42-Cent Grok: Musk Locks In U.S. Government-Wide Deal Through 2027

U.S. Agencies Can Buy Grok for USD 0.42 Under GSA Deal - What to Do Next

Grok xAI, Elon Musk's AI company, has a government-wide agreement with the U.S. General Services Administration (GSA) to offer its chatbot to federal agencies for USD 0.42 per organization. The deal runs through March 2027 and is currently the lowest-cost and longest-duration AI agreement under the government's OneGov Strategy.

Pricing undercuts existing options. OpenAI and Anthropic reportedly offer USD 1 annual access for their tools to agencies, while Google and Meta also hold agreements under the same initiative. The new price point gives xAI a clear budget edge as agencies look to scale AI with controlled spend.

Key facts

• Price: USD 0.42 per organization for Grok access.
• Term: Through March 2027 (longest under OneGov to date).
• Context: xAI has raised over USD 10 billion, with a valuation near USD 200 billion.
• Policy climate: The Trump administration has prioritized fast AI adoption across agencies.

Why this matters for federal teams

• Budget relief: The unit price lowers barriers for pilots and department-wide access.
• Speed: OneGov standardizes terms, reducing duplicative contracting and accelerating rollout.
• Choice: Agencies can compare Grok with OpenAI, Anthropic, Google, and Meta under the same umbrella.

Immediate actions for CIOs, CDOs, CAOs, and Program Leads

• Confirm your agency's path to buy under the GSA vehicle and identify the point of contact.
• Define 2-3 high-value, low-risk use cases (e.g., knowledge retrieval, drafting summaries, routing inquiries).
• Establish data boundaries: block PII, PHI, CUI, and law enforcement sensitive data unless cleared by policy.
• Kick off ATO planning and security reviews; align with privacy, records, FOIA, and Section 508 requirements.
• Stand up audit logging and human-in-the-loop review for sensitive outputs.
• Draft usage policies, prompt guidelines, and user training; require role-based access.
• Run a 60-90 day pilot with clear KPIs (quality, time saved, cost per task, incident rate).

Risk, safety, and oversight

Critics note Grok has produced biased or offensive content in the past. Government use demands strict guardrails and measurable oversight.

• Content controls: Enable moderation filters, block high-risk topics, and require human review for public-facing outputs.
• Incident response: Define escalation paths for harmful or erroneous content; track and resolve incidents.
• Evaluation: Benchmark Grok against agency datasets; test bias, safety failure modes, and output consistency.
• Transparency: Require vendor updates on model changes and policy; document model/version for each deployment.

Comparing options under OneGov

OpenAI, Anthropic, Google, and Meta also participate in OneGov. While pricing is a factor, agencies should weigh security features, content safety, FedRAMP posture, data retention, fine-tuning options, and admin controls.

• Run a bake-off with identical prompts and datasets.
• Score vendors on mission fit, model behavior, controls, and total cost of ownership.

Procurement and rollout checklist

• Acquisition: Validate OneGov terms with your contracting office; confirm scope and licensing model.
• Security: Map to agency SSP controls; plan boundary protections and network egress rules.
• Data: Set retention, redaction, and logging policies; ensure records management coverage.
• Accessibility: Verify Section 508 conformance for all end-user interfaces.
• Training: Provide prompt standards, use-case playbooks, and ethics guidance to users.
• Governance: Stand up an AI review board for approvals, KPIs, and continuous monitoring.

Timeline and planning considerations

The agreement runs through March 2027. Use year one for pilots and policy hardening, year two for scaling to priority programs, and year three to optimize, re-compete, or diversify vendors to limit lock-in.

Bottom line

At USD 0.42 per organization, Grok gives agencies a low-cost path to test and scale AI under OneGov. Move quickly but pair adoption with strong safety, privacy, and audit controls. Cost is compelling; oversight will decide long-term value.

For official program details and acquisition guidance, visit the U.S. General Services Administration. For workforce upskilling by role, see our curated training paths: AI courses by job.