Musk’s xAI Lands US Government Contract

Elon Musk’s xAI has signed a contract with the U.S. General Services Administration (GSA) to provide its Grok chatbot to federal agencies through March 2027. The agreement, part of GSA’s “OneGov Strategy,” allows agencies to purchase Grok 4 and Grok 4 Fast for $0.42 per organization, less than half the rate of OpenAI’s $1 ChatGPT. xAI engineers will assist with setup, and agencies can upgrade to enterprise versions with enhanced security and higher usage limits. The deal highlights the growing government adoption of AI tools, but renews concerns over Grok’s factual accuracy and potential political bias. It places xAI among federal AI suppliers alongside OpenAI, Meta, Google, and Anthropic, as Washington accelerates integration of generative AI into operations.

Reuters, Akash Sriram – Musk’s xAI to provide Grok chatbot to US federal agencies – 25th September 2025