DoD Awards AI Contracts to xAI, Anthropic, Google, OpenAI

The U.S. Department of Defense has awarded contracts of up to $200 million each to four leading AI firms—Anthropic, Google, OpenAI, and Elon Musk's xAI—to accelerate the adoption of advanced 'agentic AI workflows' for national security. These contracts aim to bolster the military’s capabilities in warfighting, intelligence, and enterprise operations. xAI, despite recent controversies over antisemitic and extremist outputs from its Grok chatbot, has launched 'Grok for Government,' making its AI models available to federal, state, and local government agencies. All four companies' technologies will now be accessible through the General Services Administration for broader procurement. The awards come amid ongoing political tensions between Musk and former President Trump, but these disputes have not affected the contract outcomes. The initiative intensifies the integration of generative AI in U.S. defense, raising new questions about oversight, safety, and competition.