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Trump admin reunites with Elon Musk to streamline government agencies

September 25, 2025 | | Print Article

Elon Musk thanked President Donald Trump and his administration in an announcement of an artificial intelligence partnership.

The Tesla and SpaceX CEO was seen with the president at the memorial service for Charlie Kirk, the first time since a public falling out over the passage of the One Big Beautiful Act. In a statement to Fox News Digital, Musk said his xAI signed a deal with the General Services Administration (GSA), giving federal agencies access to Grok 4 and Grok 4 Fast.

“xAI has the most powerful AI compute and most capable AI models in the world,” Musk said.

“Thanks to President Trump and his administration, xAI’s frontier AI is now unlocked for every federal agency empowering the U.S. Government to innovate faster and accomplish its mission more effectively than ever before,” added the former head of Trump’s Department of Government Efficiency.

“We look forward to continuing to work with President Trump and his team to rapidly deploy AI throughout the government for the benefit of the country,” Musk said.

“Widespread access to advanced AI models is essential to building the efficient, accountable government that taxpayers deserve,” Josh Gruenbaum, the GSA’s federal acquisition service commissioner, said in a statement. “We value xAI for partnering with GSA—and dedicating engineers—to accelerate the adoption of Grok to transform government operations.”

According to Bloomberg:

Federal agencies will be able to purchase Grok AI models for $0.42 per organization, effective Thursday through March 2027, according to GSA, which is the government’s central procurement arm. The pricing represents a discount to the $1 per year that Musk’s arch-rival OpenAI is charging agencies for access to its ChatGPT product

It’s the agency’s latest deal to fast-track government adoption of technologies like AI as part of its “OneGov Strategy” launched in April.

 

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“This technology could be as transformative as the internet, maybe more,” Gruenbaum told Fox News Digital, speaking about artificial intelligence. “Right now, we’re in the human-augmentation phase, but soon agents will be able to handle tasks more independently. That raises questions of values—what data, history, and perspectives are embedded in these systems. It’s crucial that Western, American values are front and center. We need to work with allies to ensure those values shape the technology that ends up leading the world.”

xAI cofounder Ross Nordeen said in a statement that “‘Grok for Government’ will deliver transformational AI capabilities at $0.42 per agency for 18 months, with a dedicated engineering team ensuring mission success.”

“We will work hand in glove with the entire government to not only deploy AI, but to deeply understand the needs of our government to make America the world leader in advanced use of AI,” he added.

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Frieda Powers
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