SpaceX's Grok struggles with US federal agencies, casts IPO doubt
SpaceX's AI chatbot Grok just isn't catching on with US federal agencies.
Out of more than 400 government AI projects in 2025, only three involved xAI or Grok, while 234 entries involved technology based on OpenAI's models and Alphabet's Gemini or other Alphabet products got picked for 33.
Even with a super low price of just 42 cents per agency, Grok's slow adoption is making SpaceX's big $1.75 trillion IPO dreams look a bit shaky since it's counting on AI growth.
Grok reaches 0.2% of enterprise users
Grok isn't doing much better in the corporate world either: only about two out of every 1,000 enterprise users rely on it now.
Recent efforts to win over agencies like the Department of Veterans Affairs haven't worked out.
For now, Grok mostly handles small pilot projects or basic tasks and is still trailing well behind OpenAI and Alphabet in both government and business circles.