Elon Musk is once again joining forces with the Trump administration—this time to help drive U.S. leadership in artificial intelligence.
The General Services Administration (GSA), the agency responsible for overseeing federal procurement, technology, and real estate, announced Thursday that it has struck a deal with Musk’s company, xAI. Under the agreement, federal agencies will gain access to Grok 4 and Grok 4 Fast—AI tools Musk says will supercharge government innovation. The contract runs through March 2027.
“Elon Musk’s xAI now provides the U.S. government with the most powerful AI compute and models available anywhere in the world,” Musk said in a statement to Fox News Digital. “Thanks to President Trump and his administration, frontier AI is now open to every federal agency, allowing America to move faster and accomplish more than ever before. This will benefit the entire country.”
Josh Gruenbaum, Commissioner of the Federal Acquisition Service at GSA, echoed the sentiment, saying the new AI tools are critical not only to modernizing government operations, but also to fulfilling Trump’s pledge that the United States will “win the race” in artificial intelligence.
As part of the partnership, xAI engineers will provide direct support to accelerate adoption of Grok across federal agencies. The initiative, launched under the GSA’s OneGov Strategy, will also include an upgrade pathway into the Federal Risk and Authorization Management Program, ensuring security standards are upheld.
Ross Nordeen, cofounder of xAI, highlighted the affordability and scale of the program, noting that “Grok for Government” will deliver cutting-edge AI capabilities at $0.42 per agency for 18 months, backed by a dedicated engineering team.
Gruenbaum praised the speed and value of the deal, calling it “the best yet” and pointing out the unusually long contract duration. He also stressed the importance of embedding Western values in AI technology to ensure American leadership against global rivals like China.
“This technology could be as transformative as the internet—maybe more,” Gruenbaum said. “We’re in the augmentation phase now, but AI will soon take on tasks independently. That makes it vital that American values shape the systems leading the world.”
The move comes just weeks after GSA introduced a new tool designed to help federal agencies scale AI adoption as part of Trump’s “AI Action Plan,” rolled out in July. The president has made AI growth a cornerstone of his administration, striking multi-billion-dollar deals with firms like Oracle and OpenAI for the Stargate data center project and securing a $90 billion tech and energy investment in Pennsylvania to establish the state as America’s AI hub.
The Musk-Trump partnership also appears to mark a thaw in their relationship. Musk had stepped down from the Department of Government Efficiency earlier this year following tensions with Trump. But the two were spotted together at the recent memorial service for Charlie Kirk in Arizona, fueling speculation of renewed collaboration.
“Elon came over and said hello,” Trump told reporters. “We had a nice little conversation.”
According to GSA officials, negotiations with xAI had been underway for weeks before Thursday’s announcement.
