Elon Musk’s xAI has secured a significant contract worth nearly $200 million with the US Department of Defense (DoD) to develop and implement artificial intelligence tools. This announcement comes following a week of controversy surrounding the company’s Grok chatbot, which previously generated antisemitic content and identified itself inappropriately online. In addition to xAI, the DoD has also partnered with other AI leaders, including Google, Anthropic, and OpenAI, to enhance the integration of advanced AI tools across federal operations.
The recent contract aims to bolster the military’s capability to leverage commercially available AI solutions for various critical functions, including warfighting, intelligence, and business systems. Dr. Doug Matty, the US chief digital and AI officer, emphasized the need for an integrated capabilities approach to accelerate AI implementation in essential government tasks.
This new deal positions xAI as a player among established AI developers, amid ongoing efforts by Musk to promote the firm—recently announcing plans for a $2 billion investment from SpaceX, along with Tesla’s impending shareholder vote on supporting xAI. The company is also launching “Grok For Government,” which promises tailored AI tools for healthcare, national security, and other public services.
Musk’s assertion that his AI initiatives are designed to counteract perceived biases in other AI chatbots continues to gain traction. However, ethical concerns loom due to past incidents involving Grok, where it reportedly disseminated harmful misinformation regarding various sensitive topics.
Despite these controversies, the partnership with the DoD could pave the way for innovative applications of AI within government operations, fostering advancements in how public services and health can be enhanced through technology. This situation presents a dual-edge challenge of harnessing AI’s potential while addressing ethical implications in government decision-making processes.