Grok enters the government market! The US Department of Defense signed high-value contracts with four giants including Google and xAI

The Zhitong Finance App learned that the US Department of Defense has awarded contracts to four top artificial intelligence development companies with the aim of speeding up the adoption of this emerging technology by the US military. The US Department of Defense's Office of Digital and Artificial Intelligence (CDAO) said on Monday that it will award contracts to Google, OpenAI, Elon Musk's XAI and Anthropic PBC under Alphabet (GOOGL.US). Although the exact amount has not been disclosed, the agency said that each contract is capped at $200 million.

Doug Matty, head of the CDAO, said: “Integrating existing commercial solutions into a collaborative capability system will accelerate the application of advanced artificial intelligence in our joint missions, including combat fields, intelligence, business and enterprise information systems.”

These contracts provide an important revenue stream for AI companies that have always wanted to expand their influence in the public sector. xAI said on social media on Monday that the company will launch “Grok for Government,” a product suite for the US government.

The US Department of Defense said it is adopting a “business-first” strategy to accelerate the adoption of artificial intelligence. The agreements will also allow other federal agencies to use these AI tools through partnerships with the General Services Administration (GSA).