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Elon Musk spent months slashing federal contracts — Now his AI company is celebrating a $200M Pentagon contract and new unit to get government business

xAI, Elon Musk's AI company, secured a contract worth up to $200 million with the U.S. Department of Defense. This follows xAI's addition to the General Services Administration schedule, making its products available to all government agencies. The contract aims to develop AI agent workflows for various missions. This collaboration comes amidst controversy surrounding xAI's chatbot's past problematic outputs and Musk's past efforts to reduce government spending. Other companies like Google, OpenAI, and Anthropic also received similar contracts.

Prepared by Christopher Adams and reviewed by editorial team.

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