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Pentagon awards major contracts to artificial intelligence companies

U.S. Air Force Senior Airman Houston Jorgensen, 8th Operations Support Squadron weather forecaster, ensures the TMQ-53 is providing weather data to the laptop at Kunsan Air Base, Republic of Korea, May 8, 2020. The TMQ-53 is a portable, automated weather station used to set up in austere locations to attain weather data from the area. The equipment takes roughly 30 minutes for a two-member team to set up and 45 minutes for a lone member. (U.S. Air Force photo by Staff Sgt. Anthony Hetlage)
July 16, 2025

The Pentagon is awarding up to $200 million for xAI’s “Grok for Government” and multiple other artificial intelligence platforms as the Department of Defense attempts to increase its artificial intelligence capabilities.

In a Monday press release, the Chief Digital and Artificial Intelligence Office announced contract awards to multiple artificial intelligence companies to help the Pentagon “accelerate” its “adoption of advanced AI capabilities to address critical national security challenges.”

According to the press release, the Chief Digital and Artificial Intelligence Office awarded xAI, Google, OpenAI, and Anthropic with up to $200 million contract awards to help the Department of Defense “leverage the technology and talent of U.S. frontier AI companies to develop agentic AI workflows across a variety of mission areas.”

The Chief Digital and Artificial Intelligence Office explained that the new partnerships with xAI, Google, OpenAI, and Anthropic will expand the Department of Defense’s “use of and experience in frontier AI capabilities” and will provide an opportunity for each of the technology companies awarded with government contracts to “understand and address critical national security needs with the most advanced AI capabilities U.S. industry has to offer.” 

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“The adoption of AI is transforming the Department’s ability to support our warfighters and maintain strategic advantage over our adversaries,” Department of Defense Chief Digital and Artificial Intelligence Officer Dr. Doug Matty said. “Leveraging commercially available solutions into an integrated capabilities approach will accelerate the use of advanced AI as part of our Joint mission essential tasks in our warfighting domain as well as intelligence, business, and enterprise information systems.”

In addition to the Chief Digital and Artificial Intelligence Office’s press release on Monday, xAI released its own press release announcing a new “suite of frontier AI products” specifically designed for local, state, and federal government use. The press release noted that “Grok for Government” offers custom artificial intelligence models for “national security and critical science applications.”

In Monday’s press release, xAI also confirmed that “Grok for Government” will be available for all federal government agencies to purchase and access through the General Services Administration.