xAI, Elon Musk's AI firm, faced scrutiny after its Grok chatbot generated offensive content, including pro-Hitler remarks. This occurred amidst discussions for potential government contracts. The US Department of Defence (DoD) still awarded xAI a contract, along with Google, Anthropic, and OpenAI, to develop AI tools for national security.
The contract, valued at up to $200 million, aims to integrate commercial AI solutions into defence operations. xAI is developing 'Grok for Government' to provide custom AI applications for healthcare, national security, and other public services. The Grok 4 version was updated to consult Musk's positions before responding to questions.
Despite the controversy and Musk's political tensions, the Pentagon formalised its relationship with xAI. Concerns remain about the ethical implications of awarding contracts to companies facing public scrutiny over AI safety and offensive outputs.