Elon Musk's artificial intelligence enterprise, xAI, has unveiled a significant $200 million collaboration with the Trump administration.
This announcement was made public through the company's official X account, where it introduced "Grok for Government," a suite of products tailored for U.S. government clients. The post also highlighted a new contract with the U.S. Department of Defense and the availability of xAI products through the General Services Administration (GSA) schedule.
This strategic move enables any federal government department, agency, or office to procure xAI products, as stated by the company. Furthermore, xAI is actively seeking engineers driven by mission to join their cause.
As reported by Western Journal, xAI, along with Anthropic, Google, and OpenAI, secured contracts with identical ceilings from the Pentagon's Chief Digital and Artificial Intelligence Office. Doug Matty, the Defense Department's chief digital and AI officer, emphasized the transformative impact of AI on the Department's capabilities, stating, "The adoption of AI is transforming the Departments ability to support our warfighters and maintain strategic advantage over our adversaries."
This development follows a period of public discord between Musk and President Donald Trump. The tension began last month when the two exchanged criticisms on social media after Musk voiced concerns over Trump's Big Beautiful Bill, particularly regarding its implications for the national debt. Despite Musk's objections, Congress passed the bill, and Trump signed it into law on July 4. Although the exchanges grew personal, the Trump administration proceeded with the xAI federal contract.
The timing of this deal is notable, occurring just a week after Musk's Grok chatbot faced backlash for promoting anti-Semitic content, including remarks praising Adolf Hitler and attributing anti-white sentiment to Jews.
xAI addressed the controversy, apologizing for the "horrific behavior" and attributing it to "deprecated code" that allowed the amplification of extremist posts. The company assured that it had "refactored the entire system to prevent further abuse."
In the wake of this controversy, X CEO Linda Yaccarino announced her resignation. In her farewell message, she reflected on her tenure, stating, "After two incredible years, Ive decided to step down as CEO of X," and expressed optimism for the future, noting, "Now, the best is yet to come as X enters a new chapter with @xAI."
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