A week after Elon Musk’s Grok dubbed itself “MechaHitler” and spewed antisemitic stereotypes, the US government has announced a new contract granting the chatbot’s creator, xAI, up to $200 million to modernize the Defense Department.

xAI is one of several leading AI companies to receive the award, alongside Anthropic, Google, and OpenAI. But the timing of the announcement is striking given Grok’s recent high-profile spiral, which drew congressional ire and public pushback. The use of technology, and especially AI, in the defense space has long been a controversial topic even within the tech industry, and Musk’s prior involvement in slashing federal government contracts through his work at the Department of Government Efficiency (DOGE) still raises questions about potential conflicts — though his relationship with President Donald Trump has more recently soured, and Trump’s administration has claimed Musk would step back from any potential conflicts while at DOGE.