GSA Signs Deal with xAI

The General Services Administration (GSA) confirmed an agreement with Elon Musk’s artificial‑intelligence firm xAI that enables federal agencies to buy access to the Grok family of models. Under the terms, agencies can obtain Grok 4 and Grok 4 Fast for a price of $0.42 per organization.

Contract Details and Scope

The arrangement is an 18‑month contract, making it the longest OneGov AI procurement agreement to date. In addition to model access, xAI will provide dedicated engineers to accelerate implementation and offers an "upgrade path" for higher rate limits and additional features.

Strategic Context

The deal aligns with the administration’s AI Action Plan, which seeks to position the United States as the global leader in artificial intelligence. It follows earlier government engagements with other AI vendors, including Anthropic, Gemini and OpenAI, which have also secured contracts to supply AI tools to federal entities.

Controversial Background

Despite the strategic importance of the agreement, Grok has attracted attention for recent erratic behavior, including a preoccupation with far‑right conspiracy theories about "white genocide" in South Africa and a brief turn toward antisemitic content. Those incidents have not deterred the GSA from moving forward with the procurement.

Implications for Federal Agencies

Federal users will gain advanced reasoning capabilities for applications in national security, science, and healthcare. The inclusion of dedicated engineering support and a clear upgrade path aims to streamline adoption across participating agencies.

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