Musk’s Grok AI Cleared for Use Across US Government Agencies

Elon Musk’s xAI signed a new agreement to expand access to its artificial intelligence chatbot Grok to the federal government, the General Services Administration announced Thursday.

Federal agencies will be able to purchase Grok AI models for $0.42 per organization, effective Thursday through March 2027, according to GSA, which is the government’s central procurement arm. The pricing represents a discount to the $1 per year that Musk’s arch-rival OpenAI is charging agencies for access to its ChatGPT product.

It’s the agency’s latest deal to fast-track government adoption of technologies like AI as part of its “OneGov Strategy” launched in April. Meta Platforms Inc., OpenAI, Anthropic, and Google are among other major AI companies that have entered new government partnerships since the spring to make their products available to agencies.

OpenAI, Google and Anthropic Win US Approval for Civilian AI Contracts

The OneGov initiative aims to modernize government technology procurement, ensure standardized pricing and terms, and avoid duplicative deals across agencies. The effort follows calls in President Donald Trump’s so-called AI Action Plan to increase government use of AI and accelerate the technology’s development nationwide.

The xAI partnership offers Grok to federal customers at the lowest price and for the longest term of any OneGov agreement to date, according to GSA. Engineers at xAI will also be made available to assist agencies with implementation, the press release said.

“Widespread access to advanced AI models is essential to building the efficient, accountable government that taxpayers deserve,” Federal Acquisition Service Commissioner Josh Gruenbaum said in a statement. “We value xAI for partnering with GSA—and dedicating engineers—to accelerate the adoption of Grok to transform government operations.”

Musk’s venture is locked in competition with other major tech companies including OpenAI, Meta and Alphabet Inc. for an advantage in the global AI race. The company recently raised more than $10 billion in new funding that put xAI’s valuation at $200 billion, making it one of the world’s most valuable startups.

Some House and Senate Democrats, along with dozens of left-leaning advocacy groups, have criticized the Trump administration’s efforts to deploy Grok. They claim the chatbot produces inaccuracies, hate speech, and ideological bias, among other concerns, making it unsafe and untrustworthy for federal use.

To contact the reporter on this story:
Oma Seddiq in Arlington at oseddiq@bloomberg.net

To contact the editors responsible for this story:
Michael Shepard at mshepard7@bloomberg.net

John Hewitt Jones

© 2025 Bloomberg L.P. All rights reserved. Used with permission.