Elon Musk's Grok AI Gets $200M Defence Deal After Hate Speech Issues
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July 16, 2025
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First aired: 15th July 2025
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Elon Musk's xAI has secured a $200 million government contract to deploy its Grok AI chatbot within the Department of Defence, despite recent controversies over the model's antisemitic outputs. The deal is part of an $800 million initiative that also includes contracts with Google, Anthropic, and OpenAI, with the DOD taking a diversified approach to testing multiple AI models for national security applications. While the contract amount sounds substantial, it's relatively modest compared to the $10 billion the Department of Defence previously spent on cloud infrastructure development.