Federal Government Secures $0.42 Deal with xAI to Deploy Grok AI Models Across Agencies Through 2027
Summary
Federal government strikes unprecedented $0.42 deal with xAI to deploy Grok AI models across all agencies through 2027, providing immediate access to advanced Grok 4 reasoning technology with dedicated engineering support and enterprise upgrade paths.
Key Points
- GSA announces a partnership with xAI making Grok AI models available to federal agencies for $0.42 per organization through an 18-month OneGov agreement lasting until March 2027
- The deal includes access to Grok 4 and Grok 4 Fast advanced reasoning models, with xAI providing dedicated engineers to help agencies implement the AI tools into their operations
- Federal agencies gain immediate access to the frontier AI models through GSA's procurement channels, with upgrade paths to FedRAMP-aligned enterprise subscriptions and training programs included