xAI offers Grok chatbot to U.S. agencies for 42 cents
Elon Musk’s artificial intelligence startup, xAI, has secured a contract with the U.S. General Services Administration (GSA) to provide its Grok chatbot to federal agencies, the government’s procurement arm confirmed Thursday.
The agreement highlights Washington’s growing push to expand the use of AI in government operations, while intensifying competition among leading AI developers for federal contracts.
Under the deal, which runs through March 2027, agencies will be able to purchase access to Grok models for 42 cents per organization per year. That price point undercuts rival OpenAI, which charges $1 per year for access to its ChatGPT service, according to the GSA.
The contract covers xAI’s Grok 4 and Grok 4 Fast models, described by the company as its most advanced reasoning systems. Alongside the software, xAI engineers will provide technical support to help agencies implement the technology. Agencies can also opt for enterprise-level subscriptions designed to meet federal security standards, which offer expanded features and higher usage thresholds.
Still, the chatbot faces scrutiny. Critics have raised concerns about Grok’s reliability, pointing to instances of factually inaccurate responses and politically skewed commentary. Advocacy groups have also flagged episodes where the system generated offensive or conspiracy-laden content, fueling broader debate about the safeguards and accountability of generative AI in sensitive government contexts.
The deal is part of the GSA’s “OneGov Strategy,” launched in April to streamline technology procurement and accelerate adoption of AI across federal agencies. Other major AI developers participating in the program include OpenAI, Meta, Google (Alphabet), and Anthropic. Earlier this week, the GSA approved Meta’s Llama model for federal use, offering it at no cost to agencies.
The addition of Grok marks another step in Washington’s effort to balance cost, innovation, and risk as federal offices explore how AI can reshape public-sector operations.
