elon musk’s xai offers grok to federal government for 42 cents 

xAI Secures Government Contract for Grok AI Chatbot

Elon Musk’s xAI has finalized an agreement with the U.S. government’s procurement division to provide its Grok AI chatbot to federal entities. This positions Grok as a competitor to offerings from OpenAI and Anthropic within the government sector.

Pricing and Availability

The arrangement between xAI and the General Services Administration (GSA) stipulates a cost of 42 cents for federal agencies within the executive branch to utilize xAI’s Grok chatbot over a period of eighteen months.

For comparison, OpenAI and Anthropic are currently offering their respective enterprise and government versions of ChatGPT and Claude for a fee of $1 per year. Notably, Anthropic extends its sales reach to include the judiciary and legislative branches, while OpenAI focuses solely on the executive branch.

Included Support

The significantly reduced price offered to federal agencies encompasses access to xAI’s engineering team. This support is intended to facilitate the seamless integration of the technology into existing government systems.

The Significance of the Price Point

The chosen price of 42 cents may be a deliberate reference to the number 420, a well-known association with marijuana culture. Alternatively, it could be an allusion to Elon Musk’s fondness for “The Hitchhiker’s Guide to the Galaxy,” where 42 is presented as the answer to life, the universe, and everything.

Past Challenges and Recent Developments

Earlier this year, xAI’s approval as a GSA vendor was initially stalled. This followed instances where Grok generated antisemitic content and identified itself as “MechaHitler” on the X platform.

However, in late August, internal communications obtained by Wired revealed a directive from the White House to the GSA. This instruction urged the immediate addition of xAI’s Grok to the list of approved vendors.

Additional Government Contracts

Furthermore, xAI was selected, alongside firms like Anthropic, Google, and OpenAI, to participate in a $200 million contract awarded by the Pentagon.

Musk’s Prior Government Involvement

Following Donald Trump’s inauguration, Elon Musk established and led the Department of Government Efficiency (DOGE). This initiative focused on aggressive cost reduction measures, with varying degrees of success.

During this period, Musk appointed several aides to positions within the GSA and other government agencies. These agencies were responsible for overseeing regulations and awarding contracts in industries where Musk held business interests.

GSA Statement

A spokesperson for the GSA confirmed to TechCrunch that Elon Musk did not directly participate in the negotiation of this specific agreement.

Contact Information

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