The U.S. Department of Defense (DoD) has announced contracts with ceilings of $200 million each for Elon Musk’s xAI and Google, aimed at advancing artificial intelligence capabilities to tackle critical national security challenges.

The partnerships will enable the DoD to develop and implement agentic AI workflows, enhancing the department’s ability to leverage cutting-edge AI technologies.

According to the DoD, these contracts will expand the department’s experience with frontier AI systems while allowing xAI and Google to gain deeper insights into addressing pressing national security needs.

“Establishing these partnerships will broaden DoD use of and experience in frontier Al capabilities and increase the ability of these companies to understand and address critical national security needs,” spokesperson from DoD told reporters.

The report comes as a surprise after the relationship between Trump and Musk fell short. Trump, during his social media feud with Musk, threatened to cancel all his contracts.