Technology9/25/2025TechCrunch

Elon Musk’s xAI offers Grok to federal government for 42 cents 

Elon Musk’s xAI offers Grok to federal government for 42 cents 

Elon Musk's artificial intelligence company, xAI, has reached an agreement with the U.S. General Services Administration (GSA) to sell its AI model, Grok, to federal agencies at a discounted price of 42 cents per user over an 18-month period. This move undercuts the pricing of similar AI models offered by industry leaders like OpenAI and Anthropic. The deal aims to make Grok more accessible to government agencies, allowing them to leverage the capabilities of advanced AI technology at a lower cost. This could potentially enhance the efficiency and decision-making processes within federal institutions. The announcement comes amid the ongoing development and deployment of AI systems across various sectors, with the government seeking to stay at the forefront of these technological advancements. The agreement with xAI is seen as a strategic move to promote the adoption of AI-powered solutions within the federal government.

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