Trump administration has given the go-ahead for Elon Musk‘s artificial intelligence (AI) chatbot, Grok, to be used by all federal agencies. The approval comes with a unique offer from the General Services Administration (GSA).
GSA Approves Grok With Musk's xAI Federal Offer
The GSA has approved Grok for use by all federal agencies. This approval is accompanied by a special offer from Musk’s AI company, xAI.
The offer includes access to Grok 4 and Grok 4 Fast, xAI’s advanced reasoning models, for a period of 18 months, the longest contract for a OneGov AI agreement to date. This offer is valid until March 2027 and is available at a cost of $0.42 per organization.
xAI has also committed a team of dedicated engineers to assist federal agencies in implementing these AI tools effectively and rapidly. This move is seen as a significant step towards accelerating the adoption of AI across the federal government.
Consumer Groups Oppose Federal Use Of Musk's Grok AI
A coalition of over 30 consumer-focused groups had previously urged the Office of Management and Budget Director to block Grok from being authorized for government use, citing its non-compliance with the Trump administration’s AI Action plan, which requires federal AI systems to be objective and nonpartisan, reported Axios.
Despite these concerns, the Trump administration has given the green light for Grok to be used across all federal agencies. This decision is in line with the administration’s push to accelerate the adoption of AI within the federal government.
This development is particularly noteworthy in light of Musk’s recent optimism about the potential of his AI company, xAI. Musk had expressed his belief that xAI could achieve Artificial General Intelligence (AGI) with its latest AI model, Grok 5.
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Musk-Trump Bond In Focus Amid xAI Federal Push
Moreover, there has been speculation about Musk potentially joining the Trump administration after their brief interaction during Charlie Kirk‘s memorial service on Sunday. Betting markets have assigned an 8% probability to Musk formally aligning with the Trump administration by the end of 2025.
“Thanks to President Trump and his administration, xAI's frontier AI is now unlocked for every federal agency empowering the U.S. Government to innovate faster and accomplish its mission more effectively than ever before," stated Musk.
Trump's AI Push Follows Microsoft, Meta Federal Deals
Meanwhile, this move by the Trump administration to accelerate federal AI adoption is not the first of its kind. Earlier in September, Microsoft (NASDAQ: MSFT) secured a U.S. government cloud service deal, promising $6 billion in savings over three years.
On Monday, the GSA announced a new partnership with Meta Platforms (NASDAQ: META) to broaden federal use of Meta's open-source Llama AI models, granting all agencies streamlined access.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
