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Amid feud with Donald Trump, Elon Musk's AI firm bags crucial US government contract

Amid feud with Donald Trump, Elon Musk's AI firm bags crucial US government contract

Elon Musk and Donald Trump have been fighting in public over a bill. Photograph: (AFP file)

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The Pentagon said these contracts will help the US defence establishment "leverage the technology and talent of US frontier AI companies.

Amid tensions between Elon Musk and Donald Trump, the Pentagon on Monday signed a host of contracts with several US artificial intelligence firms, including the Tesla founder's xAI. Other companies that bagged these contracts include Anthropic, Google, and OpenAI. The Pentagon's Chief Digital and Artificial Intelligence Office (CDAO) said in a statement that these contracts have a ceiling value of $200 million.

The Pentagon said these contracts will help the US defence establishment "leverage the technology and talent of US frontier AI companies to develop agentic AI workflows across a variety of mission areas".

Elon Musk's xAI praised Hitler

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The contract with xAI came just days after Elon Musk's company was forced to apologise again for controversial anti-semitic posts by its Grok chatbot. The chatbot had praised Adolf Hitler in some responses on Musk's social media platform, X. It denounced "anti-white hate" and described Jewish representation in Hollywood as “disproportionate.” The firm, apologising for the offensive messages, said it had corrected the instructions that led to the row.

Elon Musk vs Donald Trump over the US government's bill

Elon Musk, who backed Donald Trump's presidential campaign, was entrusted with managing DOGE, an agency tasked with reducing the size of the US government and cutting wasteful expenditure. In May, however, he exited the department and later slammed Donald Trump's budget bill for increasing government debt.

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The duo exchanged bitter messages on social media and public statements. Musk later apologised for some of his more combative remarks.

Grok for Government

Elon Musk's xAI said on Monday that it launched what it called a "Grok for Government" service.

In addition to the Pentagon contract, "every federal government department, agency, or office can now purchase xAI products" thanks to its inclusion on an official supplier list, xAI added.

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Vaibhav Tiwari

Vaibhav Tiwari is a journalist with over 14 years of experience in digital media. He has expertise in writing on a range of topics -- from news and policy to international affairs,...Read More