• Musk’s xAI signs agreement with U.S. GSA to sell Grok to federal agencies at just USD 0.42 per organization.
• Deal runs through March 2027, marking the lowest cost and longest duration of any AI agreement under OneGov strategy.
• Move positions xAI against OpenAI, Anthropic, and Google in the U.S. government’s fast-tracked push for AI adoption.

Grok

xAI, Elon Musk’s artificial intelligence company, secured a government-wide deal to sell its chatbot Grok to U.S. federal agencies. The agreement, announced Thursday by the General Services Administration (GSA), allows agencies to access Grok for just USD 0.42 per organization. The contract runs until March 2027, making it the most affordable and longest-running AI deal under the government’s “OneGov Strategy.”

By comparison, OpenAI charges USD 1 annually for ChatGPT access, while Anthropic offers Claude at the same price. The new pricing gives xAI an immediate edge as agencies seek to adopt AI tools quickly without inflating budgets.

The OneGov program, launched in April, is designed to streamline government technology contracts. It sets standardized prices and terms while avoiding duplicate agreements across agencies. Alongside xAI, OpenAI, Google, Meta, and Anthropic have also signed deals under the initiative this year.

The deal comes as Musk’s xAI battles to establish itself against larger rivals in the global AI race. The startup recently raised over USD 10 billion, valuing it at USD 200 billion. 

Still, controversy lingers. Critics argue Grok has produced biased and offensive content in the past, raising concerns about safety in government use. Despite pushback, the Trump administration has prioritized rapid AI deployment across agencies.Bottom Line: xAI’s USD 0.42 Grok deal positions it as a low-cost option for U.S. agencies under the OneGov strategy. The agreement highlights Washington’s push for rapid AI adoption, though safety and oversight questions around government use remain unresolved.