Market Chatter: Federal Agencies Favor OpenAI, Other Tech Giants Over xAI for AI Models

MT Newswires Live05-21 19:42

Federal agencies' consolidated inventory records from 2025 show that of the 400 publicly identified examples of AI use in government that name a specific vendor, 234 involved technology based on Microsoft-backed (MSFT) OpenAI's models, while just three involved the use of xAI or its Grok chatbot, Reuters reported Thursday.

There were 33 examples that involved Gemini or other Alphabet (GOOG, GOOGL) products and 26 examples of using Amazon-backed (AMZN) Anthropic's Claude, the report said.

xAI didn't immediately reply to a request for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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