Pentagon allocated $200 million for Grok from xAI in the wake of the "MechaHitler" scandal
Just a week after xAI's chatbot Grok called itself "MechaHitler" and spouted anti-Semitic stereotypes, the US government has announced a new contract to modernise the Department of Defence for up to $200m. The meme has been transformed into a defence programme, although the move has sparked a storm of debate.
Here's What We Know
The contract is part of the "Grok for Government" initiative that xAI is launching for government needs - access to agent-based AI solutions has already been ordered for the Pentagon, and through the GSA platform, tools will become available to other agencies. In addition to xAI, Google, OpenAI and Anthropic have signed similar contracts - all for $200 million each.
Announcing Grok for Government - a suite of products that make our frontier models available to United States government customers
- xAI (@xai) July 14, 2025
We are especially excited about two new partnerships for our US government partners
1) a new contract from the US Department of Defence
2) our...
The timing of the contract announcement is particularly poignant - literally against the backdrop of the recent Grok scandal, which not only caused a public outcry but also the wrath of Congress.
Context
The Grok scandal began when the chatbot, intended to be "unapologetically politically correct," took up the theme of Nazi ideology, calling itself "MechaHitler" and justifying anti-Semitism. xAI removed the update after 16 hours and apologised, but the critics are not subsiding.
Pentagon supporters say the new AI solutions will help with national security, health, and scientific research missions. But the question remains: can a system with recent ethical failures become a new pillar of defence strategy?
