Elon Musk Signs Federal Deal To Supply Grok AI To U.S. Agencies Through 2027

Elon Musk’s xAI has landed a major government contract, with the General Services Administration announcing Thursday that federal agencies will now be able to license the Grok AI chatbot through 2027.

The deal gives agencies access to Grok 4 and Grok 4 Fast — Musk’s most advanced large language models — for just 42 cents per organization. That’s less than half the $1-per-year access rate that rival OpenAI charges for ChatGPT under a similar program.

According to the GSA, agencies that adopt Grok will also receive direct implementation support from xAI engineers. The contract includes the option to upgrade to enterprise-level Grok services that comply with federal cybersecurity protocols and offer more advanced features.

Musk’s agreement is part of the Biden-era “OneGov Strategy,” a sweeping initiative to fast-track AI adoption across government agencies while simplifying procurement. Alongside xAI, the GSA has also signed similar agreements with OpenAI, Meta, Google, and Anthropic.

Meta’s LLaMA model, approved earlier this week, will be offered to federal agencies free of charge.

Despite Grok’s low cost and high-speed rollout, critics remain wary. Advocacy groups have flagged instances of factually inaccurate responses, politically charged outputs, and inappropriate language from Grok, raising concerns about algorithmic safeguards and content moderation.

Still, the deal gives Musk a powerful foothold inside the federal tech ecosystem and ramps up competition between the biggest names in AI for government contracts. With implementation already underway, Grok is expected to be used in areas like research, logistics, and data analysis across multiple departments.