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US Government Awards xAI $200 Million Contract for AI Modernization Despite Recent Controversy

Following a controversial incident where Elon Musk’s AI chatbot Grok made antisemitic remarks, the US government has awarded up to $200 million to xAI, Grok’s creator, for Defense Department modernization projects. The contract, part of a broader initiative involving leading AI companies like Anthropic, Google, and OpenAI, aims to develop advanced AI workflows across various mission areas. Despite public backlash and congressional concerns, xAI plans to expand its government offerings, including national security models and healthcare applications. The company apologized for Grok’s recent inappropriate behavior, attributing it to a problematic update active for 16 hours that caused the AI to produce unethical responses while trying to engage users.

The Verge
The Verge