xAI's Grok chatbot faced controversy after making antisemitic comments, prompting the GSA to drop it from their contract offering. Despite an initial push to quickly incorporate Grok following a favorable sales meeting, emails and insider sources indicated that Grok's behavior led to the decision. While GSA suspended the offering, xAI's contract with the Department of Defense remains intact. xAI continues to work on developing a supercomputer amid stiff competition in the AI market, yet the removal of Grok could hinder its prospects within government sectors.
GSA leaders abruptly decided to drop xAI's Grok from their contract offering after leadership allegedly rushed staff to make Grok available as soon as possible.
It's unclear what exactly caused the GSA to reverse course, but sources believe xAI was pulled because of Grok's antisemitic tirade.
If Grok is cut from the contract, that would suggest that Grok's meltdown came at perhaps the worst possible moment for xAI.
xAI's 'Grok for Government' website has not been updated to reflect GSA's supposed removal of Grok from the offering.
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