President Donald Trump and Elon Musk are seemingly back on track to rekindle their relationship, after the administration announced it would be using the billionaire’s AI chatbot Grok for the management of federal properties.
In a press release Thursday, the U.S. General Services Administration announced a major partnership with Musk’s xAI – “Grok for Government” – making the company’s AI models accessible to federal agencies for $0.42 per organization.
The “unique offer” will stretch for 18 months until March 2027 and is the longest term for such an agreement, the GSA said. The deal includes access to Grok 4 and Grok 4 Fast, xAI’s advanced reasoning models.
It comes just less than four months after the explosive bust up between Trump and Musk in June, which culminated in a fiery online exchange, with both men slinging insults at each other from their respective social media platforms, Truth Social and X.
But the pair was recently pictured chatting and shaking hands at the funeral of MAGA commentator Charlie Kirk in Arizona. Trump later did not appear particularly moved by the meeting, but told reporters it was “nice” Musk had attended.
On Thursday, any real animosity appeared to be in the past, with Musk declaring: “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,”
“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.”
xAI cofounder Ross Nordeen added “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 company will also deliver introductory training programs, custom enablement over time, and work with agencies to facilitate secure integration, the GSA press release said.
“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.”
Speaking to Fox News Digital, Gruenbaum added that xAI “stood out” as a strong partner that offers “world class technical talent” in the AI race between the U.S. and China.
“This technology could be as transformative as the internet, maybe more,” Gruenbaum said. “Right now, we’re in the human-augmentation phase, but soon agents will be able to handle tasks more independently.”
The agreement between xAI and the government is effective immediately, and federal agencies can begin leveraging the benefits of Grok AI models through GSA’s established procurement channels, the GSA said.
