Trump administration teams with Elon Musk’s xAI to roll Grok across federal agencies

The Trump administration and Elon Musk’s xAI announced a multiyear partnership Thursday that will give federal agencies access to Grok 4 and Grok 4 Fast through the General Services Administration. The agreement, described by officials as cost‑effective and designed to streamline federal workflow, is effective immediately and runs through March 2027.

Under the deal, Grok 4 and Grok 4 Fast will be made available to federal agencies through GSA’s procurement channels. Officials said the move is intended to accelerate modernization and help the United States compete in the global AI race. The arrangement is part of the administration’s broader push to modernize government operations and maintain leadership in artificial intelligence.

"xAI has the most powerful AI compute and most capable AI models in the world," Musk said in a statement to Fox News Digital. "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." The exchange, officials said, underscores a shared aim to accelerate deployment of AI across agencies.

Josh Gruenbaum, the Federal Acquisition Service commissioner at the GSA, described Grok access as essential to fulfilling Trump’s promise that the United States will win the AI race and to building an efficient, accountable government. He said xAI would provide full support to accelerate adoption and tailor the technology to government needs. The agreement will be effective immediately, enabling agencies to begin leveraging Grok through GSA’s established procurement channels. The GSA press release notes that this is part of the OneGov Strategy to modernize government operations through scalable AI.

The deal includes an upgrade path to the Federal Risk and Authorization Management Program (FedRAMP), standardizing security measures as agencies adopt the frontier AI models. "Grok for Government" is described by xAI as delivering transformational AI capabilities at $0.42 per agency for 18 months, with a dedicated engineering team ensuring mission success. "We will work hand in glove with the entire government to not only deploy AI, but to deeply understand the needs of our government to make America the world leader in advanced use of AI," said Ross Nordeen, xAI cofounder, in a statement.

Gruenbaum called the agreement impressive from a milestone perspective for how rapidly frontier models were brought onto GSA schedules, noting the price point and duration as significant advantages. The leaders emphasized that the collaboration is designed to align technology deployment with American values and to foster responsible, secure use of AI across agencies.

Last month, the GSA announced the launch of a new tool aimed at enabling agencies to implement AI at scale as part of the president’s AI Action Plan. The Trump administration has framed AI growth as a national security and economic priority, linking it to multibillion‑dollar deals with major tech firms for data center infrastructure and to investments intended to position Pennsylvania as a U.S. AI hub. The OneGov vision seeks to standardize how government uses AI while protecting critical data and ensuring accountability across agencies.

Observers noted Musk’s recent public reunions with Trump as signals of a renewed working relationship. After completing his tenure with the Department of Government Efficiency (DOGE) in May and a public falling out with Trump, Musk was seen sitting with Trump at a memorial service in Arizona, prompting questions about how closely the two will coordinate on technology policy and procurement going forward. Trump acknowledged a brief exchange but did not elaborate on a broader partnership at the event.

A GSA spokesperson told Fox News Digital the agreement with xAI has been in the works for weeks and reflects ongoing efforts to modernize government operations through frontier AI models. The administration and GSA officials reiterated they would follow applicable procurement rules and security standards while pursuing rapid deployment of Grok across federal agencies.