Controversially including Elon Musk’s xAI successful a group of Defense Department contracts worthy up to $200 million was a late-in-the-game determination nether nan Trump administration, a erstwhile Pentagon worker says. The contracts had been successful nan useful for months, pinch readying making love to nan Biden administration, said Glenn Parham, a erstwhile Pentagon worker who worked connected nan early stages of nan initiative.
Before Parham took a authorities buyout successful March, he said, readying for nan contracts hadn’t included xAI. Parham was a generative artificial intelligence method lead astatine nan Pentagon’s Chief Digital and Artificial Intelligence Office and helped discuss deals and merge AI into Defense Department initiatives.
“There had not been a azygous chat pinch anyone from X aliases xAI, up until nan clip I left,” he said. “It benignant of came retired of nowhere.”
The Pentagon coiled up announcing contracts with 4 companies last week: Anthropic, Google, OpenAI and xAI. Each statement has a level of $2 cardinal and a ceiling of $200 million, pinch nan magnitude of nan payout depending connected really each business goes. (The OpenAI statement was initially announced past month.) Including Musk’s xAI raised questions among artificial intelligence experts.
Days earlier nan announcement, Grok, xAI’s chatbot, had gone connected an antisemitic tirade that nan institution struggled to control. The institution was besides launching arguable animated AI “companions” that tin beryllium sexually suggestive and violent. Musk said he merged X and xAI successful March.
In short, xAI didn’t person nan benignant of estimation aliases way grounds that typically leads to lucrative authorities contracts, moreover arsenic Musk had a agelong history of moving pinch nan government. Critics wondered whether xAI’s models were reliable capable for authorities work.
Last Tuesday, Senate Minority Leader Chuck Schumer, D-N.Y., called nan contract “wrong” and “dangerous” connected nan Senate floor, bringing up Grok’s antisemitic incident, during which it called itself “MechaHitler.” He insisted that “the Trump management must explicate really this happened, nan parameters of nan woody and why they deliberation our nationalist information isn’t worthy gathering a higher standard.”
Parham said nan program, which is billed arsenic a business betwixt nan Defense Department and nan U.S. tech companies that are connected nan frontier of artificial intelligence development, primitively focused connected much established AI firms, including OpenAI and Anthropic, which, successful summation to being older than xAI, besides person semipermanent deals pinch awesome unreality computing firms and established relationships pinch nan military.
It’s not clear what prompted Pentagon officials to adhd xAI to nan operation of contractors since March. The department’s Chief Digital and Artificial Intelligence Office, which announced nan contracts, didn’t reply written questions astir why it chose xAI, but nan Pentagon said successful a connection that nan antisemitism section wasn’t capable to disqualify it.
“Several frontier AI models person produced questionable outputs complete nan people of their ongoing improvement and nan Department will negociate risks associated pinch this emerging exertion area passim nan prototype process,” nan Defense Department told NBC News successful a connection Friday.
“These risks did not warrant excluding usage of these capabilities arsenic portion of DoD’s prototyping efforts,” it said.
The section said “frontier AI models,” by their nature, are astatine nan cutting separator and truthful connection some opportunity and risk.
xAI didn’t respond to requests for remark Friday and Monday.
Including xAI adds a wrinkle to Musk’s analyzable narration pinch nan national government. Even earlier Musk’s clip arsenic a White House advisor this twelvemonth to President Donald Trump, his business empire already had heavy ties wrong nan government, including contracts for Musk’s rocket company, SpaceX. Musk and Trump are now locked successful an on-again, off-again feud, and Musk has vowed to motorboat a third governmental party focused connected reducing nan national debt. He repeated nan vow as precocious arsenic July 6, though he doesn’t look to person taken actual nationalist steps to group it up. Trump has threatened Musk’s authorities contracts during nan dispute.
Some experts said they could spot why nan Defense Department mightiness want to see xAI arsenic a partner, contempt its flaws.
“I deliberation nan section benefits erstwhile it’s engaged pinch arsenic galore organizations arsenic possible,” said Morgan Plummer, nan argumentation head for Americans for Responsible Innovation, an defense group that mostly favors a mediate crushed on regulating AI.
Parham said that nan thought for nan $800 cardinal programme predates nan Trump management and that activity connected it began successful October aft President Joe Biden issued an executive order connected AI and nationalist security. He said that he worked connected it for astir 5 months earlier he near and that, successful all, he spent astir 3 years astatine nan Defense Department moving connected AI.
The contracts pinch nan 4 AI companies besides importantly deepen nan military’s narration pinch nan buzziest of emerging technologies. In speech for nan millions of dollars, nan subject will get usage of each company’s ample connection exemplary (LLM), which for galore users often takes nan shape of a chatbot. Experts said they expect nan subject to usage nan LLMs for a assortment of purposes, from much mundane tasks for illustration summarizing emails to much analyzable uses for illustration translating languages aliases analyzing intelligence.
Other AI projects spearheaded by nan Defense Department see Project Maven, a strategy that integrates a ample magnitude of information and information sources pinch instrumentality learning, for show and usage during conflict.
Within nan AI industry, xAI’s capabilities are hotly debated. Grok scores highly connected immoderate benchmarks of artificial intelligence, specified arsenic a benchmark named “Humanity’s Last Exam,” which consists of questions submitted by taxable matter experts. But its caller dalliance pinch neo-Nazism — and, earlier that, pinch race relations successful Musk’s autochthonal South Africa — made nan chatbot an entity of derision in nan industry and among the broader public.
“Grok is astir apt nan slightest safe of these systems. It’s doing immoderate really weird stuff,” said AI professional Gary Marcus, an emeritus professor of psychology astatine New York University.
Marcus pointed retired Grok’s ideological diatribes and xAI’s determination not to merchandise information reports that person go manufacture standards for starring AI models.
Parham said he believes xAI whitethorn request much clip than nan 3 different Pentagon contractors to person its exertion afloat disposable to nan military. He said different companies, including Anthropic and OpenAI, person already gone done a lengthy authorities reappraisal and compliance process to person their package — including their exertion programming interfaces, which coders usage to build connected apical of LLMs — authorized for use. He said that, up done March erstwhile he left, xAI hadn’t done nan same.
“It’s going to return them overmuch longer, I think, to really [get] their models rolled retired successful authorities environments,” he said. “It’s not impossible. It’s conscionable they’re far, far, far, acold down from everybody else.”
Parham said nan support process for Anthropic and OpenAI took complete a twelvemonth from paperwork submitted to authorization granted.
The Pentagon’s usage of commercialized LLMs has drawn immoderate criticism, successful portion because AI models are mostly trained connected tremendous sets of information that whitethorn see individual accusation connected nan unfastened web. Mixing that accusation pinch subject applications is excessively risky, said Sarah Myers West, a co-executive head of nan AI Now Institute, a investigation organization.
“It introduces information and privateness vulnerabilities into our captious infrastructure,” she said.
xAI is simply a comparatively young startup. Musk started it successful 2023 aft having co-founded OpenAI years earlier and past had a falling-out pinch its CEO, Sam Altman.
Some experts successful AI and defense systems said they were shocked by Grok’s caller antisemitic meltdown and wondered whether thing akin mightiness recur arsenic portion of authorities use.
“I would person immoderate safety-associated concerns based connected nan merchandise of their astir caller model,” said Josh Wallin, who researches nan intersection of AI and nan subject astatine nan Center for a New American Security, a Democratic-leaning deliberation tank.
Wallin said Grok’s antisemitism tirades show a imaginable for unpredictable aliases risky behavior, specified arsenic presenting mendacious aliases misleading accusation arsenic fact, known arsenic hallucinations.
“Let’s opportunity you’re automatically generating reports from different intelligence sources aliases you’re producing a regular study for a commander. There’d beryllium interest astir whether what you’re getting is simply a hallucination,” he said.
David Ingram
David Ingram is simply a tech newsman for NBC News.

Ben Goggin
Ben Goggin is nan lawman tech editor for NBC News.