The US Department of Defense will begin using Elon Musk's AI chatbot Grok, developed by xAI, in a $200 million contract aimed at national security, science, and healthcare innovation.

Pentagon to Deploy Elon Musk’s Grok AI in Major Defence Partnership


The United States Department of Defense has signed a significant deal to begin using Grok, the AI-powered chatbot developed by Elon Musk’s startup xAI, marking a bold move in the intersection of artificial intelligence and national security.

The agreement not only boosts the profile of Musk’s newest tech venture but also signals growing confidence in privately developed AI solutions for use in sensitive government operations. The deal positions Grok as a direct competitor to offerings from OpenAI, which has also secured its own contracts in the defence sector.

Grok AI: A New Player in the Defence Arena


The contract, reportedly capped at $200 million, outlines several forward-facing initiatives. These include the development of custom AI models tailored for national security, as well as solutions for critical scientific research and healthcare applications.

The Department of Defense is expected to collaborate with xAI on building advanced tools capable of accelerating progress in basic science, medical innovation, and high-stakes security analysis.

While Grok has previously drawn public attention for its conversational tone and bold responses on the social platform X (formerly Twitter), the Pentagon’s interest lies in its potential to support mission-critical decision-making and data processing at scale.

Musk vs OpenAI: A Battle of Algorithms in Washington


The Pentagon’s deal with xAI deepens the rivalry between Elon Musk and OpenAI, the company he co-founded in 2015 before parting ways. Musk has been openly critical of OpenAI’s direction under CEO Sam Altman and has positioned Grok as a more transparent and responsive alternative.

Both companies are now competing for influence in Washington’s AI agenda, where the demand for ethical, secure, and efficient artificial intelligence is accelerating rapidly.

Political Undercurrents and a Tech Billionaire’s Influence


The timing of the Grok contract also comes amid continued political tension between Musk and former U.S. President Donald Trump. Despite Musk spending close to $300 million in support of Trump and Republican campaigns during the 2024 election cycle, relations between the two figures have soured.

Musk has been increasingly vocal in criticising Trump’s economic policies, particularly over concerns regarding mounting national debt and what he described as “unsustainable” government spending.

However, the defence contract suggests that political friction has not deterred Washington from leveraging Musk’s AI expertise to advance national objectives.

 Grok AI Enters the Battlefield of Innovation

A Strategic Win for xAI and the Pentagon

The Pentagon’s decision to integrate Grok AI into its technological framework reflects a growing acceptance of commercial AI tools in government sectors traditionally guarded by in-house systems. For Elon Musk, it’s a strategic milestone — placing his xAI project at the centre of future-facing defence, science, and health advancements.

As artificial intelligence continues to shape national priorities, Grok’s role in the Pentagon’s ecosystem could become a defining moment in how private innovation partners with public defence.