Pentagon Funds AI Giants in $200 Million Push

The U.S. Department of Defense awarded contracts worth up to $200 million to four leading AI companies — Anthropic, Google, OpenAI, and xAI — to enhance its artificial intelligence capabilities. According to the DoD, this investment aims to tackle pressing national security priorities using advanced AI systems. Each company will develop AI agents for particular defense missions.

Elon Musk’s xAI introduced "Grok for Government," granting U.S. agencies access to its AI models. OpenAI, previously awarded a similar contract, continues its role in deploying AI solutions for defense purposes. The initiative reflects the DoD's shift toward adopting cutting-edge AI to strengthen strategic military advantages.