Despite Elon Musk and Donald Trump’s very public spats and seemingly still ongoing feud, the White House has remained committed to supporting the former’s AI ambitions. And today, the General Services Administration (GSA) announced that it has reached an agreement with xAI that will allow it to buy Musk’s Grok AI models for $0.42 per organization.
As part of the Trump administration’s OneGov procurement initiative, the deal with xAI will allow federal agencies access to the Grok 4 and Grok 4 Fast advanced reasoning models. The 18-month contract is the longest OneGov AI procurement agreement to date. xAI announced its Grok for Government strategy earlier in the summer, which signalled its intention to provide the government with a suite of AI products, including custom models for national security, science and healthcare purposes.
As well as opening its models for government use, xAI is also providing dedicated engineers to speed up the implementation of its AI tools for participating agencies, and will offer an “upgrade path” for expanded features and higher rate limits. Such access is a crucial part of Trump’s AI Action Plan, designed to position the US as the global leader in AI. And his administration doesn’t appear to have been put off by Grok’s bizarre behavior in recent months, such as its preoccupation with far-right conspiracy theories regarding “white genocide” in South Africa, or its brief but enthusiastic turn towards antisemitism.