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XAI’s Grok sees slow uptake in US agencies

U.S. federal agencies have made limited use of Grok, the chatbot from Elon Musk’s AI startup xAI, eight months after it became available through the General Services Administration, according to 2025 AI inventory records.

The Office of Management and Budget data listed more than 400 vendor-named AI use cases.

Three involved xAI or Grok, versus 234 tied to OpenAI, 33 to Google, and 26 to Anthropic.

Separate records for more advanced projects showed Grok used only in limited tests at Lawrence Livermore National Laboratory.

The Election Assistance Commission, while Netskope said Grok usage among enterprise customers it tracks fell to 2 in 1,000 users.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

Grok saw limited government use after safety and legal problems

  • A deal that made Grok available to U.S. agencies was delayed after the chatbot produced antisemitic and pro-Hitler content 1.
  • Civil society groups said buying Grok conflicts with a White House executive order on neutral AI, after examples in which it produced conspiracy theories 2.
  • SpaceX’s initial public offering filing says the company faces investigations in the United States and other countries over claims that Grok helped create sexualized images of apparent minors 3.
  • The filing also names Grok’s “Spicy” mode as a source of regulatory and reputational risk. It says the company had set aside $530 million for possible litigation losses as of December 3.

Federal use stayed low even as defense work moved ahead

  • Federal use stayed low, though xAI secured a General Services Administration (GSA) deal that made Grok available to agencies at a nominal cost 1.
  • That left Grok open to civilian agencies through the U.S. government’s central purchasing channel, yet adoption appears limited.
  • The split matters for SpaceX’s AI unit, which includes X, the social media platform formerly known as Twitter, and xAI. The unit posted an operating loss of more than $6.3 billion last year 3.
  • Low use in inventories and tests suggests that concerns about safety, governance, and trust have held back broader public sector and enterprise adoption, even while some agencies kept pilot programs.

Recent xAI developments

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