White House press secretary Karoline Leavitt said on Wednesday that President Donald Trump doesn’t want federal agencies to make contracts with xAI, the artificial intelligence company founded by former Trump administration official Elon Musk.

During a press conference on Wednesday, Leavitt was asked if President Donald Trump supports “federal agencies contracting with Elon Musk's AI company,” to which she responded, "I don't think so, no.”

When asked if he would want the Department of Justice to cancel its contract with “Grok,” the name of the AI chatbot that xAI operates and a possible reference to “Grok for Government,” a suite of AI tools aimed at US government customers, Leavitt said, "I'll talk to [Trump] about it, yes.”

While the Trump administration has not announced any contracts between the DOJ and xAI, the Department of Defense did recently announce $200 million contracts with four artificial intelligence companies, one of which is xAI.

“Several frontier AI models have produced questionable outputs over the course of their ongoing development and the Department will manage risks associated with this emerging technology area throughout the prototype process,” the Defense Department said in a statement to NBC News.

“These risks did not warrant excluding use of these capabilities as part of DoD’s prototyping efforts,” it added.

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