Completely finished with Trump... Musk's xAI signs new contract with US federal government

【Silicon Valley=Hong Chang-gi Correspondent】 

Elon Musk's artificial intelligence (AI) startup xAI has signed a new contract with the Department of Defense of the Donald Trump administration. The contract between xAI and the Trump administration is noteworthy as it was concluded after Musk stepped down as head of the Department of Government Efficiency (DOGE) and ended his relationship with President Donald Trump.
On the 14th (local time), xAI announced that it had signed a new contract with the US Department of Defense with a cap of $200 million (approximately 276.8 billion won).
Additionally, it was added that all agencies and departments of the federal government can purchase and use xAI's products through the General Services Administration (GSA).
In this regard, a US Department of Defense official said, "Along with xAI, four companies, including OpenAI, Google, and Anthropic, have signed contracts to provide AI services for the Department of Defense's business use."
Previously, the White House Office of Management and Budget issued new guidelines in April requiring federal agencies to ensure "public benefits derived from the competitive AI market."
Additionally, xAI announced the launch of AI services for government agencies. The AI service for government agencies launched by xAI is an AI product called 'Grok For Government' that US government agency customers can use.
xAI explained that it will provide world-class AI tools to federal, local, state, and national security customers. It also added that it will enable handling unresolved issues in basic science and technology fields, in addition to making everyday government services faster and more efficient.
The AI service for government agencies launched this time includes xAI's latest model, 'Grok 4', as well as industry-leading commercial products such as enhanced search and document tools.
Meanwhile, xAI has recently been embroiled in controversy for reportedly forcing the installation of monitoring software on the computers of its internal employees.
The US economic media Business Insider reported that xAI mandated employees responsible for training the chatbot Grok to install software called 'Hubstaff'. The media reported that this was used to measure each employee's work performance, raising concerns about privacy invasion among employees.





theveryfirst@fnnews.com Hong Chang-gi Reporter