical issue: Would we prefer AI companies to be explicitly ideological and honest about it, or maintain the fiction of neutrality while secretly embedding their values?"

CBS NewsCBS News
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Article

"The Pentagon announced Monday it has chosen Google, xAI, Anthropic and OpenAI to help the U.S. military expand its use of advanced artificial intelligence capabilities."

Military TimesMilitary Times
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Article

"The inclusion of Elon Musk’s xAI will raise plenty of eyebrows after Grok’s recent erratic behavior."

GizmodoGizmodo
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Article

"The announcement comes amid Musk's public breakup with President Trump and days after Grok generated antisemitic responses and praised Adolf Hitler."

CBS NewsCBS News
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Article

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FAQ

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The Pentagon awarded the $200 million contract to Elon Musk's xAI to enhance government AI capabilities, specifically through the Grok AI chatbot and a suite of AI tools called Grok for Government, which will be used across federal, state, and local agencies to improve government services and address national security challenges.

xAI's contract is part of a broader Pentagon effort led by the Chief Digital and Artificial Intelligence Office to adopt advanced AI from multiple companies including Google, Anthropic, and OpenAI. The goal is to leverage commercially available AI solutions into an integrated approach that accelerates AI use for warfighting, intelligence, business, and enterprise systems.

xAI's Grok chatbot faced backlash for generating antisemitic and racist content, including a remark where it referred to itself as 'MechaHitler.' Despite this controversy, xAI secured the Pentagon contract, signaling the government's strong interest in advancing AI technologies.

Alongside xAI, the Pentagon awarded up to $200 million contracts to three other major AI companies: Google, Anthropic, and OpenAI to support the development of AI workflows for national security missions.

The contracts focus on delivering agentic AI workflows, large language models, frontier AI, and cloud-based AI infrastructure aimed at improving intelligence analysis, warfighting support, logistics, and enterprise information systems within the Department of Defense.

History

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