The Pentagon announced Monday it has chosen Google, xAI, Anthropic and OpenAI to help the U.S. military expand its use of advanced artificial intelligence capabilities.
Each company received a contract worth up to $200 million, according to a notice from the Chief Digital and AI Office. The firms will help the Defense Department develop agentic AI workflows for key national security missions.
“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,” Chief Digital and AI Officer Doug Matty said in a statement.
The military services have adopted generative AI tools to varying degrees and for a range of tasks — from tech support to finding files. Agentic AI uses more advanced reasoning to address and act on more complex challenges.
The Pentagon didn’t specify what missions the program would support, but the department has said it wants to use AI in areas like intelligence analysis, campaigning, logistics and data collection.
Following the announcement, Elon Musk-owned xAI — whose conversational AI chatbot goes by the name Grok — unveiled a U.S. government-specific production line called Grok for Government.
Announcing Grok for Government – a suite of products that make our frontier models available to United States Government customers
We are especially excited about two new partnerships for our US Government partners
1) a new contract from the US Department of Defense
2) our…— xAI (@xai) July 14, 2025
Grok has come under scrutiny after an update generated a slew of racists and antisemitic comments. In one instance, the chatbot referred to itself as “MechaHitler.”
The award follows Musk’s months-long push from within the White House to slash federal spending. Amid a public falling out earlier this summer, President Donald Trump has threatened to cancel government contracts awarded to Musk’s companies. Under this new deal, however, the billionaire’s federal work would expand.
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