Elon Musk spent months slashing federal contracts - Now his AI company is celebrating a $200M Pentagon contract and new unit to get government business
Briefly

xAI has launched a division named 'Grok with Government' and secured a two-year contract worth up to $200 million with the U.S. Department of Defense. The collaboration involves the development of AI agent workflows for various missions. Alongside xAI, companies like Google and OpenAI also received contracts in this initiative. Recent controversies surrounding xAI include a release that prompted racist comments from its Grok AI model. These developments occur amid Musk's efforts to reduce government spending through the Department of Government Efficiency, which claims substantial taxpayer savings.
xAI has launched a new division called 'Grok with Government' and signed a contract worth up to $200 million with the Department of Defense.
The new DoD contract aims to develop AI agent workflows across various mission areas, although specifics were not disclosed.
xAI’s ties with the Pentagon come amidst scrutiny due to a recent incident where its Grok AI model made racist comments.
Musk's efforts to cut wasteful spending in the government may conflict with the new $200 million contract awarded to xAI by the DoD.
Read at Fortune
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