Pentagon awards contracts for AI adoption
Google, Musk's AI and others to get $200M each
Reuters
..... OpenAI, Alphabet's Google, Anthorpic and Elon Musk's AI firm xAI have won contracts of up to $200 million each, aimed at scaling up adoption of advance AI capabilities in the Department of Defense, the government agency said on July 14. [2025]
.....
The contracts will enable the Department of Defenses to develop agentic AI workflows and use them to address critical national security challenges, the department's Chief Digital and Artificial Intelligence Office said.
..... "The adoption of AI is transforming the (DOD's) ability to support our war-fighters and maintain strategic advantage over our adversaries," said Chief digital and AI Officer Doug Matty.
.....
U.S. government agencies have expanded AI use, driven by a White House order in April [2025] promoting adoption. President Donald Trump also moved to soften regulation on the technology by revoking a 2023 Biden-ear executive order, which sought to reduce AI risks through mandatory date disclosures.
..... Separately on July 14, [2025] xAI announced a suite of its products called "Grok for Government,' making its advanced AI models - including its latest flagship Grok 4 - available to federal, local and state and national security customers.
..... The Pentagon announced in June [2025] that OpenAI awarded a $200 million contract, saying the ChatGPT maker would "develop prototype frontier AI capabilities to address critical national security challenges in both war-fighting and enterprise domains."
..... The contracts announced on July 14 [2025] deepen the ties between companies leading the AI race and U.S. government operations, while addressing concerns around the need for competitive contracts for AI use in agencies.
..... In May, [2025] Democratic Senator Elizabeth Warren had urged the Department of Defense to ensure competitive AI contracting.