GSA inks OneGov deal with Grok AI

Grok AI, the artificial intelligence chatbot owned by Elon Musk’s xAI, will be made available to agencies through an agreement with the Government Services Administration’s OneGov strategy, an initiative to treat the federal government as a single buyer and leverage the requisite purchasing power.

Grok AI will be available to support workloads across all federal entities for $0.42 per agency. It is the longest contract term for a OneGov AI deal thus far, and will be in place and available for federal operations until March 2027. The agreement will also provide participating agencies with an upgrade path to higher FedRAMP and Department of Defense Impact Levels to approve Grok for custom workloads, according to GSA. 

Other leading firms that have inked deals with OneGov include OpenAI, Microsoft, Oracle and Amazon.

“Widespread access to advanced AI models is essential to building the efficient, accountable government that taxpayers deserve — and to fulfilling President [Donald] Trump’s promise that America will win the global AI race,” said Federal Acquisition Service Commissioner Josh Gruenbaum in a press release. “We value xAI for partnering with GSA — and dedicating engineers — to accelerate the adoption of Grok to transform government operations.”

Musk, who left government after a 130-day tenure as a special government employee and de facto head of the Department of Government Efficiency, personally weighed in on the deal. 

“xAI has the most powerful AI compute and most capable AI models in the world. 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” said Musk, xAI’s cofounder. “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.”

As part of the contract, Grok 4 and Grok 4 Fast will both be available for government workloads. xAI will also commit engineers to assist in supporting agencies’ workflows with Grok products. 

“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,” said xAI cofounder Ross Nordeen. “Through GSA’s OneGov Strategy, ‘Grok for Government’ will deliver transformational AI at $0.42 per agency for 18 months, with a dedicated engineering team ensuring mission success.”

The Trump administration has continued the push started under the previous administration to modernize federal government systems and operations, part of its broader policy plan to solidify U.S. leadership in AI innovation and adoption.

During his second term in office, Trump has worked closely with leading U.S. tech companies to foster domestic and international investments to benefit public programs and ensure U.S. tech companies’ products dominate in global markets.