Trump and Musk Strike $0.42 AI Deal, Transforming US Agencies

- Federal agencies adopt Musk’s Grok AI for an unprecedented $0.42. - The 18-month contract supports the Trump administration's AI Action Plan. On September 25, 2025, the Trump administration signed an 18-month deal giving federal agencies access to Elon Musk’s advanced Grok AI models. The U.S. General Services Administration (GSA) reached this landmark agreement under its OneGov program as part of a broader strategy to modernize operations and cement the U.S.’s dominance in the global AI race. On September 25, Cryptopolitan, Fox News, and Newsweek reported that the contract allows all federal agencies to adopt Grok AI technology for an access fee of just $0.42 per agency. The deal, which runs through March 2027, includes engineering support to integrate the AI seamlessly into government systems. As the longest-term OneGov AI contract to date, it sets a major precedent for deploying cutting-edge technology at scale within federal operations. In a statement on September 25, Federal Acquisition Service Commissioner Josh Gruenbaum hailed the agreement, stating, “Widespread access to advanced AI models is essential to building the efficient, accountable government that taxpayers deserve—and to fulfilling President Trump’s promise that America will win the global AI race.” On the same day, xAI’s co-founder Elon Musk echoed this sentiment in a statement, adding, “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.” The partnership aligns with the Trump administration’s “AI Action Plan,” a strategic framework that aims to modernize federal operations and strengthen the nation’s leadership in artificial intelligence. In addition, the deal marks a noteworthy resurgence of collaboration between Donald Trump and Elon Musk, following reports of a recent reconciliation.