GSA signs 18-month Grok deal with xAI at 42-cent price

The U.S. General Services Administration has struck a deal with Elon Musk's xAI to make the company's Grok chatbot available to federal agencies at a deeply discounted rate, the agency said Thursday. Under the agreement agencies will be able to access Grok 4 and Grok 4 Fast for 42 cents per organization for a roughly 18-month period, with xAI engineers assigned to help implement the technology across government operations, GSA officials said.

GSA described the arrangement as part of its OneGov Strategy to standardize procurement and broaden federal use of artificial intelligence. The contract covers both Grok models, which xAI promotes as advanced reasoning systems, and offers agencies the option to upgrade to enterprise subscriptions that meet federal security standards and provide expanded features and higher usage limits, the agency said. One GSA spokesperson said the pricing and term represent the lowest-and longest-running AI contract the agency has secured in a recent series of discounted technology agreements.

xAI announced Grok 4 Fast on September 19, highlighting features that include a multimodal reasoning architecture, a very large context window that the company says...