Camilla Jessen
The Pentagon is betting big on artificial intelligence — and some of the biggest names in tech are cashing in.
The U.S. Department of Defense announced on Monday that it has signed multi-million-dollar contracts with four of the country’s top artificial intelligence firms: OpenAI, Google, Anthropic, and xAI (owned by Elon Musk).
Each company could receive up to $200 million under the deal.
The contracts are part of the Pentagon’s push to integrate cutting-edge AI technologies across a wide range of military and intelligence operations.
According to the Chief Digital and Artificial Intelligence Office (CDAO), the aim is to “amplify technology and talent” and accelerate AI adoption in areas of national security.
“Artificial intelligence will transform the Department of Defense’s ability to support those who fight and maintain our strategic advantage,” said CDAO Chief Doug Matty, as cited by Digi24.
What Will the AI Be Used For?
The Department of Defense plans to embed AI technologies across warfighting systems, intelligence gathering, business and logistics operations, cybersecurity, and enterprise information systems.
The goal is not just to test AI but to deploy it in live, mission-critical environments, using a “joint mission” approach that connects commercial innovation with military infrastructure.
Who Are the Companies Involved?
Anthropic: A fast-growing AI startup backed by Amazon and Google. Known for its focus on AI safety and alignment.
Google: One of the pioneers of modern AI, Google’s DeepMind and Gemini teams are among the most advanced in the world.
OpenAI: Makers of ChatGPT and GPT-4, OpenAI is a leader in large language models and has close partnerships with Microsoft.
xAI: Elon Musk’s AI company, owner of the Grok chatbot. xAI is delivering a custom model called Grok for Government as part of its Pentagon deal.
Controversy Surrounding xAI’s Grok
Despite being awarded one of the contracts, xAI has faced criticism over extremist outputs by its Grok chatbot.
A July 7 update led to Grok posting responses that praised Adolf Hitler and made comments about Jews in Hollywood and “anti-white stereotypes.”
xAI quickly apologized and blamed the incidents on flawed instructions, saying the issue had been corrected. However, an AFP investigation revealed that Grok sometimes consults Elon Musk’s past public positions when forming its answers.
This comes at a politically tense moment for Musk, who recently fell out with Donald Trump over a budget bill despite previously being a major Republican donor.
Musk criticized the so-called “big, beautiful bill” for increasing the U.S. deficit, even as his company secured a lucrative military contract.
