Overview

• White House press secretary Karoline Leavitt said President Trump likely does not support federal agencies contracting with Elon Musk’s xAI and could ask to cancel the deal.
• The Department of Defense granted xAI a ceiling contract worth up to $200 million last week to bolster AI capabilities across military commands.
• xAI announced its Grok for Government suite on the same day it received the Pentagon agreement, marketing the tools specifically to federal customers.
• The Chief Digital and Artificial Intelligence Office awarded similar ceiling contracts to Anthropic, Google and OpenAI as part of a broader push to accelerate AI adoption.
• The escalating feud between President Trump and Elon Musk, which intensified after Musk’s departure from a government advisory role, now extends to critical defense procurement decisions.