The Trump administration announced Thursday it has struck a partnership with Elon Musk’s artificial intelligence company xAI, a deal that gives federal agencies access to cutting-edge AI models as part of President Trump’s broader push to cement U.S. leadership in the field.
The General Services Administration (GSA), which oversees federal procurement and technology, said the agreement will make Grok 4 and Grok 4 Fast available to agencies through March 2027. The move is designed to streamline government operations while keeping costs low.
Elon Musk, co-founder and CEO of xAI, praised the arrangement in a statement. “xAI has the most powerful AI compute and most capable AI models in the world,” Musk said. “Thanks to President Trump and his administration, xAI’s frontier AI is now unlocked for every federal agency empowering the U.S. Government to innovate faster and accomplish its mission more effectively than ever before.” He added, “We look forward to continuing to work with President Trump and his team to rapidly deploy AI throughout the government for the benefit of the country.”
Josh Gruenbaum, commissioner of GSA’s Federal Acquisition Service, framed the partnership as central to Trump’s ambition to dominate the global AI race, according to Fox News. Calling the new tools “essential,” Gruenbaum said in a press release they will help the United States outpace rivals while delivering “a more streamlined, responsible government for taxpayers.”
The terms of the deal include engineering support from xAI to speed up integration of Grok into agency workflows. Gruenbaum emphasized the technology’s transformative potential. “This technology could be as transformative as the internet, maybe more,” he said. “Right now, we’re in the human-augmentation phase, but soon agents will be able to handle tasks more independently. That raises questions of values—what data, history, and perspectives are embedded in these systems. It’s crucial that Western, American values are front and center. We need to work with allies to ensure those values shape the technology that ends up leading the world.”
The agreement falls under GSA’s OneGov Strategy and includes provisions for migrating to the Federal Risk and Authorization Management Program (FedRAMP) to standardize security.
Ross Nordeen, xAI co-founder, highlighted the pricing and support structure in his statement. “‘Grok for Government’ will deliver transformational AI capabilities at $0.42 per agency for 18 months, with a dedicated engineering team ensuring mission success,” he said. “We will work hand in glove with the entire government to not only deploy AI, but to deeply understand the needs of our government to make America the world leader in advanced use of AI.”
Gruenbaum called the rollout “impressive” and a “milestone,” praising how “quickly we got all these frontier models onto the GSA schedules—at dollar deals or less.” He described it as the “best value yet, and with the longest duration. That’s a big deal.”
The Musk agreement builds on recent GSA initiatives, including a tool launched in August to accelerate government-wide AI adoption.
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