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U.S. Government Inks Deal with xAI for Grok Chatbot Access

The General Services Administration agreement provides federal agencies with access to Grok models for just $0.42 per organization for an 18-month term.

Olivia Sharp 1 min read 557 views
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The U.S. General Services Administration signed a deal with xAI to provide its Grok models to federal agencies for $0.42 per organization, undercutting rivals to accelerate government AI adoption.

An Aggressive Push into Government AI

The U.S. General Services Administration (GSA) announced a major procurement deal with xAI on September 25, 2025, to provide its Grok AI models to federal agencies. The agreement, part of the GSA's "OneGov" initiative, offers access to Grok 4 and Grok 4 Fast for a token price of $0.42 per organization for an 18-month term, valid until March 2027.

The deal represents a form of industrial policy, using government purchasing power to foster a competitive domestic AI market while pursuing geopolitical goals. "Widespread access to advanced AI models is essential... to fulfilling President …

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