WASHINGTON — Elon Musk’s AI venture, xAI, has reached an agreement with the Trump administration aimed at revamping and modernizing federal operations, though the two billionaires have not fully reconciled their differences.
The General Services Administration (GSA), which manages federal assets and acquires goods, services, and IT for various government bodies, has finalized a deal to utilize Grok 4 and Grok 4 Fast through March 2027, according to an announcement made by the agency on Thursday.
Discussions regarding the AI agreement had been ongoing for weeks. A White House official stated to The Post that Musk’s relationship with Trump is “separate” from the business arrangement.
While Trump listened to Musk during Charlie Kirk’s memorial service on Sunday, a source mentioned that much work remains for the two men to fully mend fences, indicating that Musk is unlikely to be seen in the Oval Office anytime soon.
Nonetheless, this partnership signifies a rare collaboration after Musk publicly criticized Trump in June regarding the deficit repercussions of the One Big Beautiful Bill Act (now known as the Working Families Tax Cut Act), which Musk condemned for undermining efforts from his Department of Government Efficiency (DOGE) team.
xAI’s agreement allows the GSA to access its advanced chatbot technology as well as for xAI’s engineers to assist government entities in integrating artificial intelligence tools into their workflows.
Fox News first reported on this arrangement.
Musk stated, “xAI offers the most powerful computing capabilities and sophisticated AI models globally,” noting that his company was established following his acquisition of X.
“With the support from President Trump and his administration, xAI can now provide frontier AI technologies to all federal agencies, enabling the U.S. government to innovate more swiftly and fulfill its mission with unprecedented efficiency,” Musk added.
“We are eager to continue our collaboration with President Trump’s administration to implement AI swiftly across the government for the nation’s benefit.”
While the total cost of the deal has not been disclosed, the GSA asserts it will gain access to Grok AI models at a cost of just $0.42 per agency.
This agreement represents the longest-term “OneGov AI arrangement” established to date.
The deal equips agencies to enhance their systems with “expanded features and increased usage limits.”
Additionally, xAI will offer training programs to facilitate the government’s adoption of its systems.
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The GSA’s mission includes centralizing procurement for shared services within the extensive federal system, managing over $110 billion in contracts for various goods and services.
The partnership with xAI aims to streamline acquisitions of AI technologies utilized by federal agencies.
“Universal access to sophisticated AI models is vital for establishing a transparent and accountable government that taxpayers deserve—fulfilling President Trump’s commitment to ensure America excels in the global AI domain,” stated Federal Acquisition Service Commissioner Josh Gruenbaum.
In July, the Trump administration introduced its AI Action Plan, aligning with a presidential executive order from January to develop strategies around emerging technologies.
Recently, the GSA has initiated rehiring efforts for hundreds of federal employees who had been laid off during previous budget cuts by the Trump administration, as reported by the Associated Press.
After concluding his role leading DOGE in May, Musk had a cordial farewell with Trump in the Oval Office, followed by a public disagreement.
Since that time, the pair has exchanged kind words on social media and even met in person at Kirk’s memorial service.
Trump later recounted to reporters, “Elon approached me and said hello. It was a pleasant interaction; we shared a brief conversation.”
A lipreader interpreted that Trump had suggested to Musk, “Let’s find a way to get back on track.”
