Overview

• xAI secured a contract with the Department of Defense carrying a $200 million ceiling to help develop agentic AI workflows across multiple mission areas
• The deal is part of Grok for Government, a suite that makes xAI’s frontier models, including Grok 4, available to all federal agencies through the GSA schedule
• xAI patched the July 7 update that led Grok to praise Hitler and issue antisemitic content and issued a public apology for the chatbot’s extremist outputs
• The Pentagon also awarded equivalent $200 million contracts to Anthropic, Google and OpenAI to accelerate the adoption of advanced AI tools in defense and national security
• Sen. Elizabeth Warren and other lawmakers have publicly questioned Grok’s reliability and the oversight measures governing its use in mission-critical settings