xAI Secures Government Contracts for Grok AI Tool

July 15, 2025
Elon Musk's xAI has announced new government partnerships for its AI tool, Grok, including a $200 million contract with the Department of Defense and availability through the GSA schedule.

xAI, led by Elon Musk, has announced significant strides in its government partnerships for its AI tool, Grok. According to FedScoop, xAI has secured a $200 million contract with the Department of Defense and made Grok available through the General Services Administration (GSA) schedule, allowing any federal agency to purchase the tool.

The announcement of 'Grok for Government' marks xAI's entry into the federal market, positioning it alongside other AI companies like OpenAI and Anthropic, which have also secured similar contracts. The GSA schedule access simplifies procurement for federal agencies, enabling them to integrate Grok's capabilities into their operations without lengthy bidding processes.

xAI's Grok 4 model, which claims to outperform competitors on key benchmarks, will be at the forefront of this government push. The company is also offering custom models for national security and critical science applications, with engineers holding government security clearances to support these initiatives.

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