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International Business Times UK
International Business Times UK
Giuliano de Leon

Trump Says Yes to Elon Musk's Grok for Federal Agencies — For 42 Cents, How Can It Help the US Government?

Elon Musk United States Elon Musk Grok Musk Grok US Government Donald Trump GSA the General Services Administration Meta Microsoft
Close-up macro shot of a smartphone screen showing the Grok AI app icon alongside other popular AI apps including ChatGPT, Google Gemini, and Meta AI. (Credit: Salvador Rios/Unsplash)

On Thursday, 25 September 2025, US President Donald Trump authorised a landmark agreement with Elon Musk's company xAI. The deal, approved through the General Services Administration (GSA), grants all US federal agencies access to Grok, Musk's advanced artificial intelligence system.

The contract, which lasts until March 2027, is the longest OneGov AI deal ever signed. The cost is what caught global attention. Each agency will only pay 42 cents for 18 months of access, raising questions about how and why such a price was set.

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