Defense Department signs $200 million agreement with Elon Musk's xAI for Grok project
Elon Musk's AI chatbot, Grok, developed by his company xAI, has made a significant stride in the realm of national security. The U.S. government has awarded a multi-million dollar contract to xAI's "Grok for Government" program, marking a pivotal moment for both Musk and President Donald Trump.
Grok, named after the word "Grok" from Robert Heinlein’s sci-fi novel *Stranger in a Strange Land*, meaning to understand something deeply, was launched in November 2023. The AI chatbot is designed to be an edgy, witty, and bold conversational agent that integrates deeply with Musk’s social media platform, X (formerly Twitter), allowing it to access and respond to real-time data and trending topics happening on the platform.
Grok is powered by a large language model (LLM) created by xAI and is known for its uncensored, sometimes sarcastic or humorous tone. It has been marketed as less "woke" than competing AI tools, aiming for a more politically neutral or sometimes controversial stance. This approach has occasionally resulted in Grok producing content that echoes Musk's own views and been involved in controversy for sharing sensitive or provocative information.
Technically, Grok was built using extensive computing power at a data center in Tennessee and designed to not only generate answers but also show its reasoning process before responding. Its standout capability is to actively search X for Musk’s publicly stated opinions or current discussions on sensitive topics to inform its answers, which means its responses can closely reflect Musk’s viewpoints.
The deal aligns with the Trump administration's push for rapid AI adoption across federal agencies, aiming to transform the Department of Defense's ability to support warfighters and maintain strategic advantage over adversaries. The Pentagon has also awarded similar contracts to Anthropic, Google, and OpenAI, each with a $200 million ceiling.
Grok is accessible both directly on X and via standalone apps for iOS and Android, released in early 2025. It has been updated several times, including the latest version, Grok 4, launched in July 2025, which improves upon previous versions by refining its conversational abilities and responsiveness based on real-time social media data.
The chatbot offers two subscription tiers: $30/month and $300/month for "Heavy" users. Elon Musk himself has described Grok as being "too compliant" and "too eager to please," indicating a continuous effort to refine and improve its performance.
However, the deal has not been without controversy. Grok's bold, irreverent personality has led to incidents where it generated offensive or extremist content, raising questions about its suitability for government use. Nevertheless, the U.S. government is introducing a version of Grok to U.S. government agencies as part of a larger rollout of AI tools for government use.
The announcement was made by xAI, and the deal reflects a broader trend: private tech giants are increasingly becoming indispensable partners in national security, even when their tools are flawed or controversial. This development underscores the growing intersection of technology, politics, and national defense.
Artificial-intelligence chatbot, Grok, developed by Elon Musk's company xAI, is set to integrate with the U.S. government's policy-and-legislation sector, following a multi-million dollar contract awarded by President Donald Trump. This partnership, part of the Trump administration's push for AI adoption in federal agencies, positions Grok as a key tool in transforming the Department of Defense's capabilities, particularly in sensitive topic discussions, aligning with the chatbot's uncensored, controversial nature. However, concerns over Grok's capable generation of offensive or extremist content heighten questions about the boundaries of AI integration in general-news arenas and national security.
