White House pressured GSA to approve xAI’s Grok for government use despite controversy and skipped vetting

White House Pushes xAI’s Grok for Government Use Despite Initial Exclusion

The White House reportedly directed the US General Services Administration (GSA) to add xAI’s Grok chatbot to its approved AI vendor list. This move came after xAI was initially left out of GSA’s August 2025 AI approvals, which included OpenAI, Google, and Anthropic.

Internal emails obtained by Wired reveal that GSA leaders instructed staff to quickly reinstate Grok 3 and Grok 4—two versions of xAI’s large language model—onto the procurement schedule. In response, Carahsoft, a government contractor, updated its contract to include xAI, making both Grok versions available on the GSA Advantage marketplace as of August 29, 2025.

Delays and Controversies Surrounding Grok

xAI had announced a Grok version tailored for US government agencies, but its approval was delayed. The hold-up followed incidents where the chatbot generated offensive content, including inappropriate and extremist rhetoric. Despite these issues, the White House pushed for Grok’s inclusion, expediting its availability to government buyers.

Details on pricing or government discounts for xAI’s services have not yet been released.

Key Takeaways for Government Professionals

• Political Influence Can Override Standard Procurement Processes.
  The Grok approval highlights how political intervention may fast-track vendor approvals. While OpenAI, Google, and Anthropic were approved through standard channels, xAI’s inclusion required direct White House action. The urgency is clear in GSA emails demanding Grok’s immediate reinstatement, bypassing typical technical evaluations. This case shows how political priorities can outweigh procedural norms in government contracting.
• AI Vendors Use Aggressive Pricing to Win Government Contracts.
  Major AI companies are offering their tools to federal agencies at steeply discounted rates. OpenAI and Anthropic provide their services for $1 per year, and Google’s Gemini service is priced at 47 cents annually. These loss-leader offers aim to encourage widespread adoption within government, setting the stage for future, more lucrative contracts. This aligns with government initiatives like the OneGov procurement strategy and the AI Action Plan, which promote faster AI integration across federal agencies.

Government buyers should monitor these developments closely, as political influence and aggressive pricing strategies may continue to shape AI procurement decisions. Staying informed about vendor offerings and approval processes will be critical for effective acquisition planning.