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xAI lands $200 million Pentagon contract amid Grok controversy | The Defense Department is seeking an edge in security with these next-gen partnerships
On Monday, the Department of Defense announced that it had signed similar agreements, also with ceilings of $200 million, with industry leaders including Google, Anthropic, and OpenAI....
This deal, announced just days after public controversy over antisemitic output produced by xAI's Grok chatbot, places the company among a slate of high-profile AI developers now working with the federal government. These contracts, managed in partnership with the General Services Administration, are designed to give government agencies across federal, state, and local levels access to advanced AI tools and applications. Musk has marshaled resources from his other technology ventures to support xAI, facilitating substantial investments, such as a $2 billion infusion from SpaceX and moves to have Tesla shareholders weigh in on funding the AI start-up.
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