We review vendors based on rigorous testing and research, and also take into account your feedback and our affiliate commission with providers. Some providers are owned by our parent company.

Learn more

Advertising Disclosure

Pentagon Awards AI Giants Contracts Worth Up to $200 Million to Boost Military Tech

Image by Getty Images, from Unsplash

Pentagon Awards AI Giants Contracts Worth Up to $200 Million to Boost Military Tech

Reading time: 2 min

Last Updated: Jul 15, 2025

Written by Kiara Fabbri Multimedia Journalist
Fact-Checked by Sarah Frazier Content Manager

The Pentagon is investing up to $200 million in top AI firms to develop advanced tools for military operations.

In a rush? Here are the quick facts:

Recipients include Anthropic, Google, OpenAI, and Elon Musk’s xAI.
AI tools will support warfighting, intelligence, and enterprise systems.
xAI launches “Grok for Government” for federal agency use.

The U.S. Department of Defense (DoD) has granted contracts amounting to $200 million each to four major AI developers, including Anthropic, Google, OpenAI, and Elon Musk’s xAI, as first reported by Bloomberg. These contracts aim to support the military’s adoption of advanced artificial intelligence tools..

Announced on Monday by the Pentagon’s Chief Digital and Artificial Intelligence Office (CDAO), the initiative aims to fast-track the implementation of advanced AI systems in warfighting, intelligence, and business systems

“The adoption of AI is transforming the Department’s ability to support our warfighters and maintain strategic advantage over our adversaries,” said Dr. Doug Matty, the Department’s Chief Digital and AI Officer.

The contracts allow these companies to create AI agents and agentic workflows tailored to the Defense Department’s needs. The CDAO adopted a “commercial-first” strategy, leveraging technologies already available in the private sector to meet national security demands more rapidly.

xAI also announced “Grok for Government” as a specialized version of its chatbot designed for federal agencies. This follows recent backlash against earlier versions of Grok for producing offensive content.

The new product, along with OpenAI’s “OpenAI for Government” launched in June, is now available through the General Services Administration schedule, making it accessible to various government departments.

The DoD’s move not only gives AI firms a new public-sector revenue stream but also reflects growing government interest in using generative AI for real-world applications.

Kiara Fabbri

Written by: Kiara Fabbri

Hi, I’m Kiara Fabbri a Tech News Writer at WatchEverywhere. I'm a multimedia journalist with a keen interest in innovative and immersive news storytelling. Fluent in three languages—Italian, English, and Spanish—I'm deeply engaged in all facets of news reporting. I am currently undertaking a Ph.D. exploring VR applications in journalism. Following my studies in psychology (BSc) and political psychology (MSc), I embarked on a three-year journey across South America. During this time, I undertook a 4000 km solo bicycle trip from Chile to Brazil. There, I camped, cooked on the road, and volunteered in various facilities. It was during these travels that I discovered my passion for journalism. Subsequently, I pursued a Master's program in journalism innovation and enterprise. My career in journalism has seen me produce VR immersive experiences covering a range of topics. These include documenting an Anti Militaristic raid of a NATO Base, life in the Brazilian Favelas, the recent violent protest clashes in Buenos Aires and finally social projects run by Skaters in the Argentinian ghettos. In addition to my journalistic endeavours, I also practice parkour, a discipline I have cultivated over several years now. I love to make the most of this skill in my journalistic style; for example, it has enabled me to capture dynamic footage from heights during the recent violent clashes in Buenos Aires. There, I scaled heights and employed a long stick on my camera to create aerial 360° views. Through my dedication to pushing the boundaries of journalism, I am committed to amplifying voices, sparking meaningful conversations, and driving positive change in the world.

Did you like this article? Rate it!

I hated it I don't really like it It was ok Pretty good! Loved it!

We're thrilled you enjoyed our work!

As a valued reader, would you mind giving us a shoutout on Trustpilot? It's quick and means the world to us. Thank you for being amazing!

Rate us on Trustpilot

0 Voted by 0 users

Title

Your email Please enter a valid email address.

Comment

Thanks for your feedback

Share & Support

WatchEverywhere is reader-supported so we may receive a commission when you buy through links on our site. You do not pay extra for anything you buy on our site — our commission comes directly from the product owner. Some providers are owned by our parent company. Learn moreWatch Everywhere was established in 2018 as an independent site reviewing VPN services and covering privacy-related stories. Today, our team of hundreds of cybersecurity researchers, writers, and editors continues to help readers fight for their online freedom in partnership with Kape Technologies PLC, which also owns the following products: ExpressVPN, CyberGhost, Intego and Private Internet Access which may be ranked and reviewed on this website. The reviews published on Watch Everywhere are believed to be accurate as of the date of each article, and written according to our strict reviewing standards that prioritize the independent, professional and honest examination of the reviewer, taking into account the technical capabilities and qualities of the product together with its commercial value for users. The rankings and reviews we publish may also take into consideration the common ownership mentioned above, and affiliate commissions we earn for purchases through links on our website. We do not review all VPN providers and information is believed to be accurate as of the date of each article..