The U.S. Department of Defense has announced contract awards of up to $200 million to four major artificial intelligence companies: Anthropic, Google, OpenAI, and xAI. The funding will support the development and integration of advanced AI systems across critical areas of national defense.

The initiative, managed by the DoD’s Chief Digital and Artificial Intelligence Office, is designed to fast-track the military’s adoption of next-generation AI tools. These systems are expected to play key roles in improving decision-making, strengthening cybersecurity, and enhancing operational efficiency across various mission sectors.

According to a senior official, the transformative power of AI is already reshaping how the Department supports its service members and preserves strategic superiority in an increasingly complex global environment. The contracts aim to cultivate AI agents capable of executing tasks vital to national security while aligning with ethical guidelines and strategic objectives.

Among the recipients, xAI has rolled out a new suite of government-targeted services dubbed “Grok for Government.” These AI tools are now available through the General Services Administration (GSA), providing federal agencies streamlined access to xAI’s evolving technology. The release follows efforts by the company to update and refine its AI platform, including content moderation systems, after earlier controversies.

OpenAI, another key recipient, has been deepening its involvement with government agencies since 2024, when it secured a similar $200 million defense contract. That collaboration focused on deploying AI models in partnership with a defense tech firm to support secure and mission-critical operations. More recently, OpenAI launched “OpenAI for Government,” a specialized offering for all levels of U.S. government, from local municipalities to federal departments.