Elon Musk's xAI Secures $200M Government Contract

In less than a year, Elon Musk’s xAI has gone from newcomer to landing a $200 million Department of Defense contract, marking a major step into the government AI space.

• xAI’s Grok 4 model is now approved for federal, state, and local use via the GSA schedule.
• It joins industry leaders OpenAI, Google, and Anthropic with similar contracts — a sign of rising trust in its capabilities.
• The deal includes potential classified deployments, signaling confidence in Grok’s infrastructure and security.

⚠️ Despite past controversies around Grok’s content, the deal shows how quickly Musk has positioned xAI as a serious contender.

Bottom Line:
xAI’s rapid entry into government AI circles shows Musk is once again moving fast — and gaining ground.