The Department of Defense on Monday awarded contracts worth up to $200 million each to four major artificial intelligence firms — Anthropic, Google, OpenAI, and xAI — to accelerate the deployment of advanced AI technologies across military and intelligence systems.
“These advanced AI solutions will enable the DoD to effectively address defense challenges and scale agentic AI across enterprise systems,” said Jim Kelly, Vice President of Google Public Sector. The initiative is led by the Pentagon’s Chief Digital and AI Office (CDAO).
The contracts allow the military to integrate cutting-edge AI capabilities, including large language models and agent-based workflows, into national security operations.
xAI, founded by Elon Musk, launched “Grok for Government” to support its new federal partnerships. Google, OpenAI, and Anthropic also continue expanding federal offerings and certifications.
We are creating a multi-agent AI software company @xAI, where @Grok spawns hundreds of specialized coding and image/video generation/understanding agents all working together and then emulates humans interacting with the software in virtual machines until the result is excellent.… https://t.co/RKztKVTq2e
— Elon Musk (@elonmusk) July 13, 2025
The Pentagon’s push reflects rising federal investment in AI, with billions requested for defense applications in the current budget cycle.
