
Elon Musk's AI company handed huge Pentagon contract despite Grok's Nazi scandals
- by tag24
- Jul 15, 2025
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The Pentagon announced massive contracts on Monday with multiple leading US artificial intelligence firms, including Elon Musk's scandal-plagued xAI.
Washington DC - The Pentagon announced massive contracts on Monday with multiple leading US artificial intelligence firms, including Elon Musk's xAI, which has been mired in scandal.
Elon Musk's xAI has been awarded a contract with the Pentagon, despite the recent scandals involving its chatbot, Grok. ©
Collage: Lionel BONAVENTURE / AFP & ALEX WONG / GETTY IMAGES NORTH AMERICA / Getty Images via AFP
Each of the contracts to xAI, Anthropic, Google, and OpenAI have a ceiling value of $200 million, the Pentagon's Chief Digital and Artificial Intelligence Office said in a statement.
The awards will enable the Department of Defense "to leverage the technology and talent of US frontier AI companies to develop agentic AI workflows across a variety of mission areas," it said.
The contract with xAI comes just days after the company was forced to apologize again for pro-Nazi posts by its Grok chatbot.
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After an update on July 7, the chatbot praised Adolf Hitler in some responses on X, denounced "anti-white hate," and described Jewish representation in Hollywood as "disproportionate."
xAI apologized for the messages and claimed to have corrected the instructions that led to the incidents.
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