The Trump administration department that oversees government procurement, technological services, and real estate holdings is collaborating with Elon Musk’s xAI in a move that it claims would efficiently and economically simplify federal operations.
As part of an arrangement with xAI that Musk claims would enable government to foster innovation in government, the General Services Administration said Thursday morning that federal agencies will now have access to Grok 4 and Grok 4 Fast. The agreement is effective until March 2027.
“xAI has the most powerful AI compute and most competent AI models in the world,” Fox News Digital said Musk, who is also xAI’s co-founder and CEO.
Musk said, “Every federal department now has access to xAI’s frontier AI, enabling the U.S. Government to innovate more quickly and carry out its job more successfully than ever before, thanks to President Trump and his administration.”
“We are excited to keep working with President Trump and his team to quickly implement AI throughout the government for the sake of the nation.”
According to a press release from the General Services Administration’s federal acquisition service commissioner, Josh Gruenbaum, the new, broad access to AI models is a “critical” tool for “building the efficient, accountable government that taxpayers deserve” as well as for delivering on Trump’s pledge that the US will win the AI race.
xAI engineers will provide complete assistance as part of the deal to “accelerate the deployment of Grok to alter government processes.”
For federal agencies to “begin harnessing the advantages of Grok AI models via GSA’s existing procurement channels,” the GSA news release states that the agreement between GSA and xAI will take effect immediately.
The AI tools being used are crucial to achieving Trump’s objectives of modernizing government operations and defeating China in the competition for supremacy in the AI market, Gruenbaum told Fox News Digital, adding that xAI “stood out” as a reliable partner that provides “world class technical talent.”
Regarding artificial intelligence, Gruenbaum said, “This technology might be as transformational as the internet, maybe more.” We are now in the human-augmentation stage, but agents will eventually be able to do jobs on their own. What information, background, and viewpoints are ingrained in these systems begs the issue of values. It is imperative that American, Western ideals take center stage. We must collaborate with partners to make sure that these principles influence the technology that becomes the global standard.
In addition to offering agencies a “upgrade route” to the Federal Risk and Authorization Management Program, a federal compliance program that standardizes security procedures, the agreement is the last frontier model to be announced as part of the GSA’s entire OneGov Strategy.
In a statement, xAI cofounder Ross Nordeen stated, “‘Grok for Government’ will give breakthrough AI capabilities at $0.42 per agency for 18 months, with a dedicated engineering team assuring mission accomplishment.”
“To make America the global leader in advanced use of AI, we will collaborate closely with the whole government to not just implement AI but also to fully grasp our country’s demands.”
From a “milestone standpoint,” Gruenbaum described the speed with which “we got all these frontier models into the GSA schedules—at dollar deals or less” as “amazing.”
“This one has the longest lifespan and the finest value to yet. That is significant.
Last month, GSA announced the release of a new tool that it claims would be crucial to helping federal agencies use AI effectively and at scale. This is a significant step in implementing the president’s “AI Action Plan.”
In January, Trump directed the federal government to create an artificial intelligence action plan to “solidify our position as the world leader in AI and assure a better future for all Americans.” The Trump administration released its A.I. Action Plan in July.
With the signing of multi-billion-dollar agreements with high-tech companies like Oracle and OpenAI for the Stargate project—an attempt to establish massive data centers in the United States—and a $90 billion energy and tech investment deal specifically for the state of Pennsylvania to establish it as the U.S. hub for AI, Trump has made the expansion of artificial intelligence in the United States a pillar of his administration.
Musk was spotted sitting next to and conversing with Trump at the Charlie Kirk memorial service last weekend in Arizona, indicating a potential rekindling of their friendship after Musk’s public falling out with Trump and his departure from the Department of Government Efficiency (DOGE) in late May.
Trump told reporters, “Elon came over and said hi,” after the ceremony. “He came over, and we had a little talk, which I thought was pleasant.”
The deal with xAI has been in the works for weeks, a GSA official told Fox News Digital.