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.

During his annual speech, Xiaomi CEO Lei Jun shared his thoughts about Tesla and the Model Y. The best-selling all-electric crossover is the primary rival of Xiaomi’s own YU7, which has seen a lot of interest in China.

Despite the competition, Lei Jun noted that the Model Y is a very impressive vehicle.

Model Y teardown

As per the Xiaomi executive, the Chinese tech giant actually purchased three Tesla Model Y units earlier this year so they could study them. During their teardown, Xiaomi’s team was very impressed with the all-electric crossover.

“We bought three Tesla Model Ys for disassembly and research inside Xiaomi earlier this year. What a great vehicle,” Lei Jun stated.

He also noted that consumers who do not like Xiaomi’s YU7 should strongly consider a Model Y instead. “If you don’t like Xiaomi YU7, you can choose Model Y,” he said.

Not just because of Elon Musk’s fame

In previous comments, Lei Jun noted that the Model Y is a great vehicle, not just because the company’s CEO is a prolific individual. He also admitted that the Model Y is actually a leading vehicle in several important metrics, such as energy consumption and tech features like FSD, among others.

“It is the world’s best-selling vehicle not simply because of Musk fame and there is a lot to it. We (Xiaomi) torn down Model Y and analyzed it. There’s a lot to learn from Model Y. Tesla is not only leading in vehicle energy consumption, FSD, etc. It is also leading in many other aspects,” he said.

Lei Jun also shared his congratulations following Tesla’s first driverless vehicle delivery demonstrations in Austin. “Tesla is indeed amazing, leading the industry trends in many areas, especially FSD. We still have to continue learning!” Lei Jun wrote on Weibo in a response to Tesla VP Grace Tao, who posted about the milestone.

Used Tesla prices in Sweden are climbing again after a sharp drop earlier this year, hinting at what could very well be a fresh wave of consumer interest in the country’s second-hand EV market. 

As per electric car dealer Carla, which has grown into Sweden’s second-largest used EV retailer, Tesla resale values jumped nearly 10% between June and August. The surge followed a turbulent period when used prices of the EV maker’s vehicles saw a notable drop.

Rising demand

Carla CEO Patrik Illerstig told Dagens Industri that interest in used Teslas has surged over the summer months. “We saw that Tesla prices went up almost 10% from the beginning of June to the end of August,” he noted.

Even with the recent rise, used Teslas remain priced attractively compared to new models, with some lightly driven units selling for nearly half the cost of a factory-fresh car, as noted in a CarUp report. 

The rise in consumer interest for Teslas in Sweden has been welcomed by Carla. The rebound has helped push the used electric car dealership back into profitability this year as more customers turned to used vehicles over new purchases.

A lot of car for the money

Illerstig noted that used buyers tend to gravitate towards Teslas. “Tesla has fallen in price faster than many other cars. Right now, you get a lot of car for your money if you buy a Tesla,” the Carla CEO stated.

Such sentiments are not surprising considering that Teslas tend to be quite worth the money, considering their safety, tech, and durability. Vehicles like the Model 3 sedan and the Model Y crossover, which are priced competitively against rivals, typically stand above their competitors due to their bang-for-the-buck nature. This is true especially for the Model Y, which saw a major refresh earlier this year.