On Thursday, September 25, the General Services Administration (GSA) of the United States announced a historic agreement with xAI, the artificial intelligence company under Musk’s umbrella, through the OneGov program. This agreement allows federal agencies to use the Grok AI model at a cost of only $0.42 per agency, effective immediately until March 2027, with a generous 18-month discount period.
This collaboration with xAI, as stated by the General Services Administration on Thursday, is expected to streamline federal workflows and establish a transparent and efficient government. This initiative was strongly advocated by Musk during his tenure as a special advisor in the Trump administration. Furthermore, leveraging artificial intelligence tools is seen as beneficial in helping the United States maintain competitiveness globally.
The agreement includes the usage of xAI’s advanced reasoning models Grok 4 and Grok 4 Fast. Additionally, xAI will provide dedicated engineers to assist in the seamless integration of these artificial intelligence tools into agency workflows.
According to reports from Fox Digital Channel, Musk, co-founder and CEO of xAI, stated, “xAI possesses the most powerful AI computational capabilities globally, and the most advanced AI models.”
Musk also mentioned, “Thanks to President Trump and his administration, the cutting-edge artificial intelligence technology of xAI is now available to all federal agencies, enabling the U.S. government to drive innovation at an unprecedented pace and carry out its missions more efficiently.”
He emphasized, “We look forward to continuing to work with President Trump’s team to rapidly deploy artificial intelligence technology within the government system for the benefit of the country.”
Not only does this agreement provide federal agencies with cost-effective AI tools, but it also paves the way for upgrades, training, and secure integration support within the organizations.
This collaboration represents the latest initiative where the Trump administration partners with tech giants. Earlier this week, Meta and Microsoft also teamed up with the General Services Administration, allowing federal employees to utilize their artificial intelligence tools. Given the announcement made by the General Services Administration in September, there might be more collaborative partnerships in the future.
During the 2024 U.S. presidential election, Musk was one of Trump’s biggest supporters, briefly entering the White House as the head of the Department of Government Efficiency (DOGE). However, their relationship soured temporarily due to the White House’s core economic bill, the “One Big Beautiful Bill Act.” Last Sunday at the memorial service of conservative youth leader Charlie Kirk, Musk approached Trump, and the two reconciled. It is believed that Musk was inspired by Kirk’s spirit and eventually let go of their differences.