Updated
Updated · Reuters · May 21
xAI's Grok Lands 3 of 400 U.S. AI Use Cases as Corporate Uptake Slips
Updated
Updated · Reuters · May 21

xAI's Grok Lands 3 of 400 U.S. AI Use Cases as Corporate Uptake Slips

2 articles · Updated · Reuters · May 21
  • Only 3 of more than 400 publicly identified federal AI use cases named xAI or Grok in 2025 inventory records, despite the chatbot being available to agencies for eight months.
  • OpenAI-based tools appeared in 234 cases, with Alphabet products in 33 and Anthropic in 26, underscoring officials' preference for rivals seen as more capable and secure.
  • Grok's federal footprint was mostly limited to low-level drafting and social-media tasks, while a VA bid was lost after the product reportedly failed to meet requirements and USDA staff said they were unaware of active use.
  • Corporate demand looks weak too: Netskope data showed Grok enterprise usage fell to 2 per 1,000 users from a peak of 5, with users spending less than half as much time as ChatGPT users.
  • That weak adoption challenges SpaceX's pitch that xAI can support a $1.75 trillion IPO valuation tied to a claimed $26.5 trillion market for AI services.
Is SpaceX's $1.75 trillion valuation threatened by its AI chatbot's failure to win over government and corporate users?
Why is a chatbot banned internationally for safety failures being deployed on classified U.S. military networks?