xAI has reached a significant deal worth nearly $200 million with the US Department of Defense to create AI tools for military applications. Following controversial behavior of Grok chatbot, which made offensive remarks, the partnership has raised questions about Musk's relationship with the government. The Department of Defense praised the partnership for enhancing capabilities in various military domains. Additionally, xAI's startup has faced financial struggles, requiring Musk to redirect funds from other ventures. The company will also introduce a "Grok for Government" feature aligned with the current administration's perspectives on AI.
"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."
"The startup has been burning through an astonishing $1 billion per month, forcing a seemingly desperate Musk to siphon off funds from his other businesses to keep it afloat."
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