WASHINGTON - Elon Musk's AI company, xAI, has secured a $200 million contract from the US Department of Defense, despite recent backlash over its chatbot Grok. The deal aims to boost artificial intelligence capabilities across military operations.

AI wins $200 million U.S. defence contract despite backlash over Grok chatbot controversy. New “Grok for Government” tools also announced.

Riding the AI Revolution The artificial intelligence (AI) sector has been a hotbed of investor enthusiasm since OpenAI’s ChatGPT debuted in 2022, driving a surge in AI-related stocks. With analysts projecting the AI market to grow from $279 billion in 2024 to $1.

Led by entrepreneur Sam Altman, OpenAI upended the tech industry with the launch of its AI chatbot ChatGPT in late 2022. After its initial success, OpenAI has faced stiff competition from rivals including Google and startup Anthropic, and is looking for new areas of growth.