White House suggests Trump doesn't want Elon Musk's xAI to have federal contracts

White House Press Secretary Karoline Leavitt told reporters on Wednesday that she "doesn't think" Trump supports federal agencies having contracts with Musk's AI company.Roberto Schmidt / AFP via Getty ImagesElon Musk's xAI recently announced "Grok for Government."They AI company already has a contract with the Pentagon and could contract with other agencies.A White House spokesperson suggested on Wednesday that Trump doesn't support that.President Donald Trump may be at odds with his own administration over Elon Musk's AI company.When White House Press Secretary Karoline Leavitt was asked by a reporter on Wednesday whether the president supported federal agencies contracting with Musk's xAI, she indicated that he does not."I don't think so, no," Leavitt replied.That's despite the Department of Defense recently announcing a contract of up to $200 million with the company."I'll talk to him about it," Leavitt replied when asked whether Trump would like to see existing contracts cancelled.pic.twitter.com/THeHftoiP4— bryan metzger (@metzgov) July 23, 2025 The White House did not respond to requests for clarification of Leavitt's comments. xAI did not immediately return a request for comment.xAI recently launched a suite of government-focused products called "Grok for Government," saying that other federal agencies can purchase those tools through the General Services Administration.After forging a political alliance that lasted for nearly a year, Trump and Musk's relationship blew up in early June over the tech titan's objections to the deficit impacts of the "Big Beautiful Bill."One of Musk's other major companies, SpaceX, still has contracts with the federal government despite the feud.Read the original article on Business Insider

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