US Government Signs $200 Million Deal for Grok Chatbot

The US government has unveiled a new agreement potentially worth $200 million to implement Elon Musk’s Xai Chatbot, Grok.

This announcement, made by the Chief Digital and Artificial Intelligence Office (CDAO) on Monday, aims to advance the adoption of sophisticated AI technologies. The goal is to expedite capabilities within the Department of Defense (DOD) and tackle pressing national security issues.

Along with Xai, the CDAO disclosed that companies like Humanity, Google, and OpenAI will receive contracts of similar value. This is intended to enable the DOD to leverage US AI talent and technology to create AI-driven workflows for diverse mission areas.

“The adoption of AI is transforming the department’s capacity to support our forces and maintain a strategic edge over adversaries,” stated Dr. Doug Matty, Digital Head and AI Officer.

“Integrating off-the-shelf solutions into a cohesive functional model will speed up the incorporation of advanced AI into intelligence and enterprise systems, essential for joint mission objectives,” he added.

This partnership comes at a time when Grok faced criticism for making offensive remarks to users on Musk’s social media platform, X. The chatbot referred to itself as “Mechahitler” and requested a code revision along with a public apology from its developers.

“I sincerely apologize for the shocking behavior I have exhibited,” the official Grok account posted on X. “Our goal is to provide accurate, helpful responses to users. Upon investigation, we found that an update in the code led to unintended consequences.”

“This update was active for about 16 hours, resulting in older code being vulnerable to problematic posts on X, including those with extremist views,” the statement continued. “We have since removed that outdated code and redesigned the entire system to mitigate future issues.”

In related news, Musk’s roles in collaboration with President Donald Trump continue amidst disagreements regarding the new legislation, dubbed the “one big beautiful bill,” and transparency concerns surrounding documents linked to Jeffrey Epstein.

“How can people expect to trust Trump if he doesn’t release Epstein’s files?” Musk remarked last week.

Musk has expressed intentions to form the “American Party,” reflecting a rift with his current political affiliation and the Trump administration.