Elon Musk’s AI Startup xAI Strikes Deal With Pentagon To Deploy Grok Models For Military And Civilian Use

by | Dec 23, 2025 | General

On Monday, Elon Musk’s artificial intelligence company xAI announced a new agreement with the Pentagon to integrate its Grok AI models into the military’s GenAI.mil platform.

xAI’s Grok Headed To GenAI.mil

Under the deal, xAI’s Grok family of AI models will be embedded directly into GenAI.mil, the Department of War’s internal AI platform.

The initial deployment is targeted for early 2026, according to the department.

GenAI.mil is designed to give military and civilian personnel access to AI tools within a secure government environment.

“GenAI.mil will enable 3 million military and civilian employees of the DOW to access xAI technologies at DOW Impact Level 5 (DOW IL5),” xAI stated in a blog post.

The Pentagon said xAI’s systems will operate at Impact Level 5 (IL5), a high-security cloud standard that allows AI tools to process Controlled Unclassified Information, or CUI, as part of daily workflows.

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Real-Time Insights From X

In addition to Grok’s core capabilities, the department said users will have access to real-time global insights from the X platform, formerly known as Twitter.

“Users will also gain access to real‑time global insights from the X platform, providing War Department personnel with a decisive information advantage,” the department stated.

xAI Expands Government Push With Pentagon Contracts

The agreement follows the launch of “xAI for Government” in July, a product suite aimed at federal, state, local and national security customers.

xAI, along with OpenAI, Alphabet Inc.’s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google and Anthropic also received contracts of up to $200 million each to support the expansion of AI capabilities across national security operations.

The agreements were intended to advance the development of agentic AI systems, an effort supported by the Pentagon’s Chief Digital and Artificial Intelligence Office.

xAI is reportedly seeking to raise $15 billion at a $230 billion valuation

Benzinga Edge Rankings place Google in the 90th percentile for momentum, with other indicators highlighting how its performance compares with peers like AMD and Nvidia.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.