The U.S. authorities has struck an settlement with Elon Musk’s synthetic intelligence firm xAI to supply federal businesses entry to its Grok AI fashions. The settlement offers the federal government entry for simply $0.42 per company, which is likely one of the lowest charges seen but on this wave of presidency AI procurement. Examine the $0.42-per-agency worth to rivals OpenAI and Anthropic, each of which have been providing government-focused fashions for round $1 per company. Meta, by comparability, agreed to supply AI providers at zero value.
The deal comes as a part of the Common Providers Administration (GSA)’s “OneGov” initiative, which desires to modernize how the federal authorities acquires its items and providers within the cyber area. Grok 4 and Grok 4 Quick shall be out there throughout all federal businesses instantly, they usually’ll be round for the following 18 months till the contract expires in March 2027. It additionally consists of devoted engineers from xAI to assist the federal businesses implement the AI fashions.
Complaints concerning the authorities’s adoption of Grok
The partnership is certain to be intently watched as its implementation rolls out. Civil liberties organizations have lengthy been cautious of the obvious ideological bias in Grok’s responses. Earlier this yr, the chatbot posted antisemitic content material on X, even briefly renaming itself “MechaHitler.” Such responses could be gross violations of Trump’s AI Motion Plan, which requires government-used AI to stay impartial and nonpartisan.
Lawmakers have raised their very own questions on Grok’s safety and oversight, to not point out all the opposite AI fashions like Anthropic AI and ChatGPT being introduced below the federal umbrella. The GSA has not too long ago signed related agreements with different AI corporations together with Meta, Google, Anthropic, and OpenAI, which means Grok is much from the one AI mannequin being utilized by the federal authorities immediately. The contract does present businesses with improve paths to higher-security Grok subscriptions aligned with FedRAMP and Division of Protection Influence Ranges, so time will inform how actually safe these show to be.
Suspicions about Elon Musk’s shut ties to the federal government
Based on a report by Wired, inside emails from White Home officers reveal that the GSA was urged to approve Grok “ASAP” again in late August. And as we all know, Musk and Trump had been as soon as shut allies, with Musk heading the Division of Authorities Effectivity (DOGE) after Trump’s inauguration. Their relationship soured after Musk stepped down and criticized features of the administration, resulting in a public falling out. Latest appearances of the 2 collectively — in addition to this sudden rush to carry Grok into the federal fold — have fueled hypothesis that the connection could also be on the mend.
Critics have questioned whether or not Musk’s function in shaping federal coverage, significantly by means of allies positioned in authorities businesses throughout his time at DOGE, may have given Elon Musk-owned firms a bonus over rivals. A GSA spokesperson advised TechCrunch, nevertheless, that Musk was in a roundabout way concerned in negotiating the settlement. The administration has framed the deal merely as a cost-saving measure that may enhance effectivity throughout authorities operations.
