Pentagon Awards $200M AI Contracts to Tech Giants

July 15, 2025
The Pentagon has awarded $200 million contracts to Anthropic, Google, OpenAI, and xAI to enhance national security through advanced AI technologies.

The Pentagon's Chief Digital and Artificial Intelligence Office has awarded contracts valued at up to $200 million each to four major tech companies: Anthropic, Google, OpenAI, and xAI. These contracts aim to leverage advanced AI capabilities to address national security challenges.

Under these agreements, the Department of Defense will have access to cutting-edge AI technologies, including large language models and agentic AI workflows. This initiative is part of a broader effort to integrate commercially available AI solutions into the Pentagon's operations, enhancing its strategic capabilities in various domains such as intelligence and enterprise information systems.

The contracts also mark a significant step for xAI, which announced its 'Grok for Government' suite, making its AI tools available for purchase by federal agencies through the General Services Administration schedule. This move underscores the growing importance of AI in national security and the Pentagon's commitment to adopting innovative technologies to maintain a strategic advantage.

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