The U.S. General Services Administration (GSA) has recently announced a groundbreaking agreement with Elon Musk’s xAI, which will provide government agencies nationwide with access to the Grok artificial intelligence models. This deal, finalized on Thursday, offers access to Grok at a remarkably low price of $0.42 per organization, setting a new standard for affordable AI services under GSA’s OneGov initiative. The contract is set to run until March 2027, representing the longest term for a OneGov AI agreement to date.
The agreement encompasses both Grok 4 and Grok 4 Fast, xAI’s advanced reasoning models, along with dedicated engineering support for agencies as they implement these tools. Federal offices will also have the opportunity to pursue upgrade paths to enterprise subscriptions that adhere to FedRAMP and Department of Defense security standards. To facilitate adoption, xAI will provide training programs and customized enablement services to assist agencies in securely integrating AI models into their existing workflows. The GSA emphasizes that this contract aims to accelerate responsible AI usage, streamline pricing, and prevent redundant procurement agreements across the government.
Federal Acquisition Service Commissioner Josh Gruenbaum has expressed optimism about the potential impact of Grok within the federal government, stating, “Widespread access to advanced AI models is essential for building the efficient, accountable government that taxpayers deserve. We value xAI for partnering with GSA and dedicating engineers to expedite the adoption of Grok, transforming government operations.”
The Grok agreement is a key component of the broader OneGov Strategy, launched earlier this year to modernize federal technology acquisition processes. Through this initiative, agencies can access AI tools from leading providers at negotiated rates, ensuring consistency in pricing and simplifying procurement. While companies like OpenAI, Anthropic, Google, and Meta have signed similar agreements, xAI’s contract stands out as the longest in duration and lowest in cost. For comparison, OpenAI is offering government agencies ChatGPT for $1 per year, as reported by Bloomberg News.
Elon Musk has expressed gratitude for the opportunity to deploy Grok within the federal government, highlighting xAI’s cutting-edge AI capabilities. Similarly, xAI co-founder Ross Nordeen has emphasized the transformative potential of “Grok for Government,” which will deliver powerful AI capabilities at an affordable price, backed by a dedicated engineering team to ensure mission success. The goal is not only to deploy AI but also to deeply understand the government’s needs, positioning America as a global leader in advanced AI utilization.