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WASHINGTON: The U.S. Department of Defense has partnered with major players in artificial intelligence, including Google, OpenAI, and Elon Musk’s xAI, to enhance its operations with advanced AI technology, the agency announced on Monday.
Each company has secured contracts worth as much as $200 million to assist the Pentagon in addressing increasing national security challenges through sophisticated AI systems.
These contracts will allow the Department of Defense (DoD) to create advanced AI workflows and utilize them to tackle critical national security issues, according to the Chief Digital and Artificial Intelligence Office.
“The integration of AI is revolutionizing the DoD’s ability to empower our warfighters and uphold our strategic edge over adversaries,” stated Doug Matty, the Chief Digital and AI Officer.
U.S. government agencies have been stepping up their utilization of AI, propelled by a White House directive issued in April promoting its adoption. Former President Donald Trump took steps to ease regulations on the technology by rescinding a 2023 executive order from the Biden administration that aimed to mitigate AI risks through obligatory data disclosures.
In a related announcement on Monday, xAI introduced a range of products named “Grok for Government,” which makes its cutting-edge AI models, including the latest Grok 4, available to various government entities including federal, local, and state agencies.
Last month, the Pentagon revealed that OpenAI was awarded a $200 million contract, stating that the creator of ChatGPT would develop prototype AI capabilities aimed at solving vital national security concerns in both military and operational contexts.
The contracts disclosed on Monday signify a deepening collaboration between leading AI firms and U.S. government operations, addressing the growing need for competitive contracting in AI applications within federal agencies.
In May, Senator Elizabeth Warren urged the DoD to ensure competitive AI contracting as Musk’s Grok chatbot began gaining traction in federal institutions.


