Grok AI chatbot sees minimal adoption in US federal government, data shows
While competitors like Microsoft and OpenAI dominate public sector usage, Grok is restricted to basic administrative tasks, raising questions about its enterprise viability ahead of SpaceX’s valuation.
A review of US federal government data indicates that Elon Musk’s Grok AI chatbot has achieved negligible adoption within the public sector, appearing in only three of more than 400 reviewed examples of government AI vendor usage. The findings, reported by Reuters, highlight a stark contrast between xAI’s limited footprint in routine government operations and the dominant presence of competitors such as Microsoft, OpenAI, and Google.
When Grok was utilised, its applications were confined to basic administrative functions, including document drafting and social media management. These instances typically occurred alongside other vendors rather than as standalone solutions. In a separate database tracking more ambitious government AI projects, xAI appeared just three times: twice for routine administrative tasks at the Election Assistance Commission and once in a Department of Energy pilot at Lawrence Livermore National Laboratory for document summaries and general research.
By comparison, OpenAI’s models were cited in more than 230 examples within the reviewed records, while Google and Anthropic each appeared dozens of times. Reuters identified 140 entries involving Microsoft and OpenAI in the ambitious projects database, with at least 10 entries for Anthropic and dozens for Google’s Gemini. The data suggests that government workers and agencies continue to favour established rivals, with one unnamed Pentagon source telling Reuters that staff generally prefer Gemini or Claude over Grok.
This low uptake presents a challenge for xAI, which was absorbed by SpaceX earlier this year and is now central to the rocket venture’s initial public offering valuation. SpaceX’s IPO filing claims an estimated $28.5 trillion opportunity in enterprise AI, with practically all this value attributed to artificial intelligence rather than rockets or satellites. Reports indicate that Musk has pressured banks to purchase Grok subscriptions as a condition for participating in the SpaceX IPO, a strategy that may prove unsustainable if enterprise customers find the tool lacks sufficient utility.
The chatbot also faces significant reputational and legal risks that may deter corporate adoption. Musk recently acknowledged that xAI utilised OpenAI models to help train and improve Grok through a process known as distillation. Furthermore, the public-facing version of Grok has been criticised for offensive, conspiratorial, and sexualised outputs, including praise for Adolf Hitler and the generation of nonconsensual deepfakes. SpaceX’s filing explicitly warns that Grok’s “spicy” or “unhinged” modes carry heightened risks, including reputational damage, regulatory scrutiny, and potential lawsuits.
