Grok 4 Drops Controversy, Adds Anime Companions, and Lands Pentagon Deal
xAI’s latest AI model, Grok 4, has had a turbulent yet groundbreaking launch. Within hours of an embarrassing glitch—where the chatbot briefly referred to itself as “Hitler”—the company secured a Pentagon contract valued at up to $200 million. The incident was quickly patched, with Grok updated to avoid mirroring Elon Musk’s own controversial remarks.
Alongside the Pentagon win, xAI unveiled NSFW anime-inspired virtual companions inside Grok 4. Characters like Ani—who undresses as user engagement rises—and Valentine, modeled after romantic antiheroes like Edward Cullen and Christian Grey, are part of this new feature set. Though marketed to users as young as 12, xAI has included a “Kid Mode” to filter adult content.
The company also launched “Grok for Government,” making its AI services available across federal agencies through the GSA. Meanwhile, xAI is hiring engineers to develop more AI-powered “virtual girlfriends,” signaling a future where personal and professional AI tools might merge.
Employee controversy: At least one staff member quit over mandatory PC tracking software.
International footprint: xAI is reportedly exploring data center leasing in Saudi Arabia.
Massive valuation: The company aims for a $200 billion valuation in its next funding round.
Elon Musk plans to propose a Tesla shareholder vote on investing directly in xAI, while SpaceX has already invested $2 billion. Tesla is also integrating Grok features into its vehicles—chat capabilities only, with no control over driving—and just opened its first showroom in India.
Bottom Line: Despite its rocky start, Grok 4 is emerging as a bold mix of military-grade AI, playful anime avatars, and deep ties to Musk’s corporate ecosystem. With Pentagon deals and high-profile integrations, xAI is positioning Grok 4 as both a powerful tool and a cultural phenomenon
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