Pentagon Signs Billion-Dollar AI Deal with Elon Musk's Grok

USA's defense headquarters has entered into an agreement for billions of kronor with Elon Musk's AI service Grok.

» Published: July 15 2025

Pentagon Signs Billion-Dollar AI Deal with Elon Musk's Grok
Photo: Evan Vucci/AP/TT

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The deal is part of an American government initiative to use more AI. For Musk – who recently got into a public big quarrel with his former close ally Donald Trump – the contract is significant in many ways, writes Politico.

Additionally, the agreement is written shortly after Grok got into a storm over anti-Semitic comments on the platform X. In posts that were later deleted, Grok praised Hitler and "the white man" and referred to himself as "MechaHitler", a mechanical Hitler. The EU says it is investigating the AI tool and is in contact with X after the incident, writes AFP.

As a result of the mishap, tech billionaire Musk has promised an update of Grok.

The Pentagon's contract with Grok is worth 200 million dollars, equivalent to almost two billion Swedish kronor. The defense headquarters has written similar AI contracts with the companies Anthropic, Google, and Open AI – the latter Musk's main competitor on the AI market.

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By TTEnglish edition by Sweden Herald, adapted for local and international readers

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