Elon Musk’s xAI will offer Grok to federal agencies for 42 cents each, becoming the latest company to provide its artificial intelligence (AI) models to the government at a steep discount.
Agencies will be able to access Grok 4 and Grok 4 Fast, xAI’s latest models, the General Services Administration (GSA) announced Thursday. The offer will be available for the next 18 months.
The xAI agreement follows several similar deals between the government and major tech firms. OpenAI and Anthropic both announced in August that they would offer their AI models to agencies for $1. Shortly after, Google said it would provide Gemini for an even lower price, 47 cents.
“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” Musk, co-founder and CEO of the AI firm, said in a statement.
“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.
Musk, who has had a rocky relationship with the president in recent months, was seen with Trump on Sunday at a memorial service for conservative influencer Charlie Kirk. The two were spotted sitting together and speaking during the service, although Trump later downplayed the reunion.
“I thought it was nice, he came over, we had a little conversation,” Trump told reporters. “We had a very good relationship, but it was nice that he came over.”
Since leaving the White House earlier this year, Musk has reportedly devoted increasing attention to his AI firm. The tech mogul departed from the administration in late May after a four-month stint leading the Department of Government Efficiency (DOGE).
His departure became mired in public spat with Trump over the president’s “big, beautiful bill.” The two traded jabs online, with Musk eventually pledging to launch a third party.
