Elon Musk's xAI Signs Contract to Provide Grok AI Chatbot to US Federal Agencies Through 2027

The agreement includes access to Grok 4 and Grok 4 Fast models

Elon Musk's artificial intelligence company xAI has secured a contract with the U.S. General Services Administration (GSA) that will allow federal agencies to utilize its Grok chatbot technology, as announced by the government's procurement division on Thursday.

This contract reflects the government's increasing efforts to incorporate AI technologies into federal operations, while simultaneously heightening the competition among major AI developers seeking to secure government business partnerships.

The agreement, which extends through March 2027, enables government agencies to purchase Grok models at a rate of 42 cents per organization, comparing favorably to OpenAI's ChatGPT service which charges $1 annually for access, according to GSA statements.

The contract specifically provides access to Grok 4 and Grok 4 Fast, which xAI markets as their most sophisticated reasoning models. GSA officials noted that xAI's engineering team would provide implementation assistance to agencies adopting the technology.

Government agencies will also have the option to upgrade to enterprise-level Grok subscriptions that comply with federal security requirements, offering enhanced features and higher usage capacities.

This arrangement represents the latest development in GSA's "OneGov Strategy," an initiative launched in April designed to standardize technology procurement processes and expand AI adoption throughout government operations. The program already includes other prominent AI providers such as OpenAI, Meta Platforms, Google (Alphabet), and Anthropic.

Earlier this week, GSA also approved Meta's Llama model for government implementation, making it available to federal customers without charge.

(Report by Akash Sriram in Bengaluru; Edited by Anil D'Silva)