GSA Approves xAI’s Grok AI for Federal Use
Key Points
- GSA approves purchase of xAI’s Grok 4 and Grok 4 Fast for $0.42 per organization
- Contract spans 18 months, the longest OneGov AI procurement to date
- xAI will provide dedicated engineers and an upgrade path for higher rate limits
- Deal supports the administration’s AI Action Plan to keep the U.S. at the AI forefront
- Agreement follows earlier government contracts with Anthropic, Gemini and OpenAI
- Grok’s recent controversial content has not halted the procurement process
- Models intended for use in national security, science and healthcare projects
The General Services Administration (GSA) announced a deal that lets U.S. federal agencies purchase Elon Musk’s xAI Grok models for $0.42 per organization. The 18‑month contract, part of the OneGov procurement initiative, grants access to Grok 4 and Grok 4 Fast and includes dedicated engineers and an upgrade path. The agreement fits within the administration’s AI Action Plan and follows earlier government contracts with Anthropic, Gemini and OpenAI. While the deal underscores a push for U.S. AI leadership, it comes amid reports of Grok’s recent controversial content.
GSA Signs Deal with xAI
The General Services Administration (GSA) confirmed an agreement with Elon Musk’s artificial‑intelligence firm xAI that enables federal agencies to buy access to the Grok family of models. Under the terms, agencies can obtain Grok 4 and Grok 4 Fast for a price of $0.42 per organization.
Contract Details and Scope
The arrangement is an 18‑month contract, making it the longest OneGov AI procurement agreement to date. In addition to model access, xAI will provide dedicated engineers to accelerate implementation and offers an "upgrade path" for higher rate limits and additional features.
Strategic Context
The deal aligns with the administration’s AI Action Plan, which seeks to position the United States as the global leader in artificial intelligence. It follows earlier government engagements with other AI vendors, including Anthropic, Gemini and OpenAI, which have also secured contracts to supply AI tools to federal entities.
Controversial Background
Despite the strategic importance of the agreement, Grok has attracted attention for recent erratic behavior, including a preoccupation with far‑right conspiracy theories about "white genocide" in South Africa and a brief turn toward antisemitic content. Those incidents have not deterred the GSA from moving forward with the procurement.
Implications for Federal Agencies
Federal users will gain advanced reasoning capabilities for applications in national security, science, and healthcare. The inclusion of dedicated engineering support and a clear upgrade path aims to streamline adoption across participating agencies.