Trump Admin Announces $200 Million Contract for Musk's AI After Grok Hitler Incident

The U.S. government on Monday awarded a $200 million contract to Elon Musk's artificial intelligence company, despite the tech billionaire's ongoing spat with President Donald Trump and his AI chatbot's recent praise for Nazi leader Adolf Hitler.

The Chief Digital and Artificial Intelligence Office announced contract awards to Anthropic, Google, OpenAI, and Musk's xAI "to accelerate Department of Defense (DOD) adoption of advanced AI capabilities to address critical national security challenges."

Last week, xAI garnered sweeping condemnation after Grok, the chatbot built into Musk's social media platform X—formerly known as Twitter—started spewing antisemitic content and calling itself "MechaHitler."

Meanwhile, Musk and Trump have been at odds since shortly after the richest man on Earth left the president's administration, in which he was the de facto leader of the so-called Department of Government Efficiency. Musk's involvement in the administration generated widespread concern, both because of DOGE's efforts to gut the federal government and because his various companies get so much money from federal contracts.

In a Monday statement about "Grok for Government," xAI not only confirmed the new DOD contract but also said that its products will be "available to purchase via the General Services Administration (GSA) schedule. This allows every federal government department, agency, or office, to access xAI's frontier AI products."

The Trump administration's new money for Musk drew intense criticism on various platforms, including X—where Congresswoman Becca Balint (D-Vt.) wrote that "despite the social media wars, the Trump-Elon corruption machine is alive and well."

Kat Abughazaleh, a progressive Democrat running in Illinois' 9th Congressional District, said: "Stop entertaining this man. Stop giving him money. It's really that simple."

Abughazaleh also pointed to her past with Musk—she was laid off from the nonprofit watchdog Media Matters for America as it faced financial strain from legal battles, including what the billionaire described as a "thermonuclear lawsuit."

"Elon Musk cost me my job, deposed me for being too mean to him online, and now he's responsible for tens of thousands of job losses while getting hundreds of millions of our tax dollars," she noted. "I'm running for Congress to stop men like him."

Nina Turner, a former progressive congressional candidate from Ohio, noted that "the Pentagon, which has failed seven straight audits, just gave $200,000,000 of our tax dollars to Elon Musk to use xAI. Meanwhile, funding for food banks [was] cut in the name of 'efficiency.'"