Elon Musk’s artificial intelligence company, xAI, has reached an agreement with the Pentagon to supply its Grok AI model for use in classified U.S. military systems, according to a report by Axios citing a defense official.
The agreement positions Grok as only the second artificial intelligence model authorised for the Pentagon’s most sensitive operations, including intelligence analysis, weapons development and battlefield applications. Until now, Anthropic’s Claude had been the sole AI system cleared for use within these classified environments.
Pentagon Dispute With Anthropic
The development comes amid a growing dispute between the Pentagon and Anthropic over usage safeguards. U.S. defense officials have reportedly pressed Anthropic to allow Claude to be deployed for “all lawful purposes.” However, the company has resisted removing certain restrictions, particularly those related to mass surveillance of U.S. citizens and the development of fully autonomous weapons systems.
According to the report, xAI accepted the Pentagon’s “all lawful use” requirement as part of its agreement.
High-Level Talks and Potential Ultimatum
U.S. Defense Secretary Pete Hegseth is scheduled to meet Anthropic CEO Dario Amodei at the Pentagon. A defense official indicated that Hegseth plans to present Amodei with an ultimatum regarding compliance with the department’s demands.
The Pentagon has reportedly warned that Anthropic could be designated a “supply chain risk” if it refuses to lift its safeguards. Additional penalties may also be considered.
It remains uncertain whether xAI’s Grok will fully replace Anthropic’s Claude in classified systems or how long any potential transition would take.
