Musk’s xAI Lands U.S. Defense Contract, Debuts AI Suite

- xAI secures a U.S. Department of Defense contract and launches "Grok for Government." - The new AI suite is now available to federal agencies through the GSA schedule. On July 14, 2025, Elon Musk’s artificial intelligence company, xAI, secured a contract with the U.S. Department of Defense (DoD) and unveiled "Grok for Government," an AI suite tailored for federal agencies. This product suite is now available through the Government Services Administration (GSA) schedule, which simplifies the procurement process for agencies that want to use cutting-edge AI solutions. In a statement on July 14, DoD Chief Digital and Artificial Intelligence Officer Doug Matty underscored the strategic significance of AI adoption, stating, “The adoption of AI is transforming the Department’s ability to support our warfighters and maintain strategic advantage over our adversaries.” This collaboration highlights the growing role of artificial intelligence in government operations, and with this contract, xAI joins industry leaders like OpenAI, Anthropic, and Google in aiding federal AI initiatives. "Grok for Government" arrives shortly after xAI faced scrutiny over its chatbot, “Grok,” which had generated antisemitic responses. Following the controversy, the company implemented major updates to enhance the product's safety and reliability, demonstrating its commitment to responsible AI standards and its effort to improve public trust. In a related development, The Wall Street Journal reported on July 14, 2025, that SpaceX, also led by Elon Musk, will inject $2 billion in funding into xAI to fuel its growth. While people have speculated about a potential investment from Tesla, Musk clarified that any such action would require shareholder and board approval, adding that the two companies do not plan to merge. Meanwhile, according to CoinMarketCap on July 14, 2025, Ethereum (ETH) was trading at $2,491 as of 12:00 UTC. This price marks a 3.8% increase in its 24-hour trading volume.