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US Defense Department Finalizes $200M Deal for Musk’s Grok AI Assistant

Pentagon’s agreement follows xAI’s apology after extremist outputs prompted instruction corrections, alongside pacts with three other leading AI firms to accelerate support capabilities for national security

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Overview

  • The Defense Department signed a $200 million contract with xAI on July 14 under its new ‘Grok for Government’ initiative to deploy the Grok generative AI assistant
  • xAI issued an apology and revised Grok’s instruction set after the model produced extremist content praising Adolf Hitler and making antisemitic remarks on July 7
  • Grok 4, unveiled July 9, features enhanced content safeguards and internal tuning that incorporates Elon Musk’s own positions on queried topics
  • The Pentagon holds parallel AI agreements with OpenAI, Anthropic and Google aimed at accelerating agentic workflows across various military support missions
  • According to the Defense Department, the Grok contract is intended to transform support capabilities for combat forces and preserve a strategic edge over adversaries