Elon Musk joins forces with Trump admin on xAI initiative 'for benefit of the country'

WASHINGTON, DC: The Donald Trump administration agency in charge of government real estate, procurement, and technology has signed an agreement with Elon Musk’s xAI.

Officials say the deal will streamline workflow and make AI models widely available to federal agencies at low cost.

Elon Musk hails xAI’s ‘frontier AI’ as federal deal takes effect

The General Services Administration confirmed the agreement Thursday morning, noting the contract runs through March 2027. The arrangement will allow agencies to adopt Grok 4 and Grok 4 Fast through GSA procurement channels.

"xAI has the most powerful AI compute and most capable AI models in the world," said Elon Musk, co-founder and CEO of xAI, in a statement to Fox News.

"Thanks to President Trump and his administration, xAI’s frontier AI is now unlocked for every federal agency, empowering the US Government to innovate faster and accomplish its mission more effectively than ever before," Musk added.

"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," he said.

GSA says deal marks step toward Trump’s promise of America winning the 'global AI race'

Josh Gruenbaum, commissioner of the Federal Acquisition Service at the General Services Administration, said in a press release, “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."

“We value xAI for partnering with GSA—and dedicating engineers—to accelerate the adoption of Grok to transform government operations,” Gruenbaum said.

Gruenbaum also called it "impressive" from a "milestone perspective" how "quickly we got all these frontier models onto the GSA schedules—at dollar deals or less." He added, "This one is the best value yet, and with the longest duration. That’s a big deal."

Grok AI ‘transformational’ for government operations

xAI co-founder Ross Nordeen stated, “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.”

"‘Grok for Government’ will deliver transformational AI capabilities at $0.42 per agency for 18 months, with a dedicated engineering team ensuring mission success," Nordeen added.

According to the GSA press release, the agreement is effective immediately, allowing agencies to start using Grok AI through its procurement system.

Deal follows Elon Musk’s DOGE exit and renewed contact with Donald Trump

The partnership comes after Elon Musk stepped down from the Department of Government Efficiency (DOGE) in May following a public falling out with Donald Trump.

Musk was later seen sitting next to Trump at the Arizona memorial service for Charlie Kirk, sparking talk of a renewed friendship.

"Elon came over and said hello," Trump told reporters after the event. "I thought it was nice, he came over, we had a little conversation."

A spokesperson for the General Services Administration told Fox News the agreement with xAI had been in the works for weeks.