Defense Department Partners with Musk’s xAI as Intelligence Race Heats Up

Elon Musk’s xAI has entered a partnership with the Defense Department to produce tools for the U.S. government.

The program, called Grok For Government, will bring tools to “federal, local, state, and national security customers” in order to “accelerate America,” xAI said. These tools include the latest model of Grok as well as “Deep Search, Tool Use, and more integrations – all of which are industry-leading commercial products.”

Government customers will uniquely be able to have “custom models for national security and critical science applications,” custom AI applications, and “Forward Deployed Engineering and Implementation Support, with USG cleared engineers.”

“America is the world leader in AI, and this is in no small part due to a tradition of innovation and strong investments in engineering and science,” the company said. “We’re excited to contribute back to the country that made xAI uniquely possible here.”

The Chief Digital and Artificial Intelligence Office (CDAO) also announced that xAI, as well as Anthropic, Google, and OpenAI, have each received a $200M ceiling contract for “developing agentic AI workflows across a variety of mission areas.”

“The adoption of AI is transforming the Department’s ability to support our warfighters and maintain strategic advantage over our adversaries,” Chief Digital and AI Officer Dr. Doug Matty said in a statement. “Leveraging commercially available solutions into an integrated capabilities approach will accelerate the use of advanced AI as part of our Joint mission essential tasks in our warfighting domain as well as intelligence, business, and enterprise information systems.”

The agreement builds upon the Defense Department’s efforts to “address critical national security challenges in both warfighting and enterprise domains,” the DOD said upon announcing its contract with OpenAI last month.

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