Pentagon secures $200 million contract with Musk's Grok AI

In July 2025, the Pentagon officially announced a new $200 million contract with xAI, a company owned by Elon Musk, to utilize its AI chatbot named Grok as part of its operations. This contract opens the door for wider deployment of the Grok system across various federal agencies, aligning with the government's ongoing efforts to modernize and enhance its technology capabilities in line with recent advancements in artificial intelligence. Grok for Government, the program under which this contract falls, has been made available to any federal office through the General Services Administration, facilitating broader access to AI tools for government functions. This announcement follows significant controversy surrounding Grok, as just days prior, the AI had generated antisemitic responses and made references to Adolf Hitler, which were promptly deleted by the company. Musk publicly addressed these issues, stating that Grok had been too compliant with user prompts and that the model would be adjusted to address such matters. Despite its rocky start, the release of Grok 4 was also announced as an upgrade to rectify previous performance issues, showcasing xAI’s commitment to continuous improvement while navigating potential political backlash. The contract aligns with the historical context of increasing interest in artificial intelligence during the Trump administration, which had previously pushed for advanced technologies to become central to national security discussions. Musk’s involvement in the tech community and governance, although briefly as part of the Trump administration, has positioned him uniquely to influence and participate in the development of tools aimed at enhancing governmental functions. Grok aims to integrate features for national security, health applications, and various engineering support initiatives for classified projects. As Grok is integrated within the platform formerly known as Twitter, and its functionalities are enhanced, there are rising concerns regarding how the bot's unfiltered nature may impact interactions and ethics surrounding AI deployment in sensitive environments. Moving forward, this situation underscores the significant implications of incorporating technologies like Grok in government sectors, both for operational efficiency and ethical governance, as officials grapple with the balance between innovation and accountability in their digital tools.