xAI secures government contract: Elon Musk’s firm offers Grok AI to agencies for 42 cents, cheaper than ChatGPT

September 26, 2025

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Elon Musk’s artificial intelligence startup, xAI, has signed a deal with the US General Services Administration (GSA) to supply its Grok chatbot to federal agencies, the government’s procurement arm confirmed on Thursday. The agreement highlights Washington’s increasing focus on integrating AI technology into public sector operations.

Affordable access for agencies

Under the contract, effective until March 2027, federal agencies can purchase Grok models for just 42 cents per organisation. This compares favourably with class=”backlink” target=”_blank” href=”https://www.livemint.com/technology/tech-news/sam-altman-launches-pulse-chatgpt-s-new-tool-for-curated-insights-who-can-use-it-how-it-works-and-limits-11758849407166.html” data-vars-page-type=”story” data-vars-link-type=”Manual”>OpenAI’s ChatGPT, which…

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