GSA announces deal with Musk’s xAI for heavily discounted access

Published September 25, 2025 10:18am ET



Elon Musk’s xAI has made a deal with President Donald Trump’s administration to employ its Grok artificial intelligence models in every federal agency at a discounted rate, days after Trump and Musk publicly shook hands for the first time since their fallout.

The General Services Administration cut a deal with xAI, which Musk is CEO of, to give each federal agency 18 months of access to the company’s advanced Grok chatbot models for $0.42. This is the lowest rate and longest-term contract the GSA has secured since it announced a series of discounts from technology companies.

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