--- title: "The Pentagon Is Pumping $200 Million Into Elon Musk’s AI That Just Had a Nazi Meltdown" description: "Elon Musk's AI startup xAI has announced a nearly $200 million contract with the US Department of Defense to develop AI tools." date: "2025-07-15" modified: "2025-07-15" authors: - name: "Victor Tangermann" job_title: "Senior Editor" link: "https://futurism.com/authors/victor" url: "https://futurism.com/pentagon-elon-musk-xai-grok" categories: - "Artificial Intelligence" - "Elon Musk" - "Future Society" - "The Industrialists" - "xAI" tags: - "ai chatbots" - "artificial intellience" - "elon musk" - "grok" - "xai" --- # The Pentagon Is Pumping $200 Million Into Elon Musk’s AI That Just Had a Nazi Meltdown ![Elon Musk's AI startup xAI has announced a nearly $200 million contract with the US Department of Defense to develop AI tools.]() *\Image: Futurism\* Elon Musk's AI startup xAI has [announced]() a nearly $200 million contract with the US Department of Defense for developing AI tools for the military. The news comes a week after xAI's foul-mouthed Grok chatbot [had a full-blown Nazi meltdown](), referring to itself as "MechaHitler" and making outrageously bigoted claims about Black and Jewish people. In a [wordy statement]() that was thin on details, the DoD's chief digital and AI officer, Doug Matty, lauded the partnership as an important step forward for the US military. "Leveraging commercially available solutions into an integrated capabilities approach will accelerate the use of advanced AI as part of our joint mission-essential tasks in our warfighting domain as well as intelligence, business and enterprise information systems," Matty said. The announcement highlights how cozy Musk's relationship with the government has become, despite his [major falling out]() with president Donald Trump. In May, Musk's so-called Department of Government Efficiency [was heavily criticized]() for pushing the use of its Grok chatbot at the Department of Homeland Security without the required sign-offs, yet another example of the billionaire's glaring conflicts of interest. Its massive DoD contract could xAI a much-needed influx of cash. The startup has been burning through an [astonishing $1 billion per month](), forcing a seemingly desperate Musk to [siphon off funds]() from his other businesses to keep it afloat. Apart from the DoD deal, xAI also announced a "Grok for Government" feature, designed to capture the Trump administration's considerable appetite for adopting AI. It also conveniently aligns with the administration's "anti-woke" agenda. Musk has been [trying to push Grok]() to allegedly be "maximally truth seeking" in a purported effort to root out its "woke" tendencies, such as pointing out [accurate reporting]() by trustworthy news sources. Instead, Musk has pushed the chatbot to echo his personal, right-wing extremist beliefs to a near-comical degree. Over the weekend, it [emerged ]()[that Grok]() was searching Twitter and the web for Musk's personal views before making up its mind. In other words, the US military is spending hundreds of millions of dollars on a chatbot that isn't just happily furthering unhinged conspiracy theories; it's started to act like Musk's own AI shadow, making it a highly questionable choice for the Department of Defense. **More on Grok:** *[Newest Version of Grok Looks Up What Elon Musk Thinks Before Giving an Answer]()* ## Author I've been at Futurism since 2017, where my role has evolved to encompass design, writing, and increasingly editing. I've always been fascinated by space exploration and advanced transportation, which I've leaned into by interviewing luminaries in those fields while closely following the dimensions of policy and regulation that allow next-generation projects to succeed -- or, sometimes, to fail. I'm also keenly interested in the effects of generative AI on society, policies, and democratic institutions, as well as clean energy, physics and biology, and the vagaries of tech leadership. My work for Futurism has been cited by publications including Ars Technica, Gizmodo, PC Magazine, Jalopnik, Fox News, and the New York Post. I spent my childhood living in locations including Manila, the Philippines, and Geneva, Switzerland, attended McGill University, and now live in Toronto, Canada. Before Futurism I worked at AskMen and a small photography studio. In my free time, I'm an avid gardener, foodie, and craft beer lover, as well as a maker of artisanal hot pepper sauces. I have a magnificent dog named Freida. ### Author social links [Bluesky]()