The General Services Administration (GSA), which manages the government’s real estate holdings, procurement, and technology services, will collaborate with Elon Musk's xAI to utilize artificial intelligence models to support the agency's work.
🚨 BREAKING: Grok cleared for use across US Government Agencies.
— DogeDesigner (@cb_doge) September 25, 2025
xAI signed a new agreement to expand access to Grok to the federal government, General Services Administration announced today.
Federal agencies will be able to purchase Grok AI models for $0.42 per organization. pic.twitter.com/gxKfRxlnjZ
The announcement was made on Thursday morning that Grok 4 and Grok 5 will be provided as resources to the GSA as part of a deal between the Trump administration and xAI, which lasts until March of 2027. Musk says the partnership will drive government innovation.
The agreement starts effective immediately.
"xAI has the most powerful AI compute and most capable AI models in the world," Musk, a co-founder of xAI, told Fox News Digital. "Thanks to President Trump and his administration, xAI’s frontier AI is now unlocked for every federal agency empowering the U.S. Government to innovate faster and accomplish its mission more effectively than ever before."
"We look forward to continuing to work with President Trump and his team to rapidly deploy AI throughout the government for the benefit of the country," Musk added.
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As part of the agreement, xAI engineers will provide full support to the government to "accelerate the adoption of Grok to transform government operations."
The Federal Acquisition Service Commissioner at the General Services Administration, Josh Gruenbaum, stated in a press release that widespread access to AI models within the federal government not only helps to increase the government's efficiency but also helps fulfill President Trump's promise that the United States will win the global AI race.
"This technology could be as transformative as the internet, maybe more. Right now, we’re in the human-augmentation phase, but soon agents will be able to handle tasks more independently. That raises questions of values—what data, history, and perspectives are embedded in these systems. It’s crucial that Western, American values are front and center. We need to work with allies to ensure those values shape the technology that ends up leading the world." Gruenbaum told Fox News Digital.
"‘Grok for Government’ will deliver transformational AI capabilities at $0.42 per agency for 18 months, with a dedicated engineering team ensuring mission success," another of xAI's cofounders, Ross Nordeen, said. "We will work hand in glove with the entire government to not only deploy AI, but to deeply understand the needs of our government to make America the world leader in advanced use of AI."
Artificial intelligence development has become a central priority for President Trump, highlighted by a $500 billion agreement with major tech companies like Oracle and OpenAI on the Stargate project, an initiative to build massive data centers across the U.S., which was announced just a day into his presidency.
The Trump administration unveiled its A.I. Action Plan in July, following Trump’s directive that the federal government craft a strategy for artificial intelligence to “solidify our position as the global leader in AI and secure a brighter future for all Americans.”
The partnership with xAI is simply another step in that direction.
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