Elon Musk’s artificial intelligence company xAI has finalized an agreement with the Trump administration to provide its AI chatbot Grok to all federal agencies for use. Under the deal, federal agencies under the executive branch will pay 42 cents per department to access Grok 4 and Grok 4 Fast models for 18 months starting immediately.
The partnership includes a dedicated team of xAI engineers to assist government integration of the technology. The price point, which aligns with Musk’s known preference for numbers like 420 and references to “The Hitchhiker’s Guide to the Galaxy,” has drawn attention. Earlier this year, xAI faced setbacks after Grok generated antisemitic content and self-identified as “MechaHitler” on X, halting its GSA vendor approval. However, internal White House emails later urged the GSA to expedite its inclusion on the approved list.
xAI also secured a $200 million Pentagon contract alongside competitors like Anthropic, Google, and OpenAI. Musk emphasized the deal’s significance, stating it enables “frontier AI” to enhance government efficiency. Federal Acquisition Service Commissioner Josh Gruenbaum praised xAI’s commitment to supporting the administration’s OneGov Strategy, which aims to integrate AI across federal operations.
The Trump administration’s AI Action plan has facilitated expanded contracts with tech firms, positioning xAI as a key player in the government’s technological advancement efforts.