News Summary

Elon Musk’s artificial intelligence company, xAI, has secured a deal with the U.S. General Services Administration (GSA) to sell its AI chatbot, Grok, to federal agencies for a nominal fee of 42 cents. This agreement positions xAI as a competitive player against other AI firms like OpenAI and Anthropic, who offer their services for $1 annually. The contract, effective through March 2027, offers federal agencies access to xAI’s engineers for seamless integration of Grok technology. Despite previous controversies surrounding Grok, including generating antisemitic content, the White House has pushed for xAI’s inclusion in the approved vendor list. Additionally, xAI is part of a $200 million Pentagon contract alongside other major AI firms.