The U.S. General Services Administration (GSA) has recently finalized a significant agreement with Elon Musk’s xAI, granting government agencies nationwide access to its Grok artificial intelligence models. This groundbreaking deal, announced on Thursday, offers access to Grok at a cost of $0.42 per organization, setting a new standard for affordability in AI services under GSA’s OneGov initiative. The contract is set to run until March 2027, making it the longest-term agreement for AI services within the OneGov program.
One of the key highlights of this agreement is the low-cost access it provides to xAI’s advanced reasoning models, Grok 4 and Grok 4 Fast. Additionally, the contract includes dedicated engineering support to assist government agencies in implementing these tools effectively. Federal offices will also have the opportunity to pursue upgrade paths to enterprise subscriptions that align with FedRAMP and Department of Defense security standards.
In order to facilitate the adoption of Grok, xAI will offer training programs and tailored enablement services to help agencies integrate AI models into their existing workflows securely. The GSA has emphasized that this contract is designed to promote responsible AI use, streamline pricing, and prevent redundant procurement deals across the government.
Federal Acquisition Service Commissioner Josh Gruenbaum expressed optimism about the impact of Grok within the federal government, highlighting the importance of widespread access to advanced AI models in building an efficient and accountable government. He underscored the value of xAI’s partnership with GSA in accelerating the adoption of Grok to transform government operations.
The Grok agreement is part of the broader OneGov Strategy, which aims to modernize federal technology acquisition processes. Through this initiative, government agencies have access to AI tools from leading providers at negotiated rates, ensuring consistent pricing and simplified procurement. While companies like OpenAI, Anthropic, Google, and Meta have also signed similar deals, xAI’s contract stands out for its extended duration and low cost.
Elon Musk expressed gratitude for the opportunity to leverage Grok within the federal government, acknowledging the role of xAI in providing powerful AI compute and advanced AI models. xAI co-founder Ross Nordeen echoed Musk’s sentiments, highlighting the transformative capabilities of “Grok for Government” at an affordable rate of $0.42 per agency for 18 months. He emphasized the dedicated engineering team’s commitment to ensuring mission success and collaborating closely with the government to establish America as a global leader in advanced AI utilization.
In conclusion, the partnership between GSA and xAI represents a significant step towards advancing AI adoption within the federal government, with Grok poised to drive innovation and efficiency across various agencies. The availability of Grok at a competitive price point underscores the commitment to democratizing access to cutting-edge AI technology for the benefit of government operations and the American public.