Elon Musk's company xAI lost out on a massive government contract after its Grok chatbot went full Nazi last month and started calling itself "MechaHitler" while spewing racist rants, Wired reports.

It's a striking revelation, if confirmed. The Trump administration has shown little restraint in its whirlwind push to stuff AI into federal agencies. It's even used AI to help carry out its purge of DEI and so-called "woke" content in government, including deleting a page dedicated to the Black baseball legend Jackie Robinson, and ordering NASA to remove references specifically targeting women.

Backing down from the Grok deal would be a rare example of the administration — which aims to ban woke AI — apparently deeming one of its AI efforts going beyond the pale.

According to Wired, xAI was

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