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?