OpenAI, Google, Anthropic, and xAI have secured contracts up to $200 million from the US Department of Defense (DoD) to enhance AI capabilities critical for national security. This initiative aims to develop agentic AI workflows, significantly improving the DoD’s strategic advantage, according to Chief Digital Officer Doug Matty. The expansion of AI use in government follows a White House directive from April to encourage technological advancement. Recently, xAI launched “Grok for Government,” offering its AI models, including Grok 4, to various government levels. Previously, OpenAI received a $200 million contract for developing AI capabilities for combat and enterprise needs. Tensions have arisen between Trump and Musk over government spending amid Musk’s xAI facing controversy for anti-Semitic outputs from its Grok chatbot, prompting an apology for the incident attributed to outdated code and extremist user input. This development underscores the growing importance of AI in military and governmental operations.
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