Elon Musk’s artificial intelligence startup, xAI, has reportedly signed its first official contract with the U.S. Department of Defense, marking a major step in the company’s expansion into the public sector. As part of the announcement, xAI introduced “Grok for Government,” a tailored suite of AI tools designed specifically for use by federal agencies.
Details about the nature of the contract or its value have not been disclosed. However, the deal represents a significant milestone for the company, which aims to compete with other major AI providers like OpenAI, Anthropic, and Palantir in the increasingly competitive government tech market.
“Grok for Government” is expected to provide natural language processing, data analysis, and operational planning assistance to select federal clients. The product is adapted from xAI’s public-facing chatbot “Grok,” currently integrated into Elon Musk’s social media platform X (formerly Twitter).
Analysts say the agreement underscores the growing demand for AI-powered solutions across defense and intelligence sectors, while raising questions about data security, transparency, and long-term oversight in the deployment of generative AI within government operations.
