<p>Elon Musk&#8217;s xAI has struck a deal with the U.S. General Services Administration (GSA) to provide the artificial intelligence startup&#8217;s Grok chatbot to federal agencies, the government&#8217;s procurement arm said on Thursday.</p>
<p>The contract underscores Washington&#8217;s push to expand the use of AI in government operations, while intensifying competition among leading developers of the booming technology for federal business.</p>
<p>The agreement, effective through March 2027, allows agencies to buy Grok models for 42 cents per organization, compared with the $1 per year OpenAI charges for access to its ChatGPT service, GSA said.</p>
<p>The contract covers Grok 4 and Grok 4 Fast, which xAI describes as its most advanced reasoning models. The agency said xAI engineers would also assist agencies with implementation.</p>
<p>Agencies will also have the option to upgrade to Grok enterprise subscriptions aligned with federal security standards, offering expanded features and higher usage limits.</p>
<p>However, critics have said Grok has generated factually wrong answers and politically skewed commentary, reflecting broader doubts over the reliability of generative AI.</p>
<p>Advocacy groups have flagged episodes where the system produced offensive language or conspiracy-tinged claims, prompting questions about the safeguards built into its algorithms.</p>
<p>The deal is the latest under GSA&#8217;s &#8220;OneGov Strategy,&#8221; launched in April to standardize technology procurement and expand government use of AI. Other suppliers under the program include OpenAI, Meta Platforms, Alphabet&#8217;s Google, and Anthropic.</p>
<p>GSA has also approved Meta&#8217;s Llama model for agency use earlier this week, making it available to federal customers at no cost.</p>
<p>(Reporting by Akash Sriram in Bengaluru; Editing by Anil D&#8217;Silva)</p>

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Elon Musk Signs Deal To Give The Government Grok To ‘Innovate Faster’