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Senator Warren Presses Pentagon on Competitive AI Contracts as Musk’s Grok Gains Traction

By  |  May 28, 2025

U.S. Senator Elizabeth Warren is calling on the Department of Defense (DoD) to promote competitive practices in artificial intelligence procurement, raising concerns over potential risks tied to expanding use of Elon Musk’s AI platform, Grok, in federal operations. The move comes as scrutiny intensifies over how emerging technologies are being integrated into national security frameworks.

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    In a letter addressed to Secretary of Defense Pete Hegseth and reviewed by Reuters, Warren emphasized the need to prevent consolidation in the AI contracting space, warning that such a trend could hinder innovation and lead to inflated costs for the government. “I seek to ensure that the DoD’s procurement decisions encourage competition and avoid consolidation that can lead to higher prices, concentration of risk, and the stifling of innovation,” Warren wrote.

    The correspondence follows a recent Reuters investigation revealing that Musk’s team at xAI, the developers of Grok, has been ramping up the tool’s use for government data analysis. This expansion has raised red flags over potential conflicts of interest and the security of sensitive personal information belonging to millions of Americans.

    Related: Senators Press Microsoft and Google Over AI Cloud Alliances Amid Antitrust Concerns

    While Warren’s letter did not name Grok or its competitors—such as OpenAI’s ChatGPT or Anthropic’s Claude—it pressed the Pentagon for clarity on its acquisition protocols, including how the department plans to avoid overreliance on a single vendor and ensure data security. One key question posed by Warren asks, “How does DoD plan to ensure government data is not used to illegally train commercially available AI algorithms?”

    Per Reuters, the Pentagon has engaged directly with Musk and his team, with Secretary Hegseth hosting them at the department’s headquarters on May 21. This marked at least the second such meeting and underscored the tech mogul’s growing influence in defense circles. Hegseth, known for his strong ties to former President Donald Trump, has been seen as an advocate for public-private partnerships in defense innovation.

    In April, the White House’s Office of Management and Budget issued guidance aimed at fostering a competitive U.S. AI sector. However, that directive notably excluded defense and national security applications, creating what some lawmakers see as a loophole in oversight.

    Warren, a senior member of the Senate Armed Services Committee, is not alone in her concerns. She and Republican Senator Eric Schmitt of Missouri recently reintroduced bipartisan legislation aimed at bolstering AI competition within the Defense Department.

    Source: Reuters