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FIRST ON FOX: The General Services Administration (GSA), which oversees the federal government’s real estate, procurement, and technology services, is partnering with Elon Musk’s xAI to improve federal workflows efficiently.
On Thursday, the GSA revealed that federal agencies will gain access to Grok 4 and Grok 4 Fast through a partnership with xAI, valid until March 2027. Musk asserts this initiative will drive innovation within the government.
“xAI has the most powerful AI compute and most capable AI models in the world,” Musk, co-founder and CEO of xAI, stated in a comment to Fox News Digital.
He added, “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.”
“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,” Musk said.
Josh Gruenbaum, commissioner of the federal acquisition service at the GSA, described the new access to AI models as an “essential” tool in fulfilling Trump’s commitment to winning the AI race and creating a government that meets taxpayer expectations.
The agreement includes full support from xAI engineers to facilitate the adoption of Grok and revolutionize government operations.
Effective immediately, federal agencies can begin utilizing Grok AI models via the GSA’s established procurement channels, according to the GSA press release.
Gruenbaum emphasized that the AI tools align with Trump’s modernization goals and the competition with China in the AI sector, noting that xAI “stood out” as a partner due to its “world-class technical talent.”
“This technology could be as transformative as the internet, maybe more,” Gruenbaum remarked about artificial intelligence. “Currently, we’re in the human-augmentation phase, but soon agents will manage tasks more independently. This raises important questions about values—what data, history, and perspectives are built into these systems. It’s vital that Western, American values are prioritized. We must collaborate with allies to ensure those values shape the leading technology globally.”
The agreement is part of the GSA’s comprehensive OneGov Strategy and will also offer agencies an “upgrade path” to the Federal Risk and Authorization Management Program, which standardizes security measures.
Ross Nordeen, co-founder of xAI, stated, “‘Grok for Government’ will provide transformative AI capabilities at $0.42 per agency for 18 months, with a dedicated engineering team ensuring mission success.”
“We will work closely with the entire government to not only deploy AI but to thoroughly understand our government’s needs to make America the leader in advanced AI applications,” Nordeen added.
Gruenbaum expressed his satisfaction with the rapid integration of these frontier models into the GSA schedules, calling it “impressive” from a “milestone perspective.” He noted, “This one is the best value yet, and with the longest duration. That’s a significant development.”
Last month, the GSA introduced a new tool designed to help federal agencies implement artificial intelligence efficiently, marking a significant advancement in the rollout of the president’s “AI Action Plan.”
The Trump administration launched its AI Action Plan in July, following Trump’s directive in January to formulate a strategy for artificial intelligence to maintain the U.S.’s position as a global leader in the field and secure a brighter future for all Americans.
Trump has prioritized U.S. growth in artificial intelligence, securing multi-billion-dollar agreements with tech companies like Oracle and OpenAI for the Stargate project, aimed at establishing major data centers in the U.S., along with a $90 billion investment deal to position Pennsylvania as a U.S. AI hub.
After leaving the Department of Government Efficiency (DOGE) in late May and experiencing a public fallout with Trump, Musk was seen engaging with Trump at Charlie Kirk’s memorial service in Arizona, hinting at a possible renewal of their relationship.
“Elon came over and said hello,” Trump told reporters post-event. “I thought it was nice; he came over, and we had a little conversation.”
A GSA spokesperson informed Fox News Digital that the agreement with xAI has been in development for several weeks.
Fox News Digital’s Emma Colton contributed to this report
