Federal agencies will soon gain access to Elon Musk’s advanced AI models under a new deal with the General Services Administration.
According to Fox News, the Trump administration has entered an agreement with Musk’s artificial intelligence company, xAI, to make its Grok AI models available to all government agencies. The partnership, which runs through March 2027, is intended to modernize federal operations and strengthen the United States’ position in global AI competition.
The GSA announced that Grok 4 and Grok 4 Fast will be deployed immediately, with xAI engineers providing direct support to agencies. Officials say the move will enhance efficiency, reduce costs, and help advance President Trump’s stated goal of ensuring the U.S. leads the AI race against China.
In a statement, Musk described xAI as having “the most powerful AI compute and most capable AI models in the world.” He credited the Trump administration for unlocking frontier technology to accelerate government innovation.
Musk emphasized that the collaboration represents a wider effort to make agencies complete their missions more effectively. “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 said.
Ross Nordeen, a co-founder of xAI, added that the partnership was designed for scale and affordability. He said “Grok for Government” will cost just $0.42 per agency over an 18‑month span and would include full engineering support to guarantee successful integration.
Josh Gruenbaum, commissioner of GSA’s Federal Acquisition Service, called AI access “essential” for both modernizing government and staying competitive globally. He said xAI stood out as a partner due to its technical expertise and innovative approach.
Gruenbaum also highlighted the administration’s broader vision of aligning AI development with American and Western values. He warned that as AI becomes more independent, shaping its underlying biases and data sources will be critical.
He told Fox News that the rapid onboarding of frontier AI models into GSA schedules at such low cost was “impressive” and a significant milestone. The contract, he said, is the longest and most valuable secured in this area.
The agreement implements a key step in Trump’s “AI Action Plan,” which was rolled out in July following his directive earlier in the year that agencies create a comprehensive roadmap for AI. The strategy focuses heavily on securing U.S. leadership over rivals, particularly China.
Gruenbaum framed artificial intelligence as potentially more transformative than the internet. He argued that maintaining American leadership required cooperation with allies to ensure democratic values guided the global AI future.
The GSA deal is part of Trump’s broader pattern of leveraging partnerships with private-sector technology giants. Recent commitments included multi-billion-dollar arrangements with Oracle and OpenAI to advance the administration’s AI infrastructure projects.
The collaboration between Trump and Musk follows a period of tension after Musk stepped down from the Department of Government Efficiency in May. Their public reconciliation came when Musk joined the president at a memorial service in Arizona last weekend.
Trump told reporters afterward that Musk approached him with a friendly conversation, which he “thought was nice.” Observers noted the moment as evidence of renewed cooperation between the two influential leaders.
A GSA spokesperson confirmed the deal with xAI had been in the works for weeks, regardless of the timing of their personal interaction. Officials said the agreement represents the culmination of ongoing discussions about scaling AI nationally.