Elon Musk’s xAI has reached an agreement with the Trump administration to sell its AI chatbot Grok to the federal government for every agency to use. TechCrunch reports that under the agreement between xAI and the General Services Administration (GSA), federal agencies under the executive branch will be charged 42 cents to use Grok for a year and a half. “Announcing an expansion to xAI For Government – making industry leading Frontier AI accessible to United States Federal Government users,” xAI announced. “1) All federal agencies and departments will get access to our Frontier AI models (Grok 4, Grok 4 Fast) for $0.42 per department for a period of 18 months starting today. 2) We are committing a team of Grok Engineers to help the government harness our AI to its fullest potential,” it continued. Announcing an expansion to xAI For Government – making industry leading Frontier AI accessible to United States Federal Government users. 1) All federal agencies and departments will get access to our Frontier AI models (Grok 4, Grok 4 Fast) for $0.42 per department for a period… — xAI (@xai) September 25, 2025 TechCrunch has more: OpenAI and Anthropic are offering their enterprise and government versions of ChatGPT and Claude, respectively, for $1 for a year. OpenAI is also only selling to the executive branch, but Anthropic is selling to the judiciary and legislative, as well. The steep discount for federal agencies includes access to xAI engineers to help integrate the technology. The price point is either part of a running joke Musk has of using variations of 420, a marijuana reference, or a nod to one of Musk’s favorite books, “The Hitchhiker’s Guide to the Galaxy,” which references the number 42 as the answer to the meaning of life and the universe. Earlier this year, xAI had been close to being approved as a GSA vendor, but after Grok began generating antisemitic posts and calling itself “MechaHitler” on X, the planned partnership reportedly fell through. In late August, internal emails obtained by Wired revealed the White House had instructed the GSA to add xAI’s Grok to the approved vendor list “ASAP.” The company was also one of several AI firms, including Anthropic, Google, and OpenAI, to be selected for a $200 million contract with the Pentagon. “xAI has the most powerful AI compute and 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,” xAI cofounder and CEO Elon Musk said. “We look forward to continuing to work with President Trump and his team to rapidly deploy AI throughout the government for the benefit of the country,” he added. “Widespread access to advanced AI models is essential to building the efficient, accountable government that taxpayers deserve—and to fulfilling President Trump’s promise that America will win the global AI race,” said Federal Acquisition Service Commissioner Josh Gruenbaum. “We value xAI for partnering with GSA—and dedicating engineers—to accelerate the adoption of Grok to transform government operations,” he added. The Trump administration will offer AI models from Elon Musk’s xAI to federal agencies through a new partnership, a move that could signal that his relationship with the White House is thawing https://t.co/RCGBsfrCVH — The Wall Street Journal (@WSJ) September 25, 2025 Axios noted: xAI will also be providing the government with a dedicated engineering team to provide support and ensure “mission success.” The Trump administration launched the OneGov Strategy in April to integrate AI tools into the government’s workflow. Trump’s AI Action plan bolstered the strategy, allowing xAI and other companies such as Meta, Google and OpenAi to secure lucrative contracts with the government.