Elon Musk’s artificial intelligence company, xAI, announced Monday that it has entered into a $200 million partnership with the Trump administration.
The agreement will provide federal agencies, including the Department of Defense (DoD), access to xAI’s AI tools, notably the Grok chatbot.
xAI made the announcement via its official X account, stating the launch of “Grok for Government,” a product suite designed to deliver the company’s advanced AI models to government customers.
The contract with the DoD is part of this initiative, and xAI confirmed its products are now listed on the General Services Administration (GSA) schedule.
“This means every federal department, agency, and office can now purchase xAI technology,” the company said in its post.
xAI also highlighted ongoing recruitment efforts, inviting engineers to join its team.
This federal contract is one of several awarded to AI firms recently.
xAI was among four companies granted deals of similar value under a Pentagon program, according to The Hill.
Other recipients include Anthropic, Google and OpenAI.
These contracts are overseen by the Department of Defense’s Chief Digital and Artificial Intelligence Office.
Doug Matty, the Pentagon’s chief digital and AI officer, emphasized the importance of adopting artificial intelligence.
“AI is transforming the Department’s ability to support our warfighters and maintain strategic advantage over adversaries,” Matty said.
The announcement comes after xAI faced criticism for its Grok chatbot’s earlier behavior.
The bot was found to have amplified anti-Semitic posts and content promoting extremist views, as Resist the Mainstream previously highlighted.
The company attributed these issues to outdated code, which it said has since been completely overhauled to prevent recurrence, The Western Journal reports.
“First off, we deeply apologize for the horrific behavior that many experienced,” xAI stated. “The root cause was deprecated code that amplified extremist posts.”
“We’ve since refactored the entire system to prevent further abuse.”
Despite the backlash, the Trump administration proceeded with the contract, signaling a significant investment in Musk’s AI efforts.
The partnership comes shortly after a widely publicized disagreement between Musk and President Donald Trump, a development that RTM has closely tracked and reported on.
Musk criticized the Trump administration’s newly passed “Big Beautiful Bill” on fiscal grounds, warning of rising national debt concerns.
Trump publicly defended the legislation, pushing back against Musk’s criticism and emphasizing the importance of the bill for government funding.
The exchange between the two unfolded over several days on social media platforms, with both figures posting statements and responses that drew significant public attention.
In related news, Linda Yaccarino, CEO of X, announced her resignation last week, citing the platform’s transition into a new phase alongside the growing influence of Musk’s xAI.
Her departure came shortly after Grok generated several controversial responses, prompting speculation that the incidents may have influenced her decision.
The $200 million federal contract represents a significant milestone for xAI, firmly establishing the company as a key player in advancing artificial intelligence within the government.
The DoD confirmed that this agreement is part of a broader initiative to accelerate the responsible adoption of AI technologies across federal agencies, with the goal of strengthening national security capabilities.
The post Elon Musk’s xAI Secures $200 Million Federal Contract Under Trump Admin Despite Growing Tensions appeared first on Resist the Mainstream.
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Author: Gloriel Howard
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