Trump Administration Teams Up With Elon Musk’s xAI to Accelerate Governmentwide AI, Citing ‘Benefit to the Country’

The General Services Administration struck an agreement giving federal agencies access to xAI’s Grok 4 and Grok 4 Fast through March 2027, part of the Trump administration’s push to expand artificial intelligence across government operations. Elon Musk, xAI’s chief executive, said the deal would “unlock” frontier AI for agencies, while GSA officials framed the move as central to modernizing services and bolstering U.S. competitiveness against China. The pact includes engineering support and an upgrade path to FedRAMP compliance; xAI described pricing for “Grok for Government” at “$0.42 per agency for 18 months.” The rollout complements the administration’s AI Action Plan and follows broader AI infrastructure ambitions, including data-center projects tied to major tech firms. The announcement also comes amid a public thaw between Mr. Musk and President Trump after a recent split tied to Musk’s prior government role.

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