xAI
xAI Grok will be used by government agencies for $0.42
The US General Services Administration (GSA) announced a major OneGov agreement with xAI to use Grok AI models for government agencies for only $0.42 per organization. xAI’s services will be in effect for 18 months, and it is dubbed the longest OneGov AI agreement to date, valid through March 2027.
Specifically, federal agencies will get access to the latest Grok model family – Grok 4 and Grok 4 Fast. These two have been recognized as the most advanced AI models on various AI evaluation platforms. To ensure safe use and a seamless experience, the AI firm has committed engineering assistance for agencies to implement the required tools.
Grok is a conversational generative AI using xAI’s state-of-the-art Large Language Models (LLMs). And competes against the well-established players – ChatGPT, Claude, and Gemini in the AI race.
The latest agreement paves the way for agencies to upgrade Grok’s services, including more features and higher rate limits. The AI firm has also introduced training programs, custom enablement over time, and works with agencies to support secure integration.
GSA is responsible for procuring AI services and access to frontier AI models at competitive prices for fast AI adoption in federal agencies. xAI’s $0.42 price is a solid deal for the government against $1 offered by competitors.
“xAI has the most powerful AI compute and the most capable AI models in the world. 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,” said xAI cofounder and CEO Elon Musk.
Back in July, xAI announced Grok for Government, a suite of AI services and products for the US Government customers. It also signed a $200 million contract with the US Department of Defence. Read more about Grok for Government here.
