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Fortune
Fortune
Jessica Mathews

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

(Credit: SAUL LOEB/AFP via Getty Images)

Elon Musk’s xAI has signed an important new customer: the U.S. government. 

The two-year old AI company—most recently in the news when its chatbot praised Hitler—said in a blog post Monday that it has launched a new division, called “Grok with Government” and signed a contract worth up to $200 million with the Department of Defense. xAI also announced that it had been added to the General Services Administration schedule, meaning that xAI products will now be available for purchase across every government office and agency.

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