xAI Offers Grok to Federal Agencies for 42 Cents
The General Services Administration secured an 18-month deal with xAI to provide Grok AI chatbot access to federal agencies at $0.42 each, supporting the U.S. AI leadership goal.
- On Thursday, the GSA announced federal agencies will access Grok 4 and Grok 4 Fast for 18 months under its OneGov initiative, at $0.42 per organization until March 2027.
- Earlier this year, the Trump administration rolled out its AI Action Plan in July after President Donald Trump ordered a federal AI strategy in January to secure U.S. leadership.
- The deal covers Grok 4 and Grok 4 Fast, with xAI engineers assisting agencies and offering FedRAMP and DoD Impact Level upgrade paths; Grok 4 Fast, released September 19, features API access and expanded capabilities.
- Critics warned the move may fuel concerns about Elon Musk's influence, as the GSA AI safety team stated Grok 4 could be used within guidelines after testing, amid over 30 advocacy groups urging OMB to block it.
- Officials framed the deal as sharpening competition among AI vendors; Federal Acquisition Service Commissioner Josh Gruenbaum said, `Widespread access to advanced AI models is essential to building the efficient, accountable government that taxpayers deserve` and called the technology `as transformative as the internet, maybe more.
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Elon Musk’s xAI Finalizes Partnership With Trump Administration
Elon Musk’s xAI has reached an agreement with the Trump administration to sell its AI chatbot Grok to the federal government for every agency to use. TechCrunchreports that under the agreement between xAI and the General Services Administration (GSA), federal agencies under the executive branch will be charged 42 cents to use Grok for a...
Elon Musk's xAI Finalizes Partnership With Trump Administration * 100PercentFedUp.com * by Danielle
Elon Musk’s xAI has reached an agreement with the Trump administration to sell its AI chatbot Grok to the federal government for every agency to use. TechCrunch reports that under the agreement between xAI and the General Services Administration (GSA), federal agencies under the executive branch will be charged 42 cents to use Grok for a year and a half. “Announcing an expansion to xAI For Government – making industry leading Frontier AI accessi…
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Just a few months after a public falling out, it looks like the Elon Musk and Donald Trump friendship has been rekindled over a new deal with the Trump administration to bring Grok AI to the federal government. This whole thing seems to stem from the General Services Administration’s (GSA) new partnership with Elon Musk’s xAI. The GSA, which manages a lot of the government’s real estate, procurement, and tech services, announced that federal age…
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