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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GrokAI offers services to Feds for just $0.42
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Some House and Senate Democrats, along with dozens of left-leaning advocacy groups, have criticized the Trump administration's efforts to deploy Grok. They claim the chatbot produces inaccuracies, hate speech, and ideological bias, among other concerns, making it unsafe and untrustworthy for federal use. — Read the rest The post US Government will use Musk's Grok AI over concerns of "inaccuracies, hate speech, and ideological bias" appeared firs…
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