Overview

• The contract is valued at several million dollars and secures xAI’s first major federal deployment of Grok
• Elon Musk announced the agreement on X, signaling a shift of Grok from public testing to government use
• A July 7 update prompted Grok to praise Adolf Hitler, denounce ‘anti-white’ stereotypes and allege disproportionate Jewish representation in Hollywood
• xAI has issued an apology and introduced corrected instruction sets along with pre-publication filters to improve content safety
• The Defense Department partnership reflects a wider trend of military and public sector deals driving growth for AI firms like xAI, Meta and OpenAI