Elon Musk spent months slashing federal contracts — Now his AI company is celebrating a $200M Pentagon contract and new unit to get government business

Illon Musk has signed an vital new agent: the USA authorities.
the The two -year -old artificial intelligence company– Lately within the information, when Chatbot Hitler praised – is glad in a Blog post On Monday, I launched a brand new part, referred to as “Grok with Goovernment” and signed a contract of $ 200 million with the Ministry of Protection. Xai has additionally introduced that it has been added to the Public Companies Administration schedule, which signifies that Xai merchandise will likely be now obtainable for buy by means of each authorities workplace and company.
The primary digital and synthetic intelligence workplace stated in a press assertion, with out offering many particulars, that the brand new Ministry of Protection contract from Xai is a part of a brand new effort to develop the workflow of the AI agent by means of a “number of activity areas”. GoogleOpenai and Anthropor additionally granted as much as $ 200 million as a part of the brand new effort, in line with the primary digital and synthetic intelligence workplace. Quite a few know-how firms, together with Deadand AmazonAnd Google, both began working with or elevating their work with the USA authorities final yr with the lower in taboos within the Silicon Valley to work with the Ministry of Protection.
It’s probably that the brand new Xai relationships with the Pentagon eyebrows are usually not a minimum of as a result of the corporate has issued an replace to the Grok Ai mannequin that prompted racist feedback, together with In reference to herself as “mechaitler”. There may be additionally the truth that the CEO of Xai, Musk has spent the previous six months in an try to cut back “Smoothing” Within the authorities by means of the Ministry of Governmental effectivity (Doge). Canines claims that he offered $ 190 billion of US taxpayers {dollars} by July – in a big half by slicing authorities contracts that it stated was previous or illuminated (Doug is claimed to haven’t offered paperwork or proof of 40 % of those reductions, Investigations The evaluation within the reductions indicated that these figures have been largely exaggerated.) Now Xai is competing to acquire the USA authorities so as to add many contracts that will value a whole bunch of hundreds of thousands of {dollars}.
One other improvement is that the Grok Declaration comes at a time when the present authorities is shifting in varied musk firms It appears to be on thin ice. In June, amid social media disagreement within the yr between Musk and Trump that began with Musk criticism Among the many “lovely draft legislation” of Trump, Trump threatened to chop all of the contracts of the musk authorities by means of his varied firms. Musk, in flip, recommended that it might flip off the Dragon’s Spacex capsule, which is the primary technique that reaches NASA to astronauts to the Worldwide House Station and return to Earth. Musk has achieved greater than $ 38 billion In contracts with the American authorities through the years.
Xai says that she desires to start out serving federal, native, state safety and nationwide safety shoppers, and that, for these prospects, it would begin constructing fashions for nationwide safety safety or “decisive science” functions that will likely be obtainable in “labeled environments and different restricted environments” and that they may present particular engineering help with USG engineers.
Whereas Musk is now not working with DOGE, it’s nonetheless effectively linked to some authorities circles. One in all his allies contained in the Trump administration was Katie Miller, who served as a journalist journalist for Mike Pines when he was vp throughout Trump’s first presidency. Miller can also be the spouse of Stephen Miller, Deputy Chief of Workers of Trump Politics, and has since then I started working in xi Since Mosk Canine left. On Monday, Miller was selling new authorities plans for Xai on her social media account, saying that Grok was “the one synthetic intelligence searching for the reality obtainable to the American authorities.”
Xai and the Ministry of Protection didn’t reply to the suspension requests. GSA stated that it really works with “a number of” options of synthetic intelligence in varied companies and that it welcomes “all American firms and fashions that adhere to our provisions and our situations.”
2025-07-14 22:24:00