--- title: "Grok’s “MechaHitler” Meltdown Reportedly Cost xAI a Massive Government Contract" description: "Elon Musk's xAI lost out on a huge contract with federal agencies after Grok went on a racist meltdown in which it started praising Hitler." date: "2025-08-17" modified: "2025-08-17" authors: - name: "Frank Landymore" job_title: "Contributing Writer" link: "https://futurism.com/authors/flandymore" url: "https://futurism.com/grok-mechahitler-meltdown-xai-government-contract" categories: - "Artificial Intelligence" - "xAI" tags: - "elon musk" - "grok" - "trump administration" - "xai" --- # Grok’s “MechaHitler” Meltdown Reportedly Cost xAI a Massive Government Contract ![Elon Musk's xAI lost out on a huge contract with federal agencies after Grok went on a racist meltdown in which it started praising Hitler.]() *\Image: Marc Piasecki via Getty / Futurism\* Elon Musk's company xAI lost out on a massive government contract after its Grok chatbot went full Nazi last month and [started calling itself "MechaHitler"]() while spewing racist rants, [*Wired* reports](). It's a striking revelation, if confirmed. The Trump administration has shown little restraint in its whirlwind push to [stuff AI]() into federal agencies. It's even [used AI]() to help carry out its purge of DEI and so-called "woke" content in government, including [deleting a page]() dedicated to the Black baseball legend Jackie Robinson, and [ordering NASA to remove references]() specifically targeting women. Backing down from the Grok deal would be a rare example of the administration — [which aims to ban woke AI]() — apparently deeming one of its AI efforts going beyond the pale. According to *Wired*, xAI was set to join a partnership that the General Services Administration, the agency that handles government technology, made with three other leading AI companies to give federal employees access to their AI tools for just $1. That partnership, which ended up including OpenAI, Google, and Anthropic, was [announced]() last week. The idea was first put forth by OpenAI CEO Sam Altman in May, and in June, GSA leadership met with xAI "to see what opportunities may exist for automation and streamlining," per an email obtained by *Wired*. The leadership came out of the meeting enamored by Musk's chatbot, baffling their subordinates. "We kept saying 'Are you sure?' And they were like 'No we gotta have Grok,'" one employee involved in the talks told *Wired*. Soon enough, xAI was added to the GSA Multiple Award Schedule, the agency's long-term contracting program, according to *Wired*, which would've allowed federal agencies to buy access to Grok through an intermediary. The deal, it seemed, was pretty much sealed until the "MechaHitler" incident happened. Beyond using this outrageously offensive sobriquet, Grok also praised the Nazi leader, called for a [second Holocaust](), and altogether invented new ways of disparaging Jewish people. xAI was forced to release a statement and [delete some of Grok's posts](), but these events went completely unacknowledged by Musk. At first, this didn't appear to dampen leadership's enthusiasm for the bot. And again, their underlings were left stupefied. "The week after Grok went MechaHitler, \[GSA leadership\] was like 'Where are we on Grok?'" the same employee told *Wired*. "We were like, 'Do you not read a newspaper?'" Right before the GSA was supposed to announce its partnership with xAI, staff were told to remove Grok from the contract offering. The official reason is unclear, but two employees told *Wired* they believe it's because of Grok's "MechaHitler" meltdown. The warning signs were there long before that episode, however. Grok's entire raison d'être was to be an "anti-woke" alternative to mainstream AI, and Musk has frequently [declared his intent]() to tinker with the chatbot whenever he feels it gives responses that don't align with his extreme beliefs. In May, Grok began to randomly ramble about claims of "[white genocide]()" in South Africa under completely unrelated tweets. Musk, a white South African, is a proponent of the racist conspiracy theory. Big picture-wise, getting turned down by an openly "anti-woke" administration is emblematic of how Musk's right-wing pivot can alienate fans, and more importantly, customers. His other business venture, SpaceX, enjoys billions of dollars in government contracts; the door may have just been shut on xAI one day, enjoying the same. **More on AI:** *[Grok Is So Deeply Antisemitic That Showing It a Picture of Some Random Clouds in the Sky Prompts an Outrageously Offensive Answer]()* ## Author At Futurism, my work has often centered on bringing a sense of clarity and insight to complex topics ranging from the regulation of emerging technologies to the esoteric ideologies of Silicon Valley executives, while striving not to lose the poetic sense of awe inspired by often-obscure fields like astrophysics and quantum computing. I broke the story of CNET using AI to produce articles that turned out to be riddled with factual errors and plagiarism — a dam-breaking inflection point, as I've reported, that's inspired copycats and endless discourse while beguiling stakeholders ranging from tech giants to purveyors of spam around the web. My work at Futurism has been cited by publications including CBS News, the Los Angeles Times, Vice, Gizmodo, Engadget, the Verge, and Vanity Fair. I grew up in locales ranging from India to China, and now live in the exotic suburbs of Virginia. In my free time, I'm an avid reader of weird sci-fi literature, an aficionado of East Asian cinema, and, regrettably, a relapsed gamer. Allegedly, I’m working on a debut novel, currently untitled. ### Author social links [Bluesky]()