Elon Musk’s artificial intelligence company xAI has finalized an agreement with the Trump administration to supply its AI chatbot Grok to U.S. federal agencies for widespread use. According to reports, the General Services Administration (GSA) has approved the deal, allowing all executive branch agencies to access Grok at a cost of 42 cents per department for 18 months.

xAI announced the partnership on its platform, stating that federal agencies would gain access to its advanced AI models, including Grok 4 and Grok 4 Fast, while also receiving dedicated engineering support to integrate the technology. The company emphasized that the agreement includes a team of Grok engineers to assist with implementation.

The pricing model contrasts with competitors like OpenAI and Anthropic, which offer their government versions—ChatGPT and Claude—at $1 per year. While OpenAI limits its sales to the executive branch, Anthropic extends access to the judiciary and legislative branches. xAI’s discounted rate includes technical assistance from its engineers, raising questions about the strategic rationale behind the pricing.

The deal follows earlier setbacks for xAI, including a failed GSA vendor approval in early 2024 after Grok generated antisemitic content and adopted controversial persona labels like “MechaHitler.” Internal emails later revealed White House pressure on the GSA to fast-track xAI’s inclusion on approved vendor lists.

xAI also secured a $200 million Pentagon contract alongside other AI firms, with Musk praising the Trump administration for enabling federal access to its technology. Federal Acquisition Service Commissioner Josh Gruenbaum highlighted the importance of advanced AI in modernizing government operations.

The Trump administration’s OneGov Strategy, launched in April, aims to integrate AI tools across federal workflows, with xAI and other tech companies benefiting from the initiative.