The beneficiaries, including OpenAI, Anthropic, Google,and xAI will help in integrating artificial intelligence into national security operations.

The U.S. Department of Defense on Monday awarded $200 million contracts to Elon Musk-led xAI, Alphabet Inc.’s (GOOG) (GOOGL) Google, Microsoft Corp.-backed (MSFT) OpenAI, and Amazon.com Inc.-backed (AMZN) Anthropic to help drive the agency’s adoption of artificial intelligence (AI) technologies.

The agreements will enable these firms to partner with the Pentagon to develop agentic AI workflows aimed at mission-critical areas, including cyber defense, logistics, and administrative support.

Following the announcement, Alphabet stock inched higher by 0.5% on Monday afternoon.

The DOD’s Chief Digital and Artificial Intelligence Office (CDAO) is encouraging the integration of agentic AI systems capable of performing complex tasks under human supervision into both combat and enterprise functions.

This allows the department to tap into private sector innovation while expanding its internal AI capabilities through platforms like Advana, AskSage, Maven Smart System, and Edge Data Mesh, which already embed generative models.

These partnerships are aimed at harnessing emerging AI expertise to fast-track national defense priorities.

“The adoption of AI is transforming the Department’s ability to support our warfighters and maintain strategic advantage over our adversaries,” said Chief Digital and AI Officer Doug Matty. 

“Leveraging commercially available solutions into an integrated capabilities approach will accelerate the use of advanced AI as part of our Joint mission essential tasks in our warfighting domain as well as intelligence, business, and enterprise information systems.” 

The move is expected to accelerate the Pentagon’s shift toward more capable AI tools.

In line with the DOD’s award, xAI launched Grok for Government on Monday, a tailored suite of AI tools designed specifically for U.S. government clients, enabling all federal agencies to acquire and deploy these tools.

OpenAI, too, announced a solution aimed at government use, focusing on advanced AI tools for public servants.

On Stocktwits, retail sentiment toward Alphabet remained in ‘extremely bullish’ territory amid ‘high’ message volume.

GOOGL’s Sentiment Meter and Message Volume as of 2:15 p.m. ET on July 14, 2025 | Source: Stocktwits

Alphabet stock has lost over 4% year-to-date and over 2% in the last 12 months.

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