Jul 23, 2025 - Technology

Trump doesn't want Musk's xAI to get government contracts, White House says

Ashley Gold

Close-up side-by-side portraits of two men; left has pale skin, blonde hair, and a serious expression; right has light skin, blue eyes, wearing a black cap with "DOGE" text. — President Donald Trump and Elon Musk. Photo: Alex Wroblewski, Allison Robbert/AFP via Getty Images

President Trump doesn't want federal government agencies to contract with former adviser-turned-foe Elon Musk's xAI, White House press secretary Karoline Leavitt said Wednesday.

Why it matters: If Trump directs his administration to cut xAI out of any federal contracting, the company would miss out on huge financial opportunities with the government.

Driving the news: Asked by a reporter: "Does President Trump support federal agencies contracting with Elon Musk's AI company?" Leavitt replied, "I don't think so, no."

"So he'd then want the DOJ to cancel the contract with Grok?" the reporter asked. Leavitt said: "I'll talk to him about it, yes."

The big picture: Under the Trump administration, tech and AI companies have been eager to land lucrative government contracts, as federal barriers to deploying their tech get lowered.

It's not clear whether Grok has any contracts with the DOJ.
However, xAI, along with other AI companies including Google, Anthropic and OpenAI, recently announced $200 million contracts with the Department of Defense.

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Trump doesn't want Musk's xAI to get government contracts, White House says

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