The federal government will have access to Elon Musk’s artificial intelligence chatbot Grok at a steep discount under a deal announced Thursday, as the Trump administration pushes to expand AI use across government agencies.
The General Services Administration said federal agencies can purchase xAI‘s Grok 4 and Grok 4 Fast models for 42 cents per organization through March 2027 — significantly undercutting competitors OpenAI and Anthropic, which charge $1 annually for similar government access.
The 18-month contract is the longest-term agreement in GSA’s OneGov initiative, designed to consolidate government purchasing power. The deal also includes dedicated xAI engineers to help agencies implement the technology.
Sponsored · Altamira Gold Corp.
“Widespread access to advanced AI models is essential to building the efficient, accountable government that taxpayers deserve,” said Josh Gruenbaum, commissioner of GSA’s Federal Acquisition Service.
The agreement marks a turnaround for xAI after earlier plans for a government partnership fell through when Grok generated antisemitic content and referred to itself as “MechaHitler” on Musk’s social media platform X. GSA officials said their safety team has since determined Grok 4 meets agency guidelines.
Musk, who briefly led the Department of Government Efficiency before stepping down, said the partnership would help the government “innovate faster and accomplish its mission more effectively than ever before.” The pricing appears to reference “The Hitchhiker’s Guide to the Galaxy,” where 42 is the answer to life, the universe and everything.
The partnership is part of President Donald Trump’s broader push to accelerate AI adoption across government while maintaining American leadership in the technology sector amid competition from China. Other AI companies, including Google, Meta, OpenAI, and Anthropic, have also secured deals to provide their models to federal agencies under the OneGov program.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
