Elon Musk Strikes Deal to Supply Grok AI to Federal Government

Elon Musk is now officially in business with the federal government supplying his Grok AI chatbot to U.S. agencies under a new contract that could reshape how Washington uses artificial intelligence. But while Musk’s xAI startup promises “faster innovation,” the move is raising serious concerns about taxpayer-funded tech experiments, political bias, and federal overreach.

The U.S. General Services Administration (GSA) confirmed on Thursday that it has signed a deal with xAI, making Grok available across government agencies through March 2027. The agreement, part of GSA’s “OneGov Strategy,” allows departments to purchase Grok 4 and Grok 4 Fast models at a steep discount just 42 cents per agency, compared to $1 per year for OpenAI’s ChatGPT.

Yes, the federal government is getting a bargain. But what exactly are taxpayers buying?

According to xAI, the Grok models are their most advanced reasoning tools. GSA says xAI engineers will even help federal workers implement the chatbot across agency operations, offering enterprise-level subscriptions with expanded security and features.

But critics are sounding the alarm and for good reason.

• Grok has been caught generating factually incorrect responses and politically skewed commentary, reinforcing growing concerns about bias in generative AI systems.

• Advocacy groups have flagged incidents where Grok spouted conspiracy theories and offensive content, raising doubts about the safety measures or lack thereof built into its core algorithm.

• Unlike OpenAI and Google, Musk’s chatbot has received minimal regulatory scrutiny, despite rapidly expanding its user base and now, its access to the federal government.

And yet, Washington is still plowing forward.

“Innovate faster” is the sales pitch. But with what oversight? And at what cost?

This deal isn’t happening in a vacuum. It’s part of a much larger, government-led effort to centralize tech procurement and push AI into every corner of the federal bureaucracy. The “OneGov Strategy,” launched in April, already includes OpenAI, Meta, Google, and Anthropic meaning Musk’s addition just tightens Big Tech’s grip on Washington.

Earlier this week, Meta’s Llama model was also approved for agency use at no cost to taxpayers. So, we’re now watching Silicon Valley’s largest players dump their AI tools into government pipelines under the guise of "innovation," all while consolidating control over public-sector information flow.

And if you think this won’t affect you, think again. These models will influence:

• How agencies respond to FOIA requests

• How veterans access benefits

• How federal law enforcement processes data

• Even how climate or economic policy is drafted

The question isn’t whether Grok can speed up government tasks. It’s whether the federal government should be handing over this kind of power to a private tech entity with unproven safety protocols, minimal transparency, and a known history of AI hallucinations.

Musk has long positioned himself as a skeptic of centralized power and woke politics. But as his company inks multi-year deals with the very government he’s often criticized, many are asking: Is Grok the solution or just another Trojan horse?

One thing’s for certain: AI is now deeply embedded in the federal machine. And the people footing the bill American taxpayers are once again the last to know how it’s being used.

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