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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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Forbes broke the news in United States on Thursday, September 25, 2025.
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