Trump is back in business with Elon Musk, this time through a new deal between the U.S. government and xAI, the company behind the Grok AI models.
The U.S. General Services Administration (GSA) confirmed today that it signed an 18-month OneGov agreement with xAI, offering federal agencies access to Grok 4 and Grok 4 Fast for just $0.42 per agency.
That price sticks through March 2027, and it’s the longest-running OneGov AI agreement the federal government has made so far.
The deal gives agencies more than just AI access. It also includes dedicated engineering teams from xAI who will help government offices roll out Grok models across their systems.
“Widespread access to advanced AI models is essential to building the efficient, accountable government that taxpayers deserve—and to fulfilling President Trump’s promise that America will win the global AI race,” said Josh Gruenbaum, head of the Federal Acquisition Service.
Trump and Elon reconnect publicly in Glendale
This contract comes just days after Trump and Elon were spotted together for the first time in public since their high-profile fallout. The two shared a handshake and brief chat during Charlie Kirk’s funeral in Glendale, Arizona. The event pulled in tens of thousands, following the shooting of Kirk on September 10 at a Utah university.
The White House posted video of the encounter on X, the platform Elon owns. Trump’s team has been pushing hard on AI as part of his modernization agenda, and Elon previously led DOGE, Trump’s short-lived Department of Government Efficiency, which gutted a chunk of the federal workforce during Trump’s second term in office.
Elon got close to Trump after he pumped over $270 million into Trump’s campaign and showed up in several battleground states to rally support. That financial link makes the timing of this contract a lot more interesting.
Grok tools enter government at scale
Under this new setup, every federal agency now has access to xAI’s most powerful reasoning models, Grok 4 and Grok 4 Fast. The goal is to integrate these models into real workflows to help federal staff work faster and respond to problems better. “xAI has the most powerful AI compute and most capable AI models in the world,” said Elon. “Thanks to President Trump and his administration, xAI’s frontier AI is now unlocked for every federal agency.”
According to cofounder Ross Nordeen, the Grok deal is more than just software access. “Grok for Government will deliver transformational AI capabilities at $0.42 per agency for 18 months, with a dedicated engineering team ensuring mission success,” he said. xAI plans to help agencies understand and adapt AI to their specific needs across departments.
The deal also includes a roadmap to expand with FedRAMP and DoD Impact Level (IL)–aligned versions of Grok, giving agencies the chance to upgrade later for higher capacity and more features. Training sessions, security support, and long-term AI integration planning are all part of the offer.
The GSA’s OneGov program is meant to cut through red tape and get government offices quick access to competitive AI services. This fits into the White House’s AI Action Plan, which pushes for responsible and wide AI rollout across federal systems. With this deal, the administration says every federal agency will be able to modernize services like automated processing and predictive analytics, two areas central to Trump’s technology agenda.
“Access to AI tools is essential to meeting President Trump’s priorities to modernize federal government operations,” said a White House briefing. The deal takes effect immediately, with Grok access available now through regular procurement channels.
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Source: https://www.cryptopolitan.com/trump-government-contract-with-xai/
