Elon Musk’s Grok is now working with the US government; Pentagon awards mega contracts for new ‘frontier AI’ projects
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Jul 15, 2025
Elon Musk's xAI is making headlines with its new generative AI tool, Grok, aimed at U.S. government officials. The move follows recent controversies and involves partnerships with the Defense Department. The podcast dives into how Grok will be used across federal agencies and discusses major Pentagon contracts awarded to various AI companies, including xAI. These contracts focus on enhancing national security through innovative artificial intelligence technologies, promising a revolution in military operations.
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insights INSIGHT
xAI Launches Grok for Government
Elon Musk's company xAI launched "Grok for Government," offering AI tools for U.S. federal agencies.
The product suite is now purchasable through the General Services Administration for all federal departments.
insights INSIGHT
Pentagon Awards Mega AI Contracts
The Pentagon awarded $200 million contracts each to xAI, Anthropic, Google, and OpenAI for advanced AI.
These partnerships aim to boost national security capabilities including large language models and agentic workflows.
insights INSIGHT
AI Transforms Defense Support
AI adoption is rapidly transforming the Defense Department's support for warfighters and strategic advantage.
Integrating commercial AI solutions accelerates critical joint mission capabilities.
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xAI, the artificial intelligence company led by Elon Musk, announced new efforts Monday to get its generative AI tool, Grok, into the hands of federal government officials. In a post to X, the company announced “Grok for Government,” which it described as a suite of products aimed at U.S. government customers. FedScoop reported on the General Services Administration’s interest in Grok last week. xAI disclosed two new government partnerships: a new contract with the Defense Department, which we’ll get to in a moment, and that the tool was available to purchase through GSA. “This allows every federal government department, agency, or office, to purchase xAI products,” the post added. “We’re hiring mission driven engineers who want to join the cause.” The new products from xAI follow the introduction of government-specific AI intelligence platforms from companies like Anthropic and OpenAI. The announcement was made just days after xAI’s formal apology for the chatbot’s recent antisemitic outputs. Last Thursday, FedScoop reported that government coders at GSA were discussing, on GitHub, incorporating Grok into a testing sandbox associated with a yet-to-launch tool called AI.gov and GSAi, a GSA-created AI platform.
Anthropic, Google and xAI will join OpenAI on the CDAO’s nascent effort to partner with industry on pioneering artificial intelligence projects focused on national security applications. Under the individual contracts — each worth up to $200 million — the Pentagon will have access to some of the most advanced AI capabilities developed by the four companies, including large language models, agentic AI workflows, cloud-based infrastructure and more. Chief Digital and AI Officer Doug Matty said in a statement: “The adoption of AI is transforming the Department’s ability to support our warfighters and maintain strategic advantage over our adversaries. Leveraging commercially available solutions into an integrated capabilities approach will accelerate the use of advanced AI as part of our Joint mission essential tasks in our warfighting domain as well as intelligence, business, and enterprise information systems.” OpenAI received the first contract for the effort June 17 and will create prototypes of agentic workflows for national security missions. According to CDAO, work with all four vendors will expand the Pentagon’s experience with emerging AI capabilities, as well as give the companies better insights into how their technology can benefit the department.
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