The Department of Defense has announced contracts with four leading artificial intelligence companies, including Elon Musk's xAI, a week after its Grok chatbot allegedly disseminated racist rhetoric online.

The company unveiled "Grok for Government," a suite that allowed U.S. agencies to adopt its chatbot and artificial intelligence products.

Investors familiar with the matter told The Wall Street Journal that the rocket company SpaceX has agreed to invest a whopping $2 billion in xAI, the Musk-led firm behind the controversial large language model Grok. This investment makes up almost half of the $5 billion of equity that the AI company raised last month.