Elon Musk’s artificial intelligence chatbot, Grok, is reportedly being quietly used within U.S. government agencies under the direction of his Department of Government Efficiency (DOGE) team.
What Happened: The AI tool, developed by Musk’s company xAI, is being used to analyze federal data, prepare reports, and assist agency operations, including at the Department of Homeland Security (DHS), despite lacking formal approval for such use, reported Reuters, citing multiple sources familiar with the matter.
DOGE staff reportedly also promoted Grok to DHS officials over the past two months.
A spokesperson for the DHS denied claims that DOGE had pressured DHS employees to adopt Grok, an AI tool. “DOGE is here to find and fight waste, fraud and abuse,” the spokesperson told the publication.
The AI system’s deployment has sparked warnings from legal and ethics experts who argue that using Grok without proper clearance could expose protected government data and violate conflict-of-interest laws, the report added.
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“This gives the appearance that DOGE is pressuring agencies to use software to enrich Musk and xAI, and not to the benefit of the American people,” Richard Painter, ethics counsel to former President George W. Bush, told the outlet.
Privacy experts also raised concerns that federal data could leak back into xAI’s systems or be used to give Musk a competitive edge, like giving the Tesla Inc. (NASDAQ:TSLA) and SpaceX CEO access to sensitive, nonpublic federal contracting information from agencies he does business with privately, the report said.
Why It’s Important: Musk’s role with DOGE sparked debate since his appointment. While Musk has pushed for cost-cutting measures, Treasury data reportedly showed federal spending has risen by $154 billion since President Donald Trump returned to office.
Earlier this month, Musk reflected on his first 100 days at DOGE, expressing mixed feelings. He acknowledged some progress but admitted, “We haven’t been as effective as I’d like.”
In February, privacy concerns emerged when Musk’s DOGE team sought access to taxpayer data, sparking apprehensions among lawmakers.
In Tesla’s first-quarter earnings call last month, Musk revealed plans to scale back his involvement with DOGE amid growing investor concerns that his political engagement is diverting attention from Tesla’s core business.
Meanwhile, on Wednesday, the Trump administration attempted to block the release of DOGE records, appealing to the Supreme Court to prevent the disclosure of operational documents to a federal watchdog group.
Price Action: Tesla shares rose 0.15% in after-hours trading, reaching $339.86, at the time of writing, according to Benzinga Pro.
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