xAI announces $200m US military deal after Grok chatbot had Nazi meltdown

Defense department also inked contracts with other leading AI firms including Google, Anthropic and OpenAI

The week after its Grok chatbot identified itself as “MechaHitler” and generated antisemitic posts, Elon Musk’s xAI firm announced a contract with the US Department of Defense worth nearly $200m. The deal is for developing and implementing artificial intelligence tools for the agency.

The DoD on Monday also announced similar contracts with $200m ceilings with several other major US-based artificial intelligence developers, including Google, Anthropic and OpenAI. The agency is partnering with the General Services Administration to make these companies’ AI tools available for use throughout the federal government.

(snip)

The contracts deepen the US military’s ties with AI developers and are poised to expand the use of artificial intelligence within the US government after Musk’s so-called ‘department of government efficiency’ (Doge) oversaw mass firings of workers throughout federal agencies. Until Musk’s recent falling out with Donald Trump, the xAI founder was de facto leader of Doge as it gutted government agencies and in some cases pushed for departments to use the Grok chatbot.

xAI’s contract announcement comes after the company was forced to issue a public apology after Grok posted a string of responses on X last week that included promoting Nazi ideology and rape fantasies. The company claimed that it fixed the issue and subsequently unveiled its latest AI model with a $300 a month subscription for an advanced version of the tool.

(snip)

https://www.theguardian.com/technology/2025/jul/14/us-military-xai-deal-elon-musk