Pentagon AI award to xAI Copy link

The Pentagon's Chief Digital and AI Office gave xAI, Anthropic, Google and OpenAI awards of up to $200 million each to develop AI tools for defense work. The amount obligated to xAI has not been made public. SpaceX, which Musk controls, bought xAI in February 2026.

Awarded to xAI (part of SpaceX since February 2026) by U.S. Department of Defense

Tie Musk founded xAI and ran it when the award was made; SpaceX, which he controls, acquired it effective 2 February 2026.

Emil Michael, the Pentagon's chief technology officer, who oversees military AI, held xAI stock at the time and sold it at a large gain in January 2026, The Guardian reported. The Pentagon says he complies with ethics rules.

• ReportNBC News (CNBC) · Anthropic, Google, OpenAI and xAI granted up to $200 million for AI work from Defense Department · 14 Jul 2025
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• ReportThe Guardian · Pentagon official overseeing military AI sold millions worth of stock in AI firm · 01 Sep 2026
• RecordU.S. Securities and Exchange Commission · Space Exploration Technologies Corp. registration statement · 03 Jun 2026 · Archived