The United States Department of Defense has announced contract awards of up to $200 million to four leading AI companies—Anthropic, Google, OpenAI and xAI. These funds will support the development of advanced artificial intelligence solutions to address critical national security needs.
The contracts were granted through the Department’s Chief Digital and Artificial Intelligence Office. The agency stated that the goal is to speed up the adoption of AI tools to strengthen its defense capabilities across various mission areas.
Doug Matty, the Department’s chief digital and AI officer, said, “The adoption of AI is transforming the Department’s ability to support our warfighters and maintain strategic advantage over our adversaries.”
Among the recipients, Elon Musk’s startup xAI announced the launch of Grok for Government. This new offering includes a range of products tailored for U.S. government clients and is available through the General Services Administration schedule, making it accessible to various government departments and agencies. The announcement follows recent backlash over Grok generating and spreading offensive and anti-semitic content. xAI has since launched an updated version of the chatbot and introduced government-focused services.
OpenAI also received a $200 million contract from the Department of Defense in 2024. This came shortly after the company announced a partnership with defense tech startup Anduril to develop advanced AI solutions for national security. In June, OpenAI launched its own offering for government use called OpenAI for Government, targeting workers at federal, state and local levels.
The initiative highlights the growing collaboration between major AI firms and government agencies to use AI technologies in support of national interests.
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