US government can now use xAI's Grok chatbot models
Elon Musk's AI company, xAI, just scored a major deal with the US General Services Administration.
Now, federal agencies can use xAI's Grok chatbot models for only 42 cents per organization—less than half the price of OpenAI's ChatGPT.
The contract runs through March 2027 and includes the latest Grok 4 versions, with engineers from xAI providing assistance during implementation.
GSA's 'OneGov Strategy' and xAI-OpenAI legal battle
This move is part of the GSA's "OneGov Strategy" to make tech buying easier for government offices.
Meanwhile, xAI is taking OpenAI to court in California, accusing them of stealing trade secrets and targeting xAI employees to extract confidential information.
The legal battle shows just how fierce the competition is as AI tools become more common in government work.