GSA - General Services Administration

09/25/2025 | Press release | Distributed by Public on 09/25/2025 08:31

GSA and xAI Partner on $0.42 per Agency Agreement to Accelerate Federal AI Adoption

September 25, 2025

Latest OneGov offering makes xAI's powerful Grok frontier AI models available to federal agencies at lowest price and longest duration to date; marks final frontier model to be added to GSA's suite of AI offerings

WASHINGTON - Today, the U.S. General Services Administration (GSA) announced a major OneGov agreement with xAI, making Grok AI models accessible to federal agencies for only $0.42 per organization. This unique offer is in place for 18 months-the longest term for a OneGov AI agreement to date-and is valid until March 2027. The agreement includes access to Grok 4 and Grok 4 Fast, xAI's advanced reasoning models. Additionally, xAI is committing dedicated engineers to assist participating agencies with rapidly and effectively implementing these AI tools into their workstreams.

"Widespread access to advanced AI models is essential to building the efficient, accountable government that taxpayers deserve-and to fulfilling President Trump's promise that America will win the global AI race," said Federal Acquisition Service Commissioner Josh Gruenbaum. "We value xAI for partnering with GSA-and dedicating engineers-to accelerate the adoption of Grok to transform government operations."

"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 xAI cofounder and CEO Elon Musk. "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."

"'Grok for Government' will deliver transformational AI capabilities at $0.42 per agency for 18 months, with a dedicated engineering team ensuring mission success," said xAI cofounder Ross Nordeen. "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."

The agreement also provides agencies with an upgrade path to Federal Risk and Authorization Management Program (FedRAMP) and DoD Impact Levels (IL)-aligned Grok enterprise subscriptions for expanded features and higher rate limits. To support adoption, xAI will deliver introductory training programs, custom enablement over time, and work with agencies to facilitate secure integration.

In support of the White House's vision for responsible AI innovation, as outlined in America's AI Action Plan, this agreement provides federal agencies with secure access to advanced reasoning models that will enhance mission delivery.

GSA's OneGov initiative simplifies AI procurement, offering access to frontier AI models at competitive prices to facilitate the acceleration of federal AI adoption, help save taxpayer money, and make advanced AI accessible to all government entities.

Access to AI tools is essential to meeting President Trump's priorities to modernize federal government operations, from predictive analytics in government acquisition to intelligent automation in administrative processes. This partnership will empower agencies to tackle complex challenges with greater agility and insight, ultimately leading to more effective governance and improved outcomes for the American people.

This agreement is effective immediately, and federal agencies can begin leveraging the benefits of Grok AI models through GSA's established procurement channels.

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About GSA: GSA provides centralized procurement and shared services for the federal government. GSA manages a nationwide real estate portfolio of over 360 million rentable square feet, oversees more than $110 billion in products and services via federal contracts, and delivers technology services that serve millions of people across dozens of federal agencies. GSA's mission is to deliver the best customer experience and value in real estate, acquisition, and technology services to the government and the American people. For more information, visit GSA.gov and follow us at @USGSA.

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