Musk’s Grok Seeks Traction with Wall Street Tests

A leaked file shows SpaceX affiliate xAI’s Grok AI has minimal uptake among U.S. government projects: only 3 of roughly 400 contracts reference xAI/Grok, while models from OpenAI and others appear far more widely used. The piece highlights that despite SpaceX’s high-profile backing and the U.S. government being xAI’s largest potential customer, the sparse procurement signals weak market traction and raises questions about Grok’s commercial prospects and competitive position versus incumbent models. The report matters because government contracts often validate AI platforms, influence wider enterprise adoption, and affect funding and strategic partnerships for emerging AI companies.

SpaceX is positioning AI as the central driver of its future after folding Elon Musk’s xAI into a new SpaceXAI division and putting the Grok models at the center of its S‑1 IPO narrative. The filing claims AI represents a roughly $26.5 trillion addressable market, dwarfing most third‑party estimates, and presents satellite and launch businesses as supporting assets. But Grok has struggled to win customers compared with rivals such as OpenAI and Anthropic: consumer and enterprise surveys show tiny paid Grok uptake versus major gains for ChatGPT, Claude and Google Gemini, and Reuters found minimal US government adoption. Grok has also faced product safety scandals and feature controversies that hinder adoption.