xAI apparently lost a government contract after a tweak to Grok's prompting triggered an antisemitic meltdown where the chatbot praised Hitler and declared itself MechaHitler last month.
Despite the scandal, xAI announced that its products would soon be available for federal workers to purchase through the General Services Administration. At the time, xAI claimed this was an "important milestone" for its government business.
But Wired reviewed emails and spoke to government insiders, which revealed that GSA leaders abruptly decided to drop xAI's Grok from their contract offering. That decision to pull the plug came after leadership allegedly rushed staff to make Grok available as soon as possible following a persuasive sales meeting with xAI in June.
