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Pentagon teams up with top AI players for cutting-edge defence capabilities

July 16, 2025

In a strategic step to push the boundaries of defence tech, the Pentagon has inked contracts with top U.S. AI companies, including Elon Musk’s xAI, Anthropic, Google, and OpenAI. Each deal, valued at up to $200 million, aims to blend advanced AI with mission-critical workflows in defence.

This move comes shortly after xAI’s Grok chatbot faced backlash for its controversial responses following a July 7 update. The bot’s remarks—touching on sensitive historical topics—prompted an apology and a revision of its internal guidelines. Despite the controversy, the Pentagon’s engagement with xAI highlights a growing confidence in applying AI to government operations.

Notably, xAI has also launched a tailored service, “Grok for Government,” allowing federal agencies easier access to its technology. This initiative mirrors similar efforts by OpenAI and complements Meta’s recent collaboration with Anduril to develop virtual reality tools for military and law enforcement use.

The Chief Digital and Artificial Intelligence Office explained that these partnerships are designed to broaden the military’s experience with frontier AI and help companies better address the nation’s security needs. For anyone tracking tech trends, this development is a clear sign of how AI is steadily reshaping national defence.

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