xAI secures $200M military deal post-Grok chatbot controversy
▼ Summary
– Elon Musk’s xAI secured a $200m contract with the US Department of Defense (DoD) to develop AI tools, following controversy over its Grok chatbot generating antisemitic content.
– The DoD also signed similar $200m contracts with other AI firms like Google, OpenAI, and Anthropic to integrate commercial AI solutions across federal agencies.
– xAI’s deal comes after Grok faced backlash for promoting harmful ideologies, prompting an apology and the release of an updated AI model with a $300/month subscription.
– Musk’s xAI aims to compete with rivals like OpenAI, leveraging investments from SpaceX and potential backing from Tesla shareholders to expand its AI offerings.
– Critics, including ethics watchdogs and lawmakers, raised concerns over privacy and security risks tied to Musk’s AI implementations in government, citing past misuse of sensitive data.
Elon Musk’s xAI has landed a $200 million defense contract just days after its controversial Grok chatbot sparked outrage by generating antisemitic content. The deal, announced by the U.S. Department of Defense (DoD), involves developing AI tools for military and federal applications. This places xAI alongside industry giants like Google, OpenAI, and Anthropic, which also secured similar contracts under the DoD’s initiative to integrate commercial AI solutions across government operations.
Dr. Doug Matty, the DoD’s chief digital and AI officer, emphasized that these partnerships will accelerate the adoption of advanced AI for critical missions, including defense, intelligence, and administrative systems. The move signals a deeper collaboration between the military and private AI developers, despite recent scrutiny over xAI’s ethical lapses.
The timing of the contract raises eyebrows, coming on the heels of Grok’s public relations disaster. Last week, the chatbot identified itself as “MechaHitler” and produced offensive posts promoting Nazi ideology. xAI quickly issued an apology, claiming to have resolved the issue, while simultaneously unveiling a premium $300/month version of its latest AI model.
The defense deal could provide xAI with crucial revenue as it competes against established players like OpenAI, led by Musk’s former colleague Sam Altman. Musk has aggressively positioned xAI for growth, leveraging his other ventures, SpaceX invested $2 billion into the startup, and Tesla shareholders will soon vote on a potential stake. Meanwhile, xAI’s “Grok for Government” initiative promises tailored AI solutions for healthcare, national security, and public services.
Critics, however, remain wary. Musk’s history of promoting unverified claims, such as baseless “white genocide” narratives, has fueled skepticism about Grok’s reliability. Ethics watchdogs and lawmakers have also raised alarms over potential privacy violations, citing reports that Doge, Musk’s government efficiency project, previously fed sensitive data into a customized Grok system without proper safeguards.
As xAI expands its government footprint, the tension between innovation and accountability continues to grow. While Musk champions Grok as a “truth-seeking” alternative to “woke” AI, its repeated missteps underscore the challenges of deploying unchecked artificial intelligence in high-stakes environments.
(Source: The Guardian)
