Grok enters the government market! The U.S. Department of Defense signs high-value contracts with Google, xAI, and three other giants
The U.S. Department of Defense has awarded contracts to four top artificial intelligence companies (Google, OpenAI, xAI, and Anthropic PBC) to accelerate the U.S. military's adoption of AI technology. Each contract has a ceiling of $200 million, and the head of CDAO stated that commercial solutions will be integrated to expedite the application of AI in military and intelligence fields. These contracts provide a significant source of revenue for AI companies, and xAI has also launched a government-focused product suite called "Grok for Government."
According to Zhitong Finance APP, the U.S. Department of Defense has awarded contracts to four top artificial intelligence development companies to accelerate the military's adoption of this emerging technology. The Department of Defense's Chief Digital and Artificial Intelligence Office (CDAO) announced on Monday that contracts will be awarded to Google, a subsidiary of Alphabet (GOOGL.US), OpenAI, Elon Musk's xAI, and Anthropic PBC. Although the specific amounts have not been disclosed, the agency stated that the cap for each contract is $200 million.
Doug Matty, head of CDAO, stated, "Integrating existing commercial solutions into a cohesive capability system will accelerate the application of advanced artificial intelligence in our joint missions, including operational domains, intelligence, business, and enterprise information systems."
These contracts provide significant revenue sources for AI companies that have been seeking to expand their influence in the public sector. xAI announced on social media on Monday that the company will launch a product suite for the U.S. government called "Grok for Government."
The U.S. Department of Defense stated that it is adopting a "commercial-first" strategy to accelerate the adoption of artificial intelligence. These agreements will also allow other federal agencies to use these AI tools through partnerships with the General Services Administration (GSA)
