The U.S. General Services Administration (GSA) has finalized a major agreement with Elon Musk’s xAI, making its Grok artificial intelligence models available to government agencies nationwide. 

Announced on Thursday, the deal provides access to Grok at $0.42 per organization, one of the lowest pricing structures yet for AI services under GSA’s OneGov initiative. The contract runs until March 2027, marking the longest term for a OneGov AI agreement to date.

Low-cost access

The agreement covers both Grok 4 and Grok 4 Fast, xAI’s advanced reasoning models, and includes dedicated engineering support for agencies adopting the tools, the GSA stated in a press release. Federal offices will also be able to pursue upgrade paths to enterprise subscriptions aligned with FedRAMP and Department of Defense security standards.

To make adoption easier, xAI will deliver training programs and tailored enablement services, helping agencies integrate AI models into existing workflows securely. The GSA emphasized that the contract is designed to accelerate responsible AI use while standardizing pricing and avoiding duplicative procurement deals across the government.

Federal Acquisition Service Commissioner Josh Gruenbaum is optimistic about Grok’s use in the federal government. “Widespread access to advanced AI models is essential to building the efficient, accountable government that taxpayers deserve—and to fulfilling President Trump’s promise that America will win the global AI race. We value xAI for partnering with GSA—and dedicating engineers—to accelerate the adoption of Grok to transform government operations,” he stated.

Expanding AI access

The Grok agreement is part of the broader OneGov Strategy, which was launched earlier this year to modernize federal technology acquisition. Under the initiative, agencies gain access to AI tools from leading providers at negotiated rates, ensuring consistent pricing and simplified procurement. Companies such as OpenAI, Anthropic, Google, and Meta have signed similar deals, but xAI’s contract is currently the longest in duration and lowest in cost. For context, OpenAI is charging government agencies $1 per year for ChatGPT, as noted in a Bloomberg News report.

Elon Musk, for his part, is grateful for the opportunity to use Grok in the federal government. “xAI has the most powerful AI compute and most capable AI models in the world. Thanks to President Trump and his administration, xAI’s frontier AI is now unlocked for every federal agency empowering the U.S. Government to innovate faster and accomplish its mission more effectively than ever before,” he said.

xAI cofounder Ross Nordeen also shared his thoughts about the matter. “‘Grok for Government’ will deliver transformational AI capabilities at $0.42 per agency for 18 months, with a dedicated engineering team ensuring mission success. We will work hand in glove with the entire government to not only deploy AI, but to deeply understand the needs of our government to make America the world leader in advanced use of AI,” he said.

Tesla CEO Elon Musk recently noted that Full Self-Driving (FSD) Version 14 will begin its early wide release next week. 

Musk shared the update in a post on social media platform X.

FSD V14 rollout strategy 

Musk’s comments about FSD V14’s release schedule came as a response to angel investor Jason Calacanis, who noted that his past few rides with a Hardware 4 Tesla running FSD V13.x were “absolutely perfect.” In his post, the Silicon Valley veteran indicated that there’s no shame in Tesla being extra careful with its rollout strategy for FSD. 

Musk responded by stating that FSD V14.0 should go into early wide release next week. He also shared some information on the tentative rollout dates for the next FSD V14 updates. By V14.2, Musk stated that Tesla’s vehicles that are running FSD should feel “sentient.”

“Version 14.0 goes into early wide release next week, then 14.1 about 2 weeks later and finally 14.2. The car will feel almost like it is sentient being by 14.2,” Musk wrote in his post.

A “sentient” FSD

Musk’s recent announcement builds on weeks of teasers about the capabilities of FSD V14. He has described the system as the second most important AI/Autopilot update since FSD V12, which first reached Tesla employees in November 2023. Version 14 is expected to feature a tenfold increase in parameter count, a critical upgrade in the neural networks that are utilized by Tesla’s autonomous driving system.

One key improvement for FSD V14 will be fewer “nags,” or steering wheel prompts, which drivers have often criticized as annoying. While Musk has highlighted that FSD V14 is not the same as Tesla’s Unsupervised FSD that is being used in Austin’s Robotaxi fleet today, the update is still expected to be a transformative leap in capability nonetheless. “It feels alive,” Musk wrote in a post on X.

Elon Musk recently addressed his proposed Tesla 2025 CEO Performance Award on X, highlighting that his concerns are about influence, not personal wealth. 

The 2025 CEO Performance Award, worth up to $900 billion in TSLA stock, could make Elon Musk the world’s first trillionaire, provided that he hits incredibly ambitious targets for the electric vehicle maker.

Tesla’s ambitious targets

Musk shared his thoughts in a response to an X post that referenced his compensation package. “It’s not about ‘compensation,’ but about me having enough influence over Tesla to ensure safety if we build millions of robots. 

“If I can just get kicked out in the future by activist shareholder advisory firms who don’t even own Tesla shares themselves, I’m not comfortable with that future,” Musk wrote in his post.

Tesla’s new performance award would grant Musk shares as the company grows from today’s $1.1 trillion valuation to an incredible $8.5 trillion within a decade. At that level, Tesla would become the world’s largest company by valuation by a notable margin, eclipsing today’s top companies such as Apple, Nvidia, and Microsoft.

Massive product goals

Elon Musk’s 2025 CEO Performance Award will not be easy to accomplish. To earn his award, Musk would have to lead Tesla an operating profit of $400 billion anually, a substantial increase from today’s $17 billion annually.

Musk’s influence would grow alongside Tesla’s valuation, with his stake rising from 13% to about 25%. Tesla’s board emphasized in its filing that retaining Musk is fundamental to hitting these milestones.

The package extends beyond financials, as it also ties compensation to milestones in Tesla’s core products and emerging technologies. These include the delivery of 20 million vehicles cumulatively, 10 million active Full Self-Driving subscriptions, and the deployment of 1 million robots, and the rollout of 1 million Robotaxis.