Trump Signals Opposition to Federal Contracts for Musk’s xAI

U.S. President Donald Trump does not support awarding federal government contracts to Elon Musk’s artificial-intelligence company xAI, White House press secretary Karoline Leavitt said on 23 July. In an exchange with reporters, Leavitt replied “I don’t think so” when asked whether Trump backed the practice and added that she would discuss the matter with him, signaling the administration may seek to unwind an existing Justice Department contract with the startup. The remark introduces fresh uncertainty for xAI’s efforts to expand into government work, a market Musk has pursued to help fund large-scale computing projects. While Leavitt offered no timeline or formal policy directive, her comments suggest the administration could reassess current and future agreements between federal agencies and the year-old company.