xAI, which is run by Tesla (NASDAQ:TSLA) CEO Elon Musk, has received approval for some of its Grok artificial intelligence models to be used by federal government employees, according to the U.S. General Services Administration.
Federal agencies can gain access to Grok 4 and Grok 4 Fast for $0.42 per organization for the next 18 months.
“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.
“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 Musk, xAI co-founder and CEO. “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.”
The deal is even cheaper than other AI models that have received approval this summer to be used by the federal government. Microsoft (MSFT)-backed OpenAI is providing access to ChatGPT Enterprise to U.S. federal agencies at a nominal cost of $1 per agency for the next year. The GSA has also added AI services from Anthropic’s Claude and Google’s (GOOG) (GOOGL) Gemini.
xAI sues OpenAI
Musk’s xAI has also filed a lawsuit against OpenAI. The civil suit alleges former xAI employees stole company secrets related to Grok and provided them to OpenAI.
“The desire to win the artificial intelligence race has driven OpenAI to cross the line of fair play,” reads the lawsuit, which was filed in the U.S. District Court for Northern California on Wednesday, Sept. 24. “OpenAI violated California and federal law by inducing former xAI employees, including Xuechen Li, Jimmy Fraiture, and a senior finance executive, to steal and share xAI’s trade secrets. By hook or by crook, OpenAI clearly will do anything when threatened by a better innovator, including plundering and misappropriating the technical advancements, source code, and business plans of xAI.”