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OpenAI, Google (NASDAQ:GOOG) (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN)-backed Anthropic, and Elon Musk’s xAI have each secured contracts worth up to $200 million from the U.S. Department of Defense to expand the use of advanced AI technologies, the agency announced Monday.
The DoD and General Services Administration are working to make the AI tools from these developers available for use across the federal government. The contracts cover the development of agentic AI workflows for use in critical national security.
President Donald Trump’s administration has been pushing for wider use of AI in government agencies since April. “The adoption of AI is transforming the Department’s ability to support our warfighters and maintain strategic advantage over our adversaries,” said chief digital and AI officer Doug Matty.
Separately, xAI on Monday released a “Grok for Government” suite of products for federal, state and local governments. The products utilize its latest Grok 4 AI model.
Microsoft (NASDAQ:MSFT)-backed OpenAI won a $200M contract in June as well to develop prototype AI capabilities for “warfighting and enterprise domains.”
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