In a sweeping step toward fusing frontier technology with federal governance, the Trump administration has announced a partnership between the General Services Administration (GSA) and Elon Musk’s xAI, making the company’s Grok 4 and Grok 4 Fast models available to every federal agency through March 2027. The move marks one of the most aggressive attempts yet to integrate artificial intelligence into the core machinery of government.
For Musk, the agreement is a triumph of both timing and influence. “xAI has the most powerful AI compute and most capable AI models in the world,” he declared, adding that under Trump’s leadership, “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.”
The Trump administration has made artificial intelligence a signature priority, framing the technology as essential to America’s security and economic dominance in an escalating global race with China.
Josh Gruenbaum, commissioner of the Federal Acquisition Service at GSA, reinforced that vision. “This technology could be as transformative as the internet, maybe more,” he told Fox News Digital. “It’s crucial that Western, American values are front and center.”
The terms are striking. Branded “Grok for Government,” the deployment is priced at just $0.42 per agency for the first 18 months, with xAI providing a dedicated engineering team to accelerate adoption.
Agencies will also receive an upgrade path to the Federal Risk and Authorization Management Program, standardizing security compliance as AI tools become embedded in daily operations. Gruenbaum called the deal “the best value yet, and with the longest duration.”
The partnership caps a summer of ambitious AI initiatives rolled out under Trump’s “AI Action Plan,” announced in July. It follows multibillion-dollar agreements with OpenAI and Oracle for the Stargate project—an effort to build massive U.S.-based data centers—and a $90 billion tech-and-energy package centered on Pennsylvania as the nation’s AI hub.
The GSA said the xAI agreement had been “in the works for weeks,” though it arrives against a backdrop of political drama. Musk had publicly split from Trump earlier this year after leaving the Department of Government Efficiency, but the two men were recently seen together at the Arizona memorial for conservative activist Charlie Kirk.
“Elon came over and said hello,” Trump remarked afterward. “I thought it was nice, he came over, we had a little conversation.”
