After a period of estrangement, Elon Musk and President Trump have officially reunited through an agreement to integrate Grok AI into federal agencies, aiming to modernize the U.S. government.
The Trump administration joins forces with Elon Musk to expand AI applications. Photo: Reuters.
The Trump administration has just achieved a major step forward in its strategy to dominate artificial intelligence (AI) technology, as the General Services Administration (GSA) — the agency overseeing real estate, procurement, and government technology — formally signed a partnership with Elon Musk’s company xAI to accelerate digital transformation and operational improvements across the entire federal system, Fox News reported.
On the morning of September 25 (local time), the GSA announced that the partnership agreement, effective through March 2027, will allow all federal agencies to access two advanced AI models: Grok 4 and Grok 4 Fast — both developed by xAI.
According to Elon Musk, this deal will serve as a catalyst for bold innovation in the public sector. He also expressed gratitude to President Trump in an official statement.
“xAI possesses the world’s most powerful AI computing capabilities and the most advanced AI models. Thanks to President Trump and his administration, our pioneering AI technology has now been unlocked for all U.S. government agencies, driving innovation and increasing mission effectiveness like never before,” said Elon Musk, co-founder and CEO of xAI.
“We look forward to continuing our collaboration with President Trump and his team to rapidly deploy AI throughout the federal government for the benefit of the nation,” he emphasized.
The agreement allows AI deployment at a cost of just $0.42 per agency over 18 months — a price the GSA described as “the best ever” — along with a dedicated team of xAI engineers supporting the rollout.
This move is part of the “AI Action Plan” announced by President Trump in July, which includes major commitments to invest in AI technology, data, and infrastructure, such as the Stargate project and a $90 billion investment in Pennsylvania to build a national AI hub.
Notably, the agreement also marks the rekindling of Trump and Elon Musk’s relationship after a period of tension.
After resigning from the Department of Government Efficiency (DOGE) in late May and publicly clashing with Trump, Elon Musk recently appeared alongside the President at Charlie Kirk’s memorial event in Arizona — signaling signs of reconciliation between the two.
“Elon came over and greeted me. I thought that was good. We had a brief conversation,” Trump told reporters after the event. A GSA spokesperson added that the agreement with xAI had been negotiated over the past several weeks.
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