The Trump administration is bringing Elon Musk’s AI into the federal government.
On Thursday, the General Services Administration announced a deal with Musk’s xAI. Federal agencies now have access to Grok 4 and Grok 4 Fast through March 2027.
“Elon Musk’s company has the most powerful AI compute and most capable AI models in the world,” Musk said. He credited Trump for unlocking xAI’s tech for federal use, saying it will “empower the U.S. Government to innovate faster.”
Josh Gruenbaum, commissioner at the GSA, said the move is “essential” to both Trump’s AI race with China and his promise of a more efficient government. He called xAI “world class” and said the tech could be “as transformative as the internet.”
As part of the deal, xAI engineers will work with agencies directly to accelerate adoption. Gruenbaum said the values behind the AI are crucial and stressed that “Western, American values” must guide the systems shaping the future.
The rollout is part of GSA’s OneGov Strategy. Agencies will get an “upgrade path” for compliance through the Federal Risk and Authorization Management Program. The price? Just $0.42 per agency for 18 months, backed by a dedicated engineering team.
Ross Nordeen, xAI cofounder, promised “Grok for Government” will work “hand in glove” with agencies. He said the mission is not just deploying AI but deeply understanding government needs to make America the global leader.
Gruenbaum praised the speed and scale of getting the models onto GSA schedules, calling this deal “the best value yet, and with the longest duration.”
The announcement follows Trump’s July rollout of his “AI Action Plan.” He’s already inked major tech deals, including multi-billion-dollar partnerships for the Stargate project and a $90 billion investment in Pennsylvania to become the hub of U.S. AI.
After months of tension, Musk and Trump were spotted speaking at Charlie Kirk’s memorial last weekend. “Elon came over and said hello,” Trump told reporters. “I thought it was nice, we had a little conversation.”