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Anthropic, Google and xAI Win $200M Each From Pentagon AI Chief for ‘Agentic AI’

UNITED STATES, JUL 15 – The Department of Defense is investing up to $200 million each in four AI firms to enhance national security with advanced AI tools tailored for military and government applications.

  • The U.S. Department of Defense awarded up to $200 million contracts to Anthropic, Google, OpenAI, and Elon Musk's xAI on Monday to expand AI capabilities.
  • These awards respond to a White House order from April promoting AI adoption and follow President Trump's revocation of a 2023 Biden-era AI risk reduction order.
  • XAI announced a suite called Grok for Government, making its AI models, including the latest Grok 4, available to federal, state, local, and national security customers via General Services Administration schedules.
  • Doug Matty, who leads digital and AI initiatives at the Department of Defense, stated that these agreements will speed up the integration of AI technologies to enhance military capabilities and preserve the U.S. military’s competitive edge.
  • The contracts deepen ties between leading AI firms and the DoD while addressing concerns about competitive federal AI contracting and advancing agentic AI workflows for national security.
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Forbes broke the news in United States on Monday, July 14, 2025.
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