Elon Musk’s xAI reached an agreement with the US General Services Administration (GSA) to sell its AI chatbot Grok to the federal government for under a dollar, undercutting similar arrangements by rivals OpenAI and Anthropic.

The company is offering federal agencies the use of xAI for Government for 42 cents per organisation over 18 months to accelerate AI adoption across government operations. Anthropic and OpenAI are providing the use of their AI Claude and ChatGPT models to the same agencies for $1.

The agreement to offer Grok 4 and Grok 4 Fast models to federal agencies includes dedicated engineering support and training to ensure effective implementation.

The GSA announced in August Anthropic, OpenAI, Google and xAI were participating in its Multiple Award Schedule (MAS) contracting platform for use across civilian federal agencies but did not say the price xAI was charging. The company outlined the GSA terms in a blog today (25 September.)

TechCrunch reported xAI was in the early running to be a GSA-approved vendor prior to Grok generating antisemitic posts and calling itself “MechaHitler” on X. Wired reported the administration of President Donald Trump instructed the GSA to add xAI’s Grok to the approved vendor list as soon as possible.

“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 stated.

The models by the AI heavyweights come with contract terms in place, which allows the federal agencies to adopt and use them at a rapid pace.

While the companies benefit from having their AI models widely available to the federal agencies, GSA stated the partnerships support US President Donald Trump’s AI action plan, designed to solidify the US’ position as the global leader in the face of competition from countries such as China.