The Trump administration agency that manages the government’s real estate holdings, procurement and technology services is partnering with Elon Musk’s xAI in a move it says will cost effectively streamline federal workflow.
The General Services Administration announced on Thursday morning that federal agencies will now have access to Grok 4 and Grok 4 Fast as part of an agreement with xAI, valid until March 2027, that Musk says will make government drive innovation in government.
‘xAI has the most powerful AI compute and most capable AI models in the world,’ Musk, co-founder and CEO of xAI, said in a statement to Fox News Digital.
‘Thanks to President Trump and his administration, xAI’s 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,’ Musk added.
‘We look forward to continuing to work with President Trump and his team to rapidly deploy AI throughout the government for the benefit of the country.’
Josh Gruenbaum, federal acquisition service commissioner at the General Services Administration, explained in a press release that the new widespread access to AI models is an ‘essential’ tool not only in fulfilling Trump’s promise that the United States will win the AI race, but also for ‘building the efficient, accountable government that taxpayers deserve.’
As part of the agreement, xAI engineers will provide full support in order to ‘accelerate the adoption of Grok to transform government operations.’
The agreement between GSA and xAI will be effective immediately, allowing federal agencies to ‘begin leveraging the benefits of Grok AI models through GSA’s established procurement channels,’ the GSA press release says.
Gruenbaum told Fox News Digital the AI tools being deployed are essential to the goal of aligning with Trump’s goal of modernizing government operations and winning the race with China to dominate the AI space, adding that xAI ‘stood out’ as a strong partner that offers ‘world class technical talent.’
‘This technology could be as transformative as the internet, maybe more,’ Gruenbaum said about artificial intelligence. ‘Right now, we’re in the human-augmentation phase, but soon agents will be able to handle tasks more independently. That raises questions of values—what data, history, and perspectives are embedded in these systems. It’s crucial that Western, American values are front and center. We need to work with allies to ensure those values shape the technology that ends up leading the world.’
The agreement, the final frontier model to be unveiled as part of the GSA’s comprehensive OneGov Strategy, will also be providing agencies with an ‘upgrade path’ to the Federal Risk and Authorization Management Program, a government compliance program standardizing security measures.
‘‘Grok for Government’ will deliver transformational AI capabilities at $0.42 per agency for 18 months, with a dedicated engineering team ensuring mission success,’ xAI cofounder Ross Nordeen said in a statement.
‘We will work hand in glove with the entire government to not only deploy AI, but to deeply understand the needs of our government to make America the world leader in advanced use of AI ‘
Gruenbaum called it ‘impressive’ from a ‘milestone perspective’ how ‘quickly we got all these frontier models onto the GSA schedules—at dollar deals or less.’
‘This one is the best value yet, and with the longest duration. That’s a big deal.’
Last month, GSA announced the launch of a new tool it says will be instrumental in enabling agencies across the federal government to efficiently implement artificial intelligence at scale and take a major step forward rolling out the president’s ‘AI Action Plan.’
The Trump administration rolled out it’s A.I. Action Plan in July after Trump ordered the federal government in January to develop a plan of action for artificial intelligence in order to ‘solidify our position as the global leader in AI and secure a brighter future for all Americans.’
Trump has made U.S. artificial intelligence growth a cornerstone of his administration, such as notching multi-billion deals with high-tech firms such as Oracle and OpenAI for the Stargate project, which is an effort to launch large data centers in the U.S, as well as a $90 billion energy and tech investment deal specifically for the state of Pennsylvania to make it the U.S. hub for AI.
After completing his tenure with the Department of Government Efficiency (DOGE) in late May and a public falling out with Trump, Musk was seen sitting next to and talking with Trump at the memorial service for Charlie Kirk last weekend in Arizona, suggesting a possible rekindling of their friendship.
‘Elon came over and said hello,’ Trump said to reporters after the event. ‘I thought it was nice, he came over, we had a little conversation.’
A GSA spokesperson told Fox News Digital the agreement with xAI has been in the works for weeks.
Fox News Digital’s Emma Colton contributed to this report
