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Elon Musk’s artificial intelligence company, xAI, has signed a significant agreement with the Pentagon to deploy its Grok AI model within classified U.S. military systems, according to a report by Axios citing a defense official. The move positions Grok as only the second AI model authorized for the Department of Defense’s most sensitive operations, including intelligence analysis, weapons development, and battlefield decision-making.
Until now, Anthropic’s Claude AI model had been the sole system approved for use in classified Pentagon environments. However, growing tensions between Anthropic and the Department of Defense have opened the door for new AI providers. The dispute centers on the Pentagon’s requirement that AI systems be available for “all lawful purposes.” Anthropic has resisted this condition, declining to allow Claude to be used for mass surveillance of Americans or for the creation of fully autonomous weapons.
In contrast, xAI has agreed to comply with the Pentagon’s “all lawful use” standard, clearing the path for Grok’s integration into national security infrastructure. This development could significantly expand xAI’s role in defense technology and military AI applications.
The situation remains fluid. Defense Secretary Pete Hegseth is scheduled to meet with Anthropic CEO Dario Amodei at the Pentagon, where he is expected to present a firm ultimatum. According to defense officials, the Pentagon is considering labeling Anthropic a “supply chain risk” if it does not remove existing safeguards on Claude. Such a designation could result in serious contractual and operational consequences.
It is still unclear whether Grok will fully replace Claude in classified systems or how quickly any transition might occur. As the U.S. military accelerates adoption of advanced artificial intelligence, the outcome of this dispute may reshape the competitive landscape for AI companies seeking government defense contracts and influence the future of AI policy in national security.
