SpaceX/Tesla CEO Elon Musk and President Trump were inseparable on the campaign trail, with the two seeming to genuinely enjoy each other’s company. After the election, Trump put Musk in charge of the Department of Government Efficiency (DOGE), and the entrepreneur took great joy in using artificial intelligence to slash fraud and waste in the federal government.
But then they had a falling out over the One Big Beautiful Bill, and Musk has mostly stayed off the front pages and focused on his businesses since then.
However, as we reported, they appeared to have a rapprochement at Charlie Kirk’s funeral and were seen shaking hands. On Wednesday, news broke that they were back in business together:
The Trump administration agency that manages the government’s real estate holdings, procurement and technology services is partnering with Elon Musk’s xAI in a move it says will cost effectively streamline federal workflow.
The General Services Administration announced on Thursday morning that federal agencies will now have access to Grok 4 and Grok 4 Fast as part of an agreement with xAI, valid until March 2027, that Musk says will make government drive innovation in government.
"xAI has the most powerful AI compute and most capable AI models in the world," Musk, co-founder and CEO of xAI, said in a statement to Fox News Digital.
BREAKING: Elon Musk’s Grok AI cleared for use across US Government Agencies.
— DogeDesigner (@cb_doge) September 25, 2025
➤ xAI has struck an agreement to make Grok available to U.S. federal agencies via procurement through the General Services Administration (GSA), as per Bloomberg.
➤ Federal agencies will be able to… pic.twitter.com/jxVxYmwzCv
The tweet continues:
➤ Federal agencies will be able to purchase access to Grok for $0.42 per organization.
➤ This price is lower than what some competitors charge: for instance, OpenAI charges about $1 per year for federal access to ChatGPT.
➤ The move is part of a broader push to embed advanced AI tools deeper into U.S. government operations, especially in defense and national security roles via programs like “Grok for Government.”
➤ Already, the U.S. Department of Defense has awarded contracts (up to $200 million ceilings) to xAI.
Friends again? Here's What Trump and Elon Allegedly Said in Their Unifying Moment at Charlie Kirk's Memorial
Watch: Trump and Elon Reunite at Charlie Kirk Memorial in Powerful Moment of Unity
Musk sounded enthused about returning to his cost-cutting efforts and thanked Trump:
“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,” Musk added.
“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.”
I decided a quote would be a good way to sum up this story, so I asked a key player: Grok. I queried, “Grok, I'm reading today that you will be working with the Trump administration to streamline spending in the federal government. Is that true?”
Grok answered: yes indeed:
Yes, that's true—based on announcements from today, the Trump administration's General Services Administration (GSA) has signed an agreement with xAI to integrate Grok AI models (specifically Grok 4 and Grok 4 Fast) across federal agencies. The deal, dubbed "Grok for Government," aims to modernize operations, boost efficiency, and cut administrative waste through AI-driven automation, predictive analytics, and workflow streamlining. It's positioned as a step toward fulfilling Trump's priorities for a leaner, more innovative government while advancing U.S. leadership in AI.
Musk and Trump are both powerful figures working for the most part for similar goals. It’s better for the country to have them working together rather than at cross purposes. We’ll see if this deal accomplishes that while cutting out ever more bloat from the federal government.
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