Anthropic, Google, OpenAI and xAI granted up to $200 million for AI work from Defense Department

This version of Anthropic Google Openai Xai Granted 200 Million Ai Work Defense Depart Rcna218733 - Technology and Innovation | NBC News Clone was adapted by NBC News Clone to help readers digest key facts more efficiently.

The DoD’s Chief Digital and Artificial Intelligence Office said the awards will help the agency accelerate its adoption of “advanced AI capabilities to address critical national security challenges.”
An aerial view of the Pentagon
The Pentagon.Jen Golbeck / SOPA Images/Sipa USA via AP

The U.S. Department of Defense on Monday said it’s granting contract awards of up to $200 million for artificial intelligence development at Anthropic, Google, OpenAI and xAI.

The DoD’s Chief Digital and Artificial Intelligence Office said the awards will help the agency accelerate its adoption of “advanced AI capabilities to address critical national security challenges.” The companies will work to develop AI agents across several mission areas at the agency.

“The adoption of AI is transforming the Department’s ability to support our warfighters and maintain strategic advantage over our adversaries,” Doug Matty, the DoD’s chief digital and AI officer, said in a release.

Elon Musk’s xAI also announced Grok for Government on Monday, which is a suite of products that make the company’s models available to U.S. government customers. The products are available through the General Services Administration (GSA) schedule, which allows federal government departments, agencies, or offices to purchase them, according to a post on X.

OpenAI was previously awarded a year-long $200 million contract from the DoD in 2024, shortly after it said it would collaborate with defense technology startup Anduril to deploy advanced AI systems for “national security missions.”

In June, the company launched OpenAI for Government for U.S. federal, state, and local government workers.

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