xAI announces 200m US military deal after Grok chatbot had Nazi meltdown

The week after its Grok chatbot identified itself as "MechaHitler" and generated antisemitic posts, Elon Musk's xAI firm announced a contract with the US Department of Defense worth nearly 200m. The deal is for developing and implementing artificial intelligence tools for the agency. The DoD on Monday also announced similar contracts with 200m ceilings with several other major US-based artificial intelligence developers, including Google, Anthropic and OpenAI. The agency is partnering with the General Services Administration to make these companies' AI tools available for use throughout the federal government. "Leveraging commercially available solutions into an integrated capabilities approach will accelerate the use of advanced AI as part of our joint mission-essential tasks in our warfighting domain as well as intelligence, business, and enterprise information systems," the US chief digital and AI officer Dr Doug Matty said in a statement.