Elon Musk's Grok Chatbot Approved for Federal Use at 42 Cents Per Agency

Elon Musk's AI startup xAI has secured a contract with the U.S. General Services Administration (GSA) to provide its Grok chatbot to federal agencies for 42 cents per organization, a price notably lower than competitors like OpenAI's ChatGPT. This 18-month deal, part of the Trump administration's OneGov Strategy to advance AI adoption in government, includes support from xAI engineers to help agencies integrate Grok and options for upgrading to enterprise models that meet federal security standards. Despite Grok's controversial history, including producing antisemitic content and conspiracy-tinged claims, the administration is moving forward with its deployment, viewing it as a tool to enhance government operations and maintain U.S. leadership in AI. The contract highlights growing competition among AI providers like OpenAI, Anthropic, and Meta, all approved under the OneGov initiative to supply AI technologies to the government. Musk, who has publicly feuded with President Trump, expressed enthusiasm about working with the administration to rapidly deploy AI in federal operations. The deal also reflects the broader governmental push to integrate advanced AI models for improved scalability, natural language processing, and operational efficiency within federal agencies.