The billionaire’s company, xAI, would let federal agencies use the system for a nominal fee.
By Catholics for Catholics
A deal between the government and Elon Musk’s artificial intelligence company, xAI, was reached Thursday, which would permit federal agencies to use chatbot for a token fee.
The Daily Wire reported that according to the agreement between the General Services Administration, which runs many of the U.S. government’s vendor contracts and xAI, federal bureaus will be charged 42 cents in total to use xAI’s chatbot Grok for a year and a half. Agencies that use Grok will receive help from xAI engineers to implement the company’s tools.
“We look forward to continuing to work with President Trump and his team to rapidly deploy A.I. throughout the government for the benefit of the country,” Musk said.
The contract highlights Washington’s efforts to increase the use of AI in government operations, while escalating competition among leading developers of the thriving technology for federal business.
The deal will be in effect till March 2027 and will permit agencies to buy Grok models for 42 cents per organization, compared with the $1 per year OpenAI charges for access to its ChatGPT service, GSA said.
Still, naysayers have said Grok has produced wrong answers and politically slanted commentary, exposing wide-ranging doubts over the reliability of generative AI.
Some advocacy groups have signaled episodes where the system generated offensive language or conspiracy-tinged claims, prompting questions about the safeguards built into its algorithms.
The Musk deal is the most recent under GSA’s “OneGov Strategy,” which began in April to standardize technology procurement and expand government use of AI. Other suppliers under the program include OpenAI, Meta Platforms, Alphabet’s Google, and Anthropic.
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