Pentagon Inks Contracts for Musk's xAI and Competitors

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July 14, 2025


The Pentagon announced contracts on Monday with multiple leading US artificial intelligence firms including Elon Musk's xAI, which has faced intense scrutiny in recent days over anti-Semitic posts by its Grok chatbot.

Each of the contracts to xAI, Anthropic, Google and OpenAI have a ceiling value of $200 million, the Pentagon's Chief Digital and Artificial Intelligence Office (CDAO) said in a statement.

The awards will enable the Department of Defense "to leverage the technology and talent of US frontier AI companies to develop agentic AI workflows across a variety of mission areas," it said.

The contract between xAI and the Department of Defense comes even as Musk and President Donald Trump have publicly feuded in recent weeks.


The government and the defense sector are considered a potential growth driver for AI giants.

Musk's xAI announced on Monday the launch of a "Grok for Government" service, following a similar initiative by OpenAI.

In addition to the Pentagon contract, "every federal government department, agency, or office (can now) purchase xAI products" thanks to its inclusion on an official supplier list, xAI said.

Meta meanwhile has partnered with the start-up Anduril to develop virtual reality headsets for soldiers and law enforcement.

OpenAI had previously announced in June that it had secured a Defense Department contract with a ceiling of $200 million.


"Establishing these partnerships will broaden DoD use of and experience in frontier AI capabilities and increase the ability of these companies to understand and address critical national security needs with the most advanced AI capabilities U.S. industry has to offer," said the CDAO statement on Monday.



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It's happening... this [Public-Private Partnership] Technocratic Rollout... under this "republican" president ----------> at WARP SPEED
 
Another successful psyop!

We knew something was up when the MSM started covering the caravans. Everyone should have.
 
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