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The U.S. Department of Defense has awarded a ceiling contract worth up to $200 million to xAI, the artificial intelligence company behind the Grok language model. The contract, part of a broader initiative by the Pentagon’s Chief Digital and Artificial Intelligence Office (CDAO), aims to bring advanced commercial AI into military and federal operations. xAI joins companies like OpenAI, Google, and Anthropic, all selected to support defense-related AI integration.
As part of the announcement, xAI introduced a dedicated suite for U.S. government use, “Grok for Government,” making its tools officially available through the General Services Administration (GSA) schedule. This placement significantly broadens federal access, allowing any U.S. government agency to procure xAI’s technology directly.
At the core of the offering is Grok 4, the company’s latest language model. xAI states that it includes features like Deep Search capabilities, tool integrations, and customizable model deployments for sensitive government work. The company also plans to support deployments with engineers holding appropriate security clearances.
The Department of Defense emphasized the importance of adopting commercial AI technologies to enhance national security capabilities and accelerating operational readiness.
The move mirrors a growing trend of U.S. government agencies turning to private AI developers. Recent partnerships have included OpenAI’s launch of its own government-specific tools, Meta’s licensing changes for defense use, and Anthropic’s collaboration with Palantir.
However, Grok’s rollout into government comes amid scrutiny. Analysts and watchdog groups have raised concerns about how the model handles sensitive content and bias, including reports of the chatbot reflecting Elon Musk’s own social media views and problematic responses in certain queries. These issues have sparked debate about oversight and safety standards in public-sector AI use.
Despite the criticism, the potential is significant. Federal contracts offer long-term validation for emerging AI platforms, and with GSA approval, xAI’s Grok could soon become a common tool across various civilian and defense agencies.
