The General Services Administration has signed an 18-month OneGov agreement with xAI that makes Grok 4 available to every federal agency, priced at an eye-catching $0.42 per agency through March 2027. The deal bundles dedicated xAI engineering support alongside the model access.
The Deal
OneGov is the GSA’s vehicle for purchasing software and AI services across government at a single negotiated rate. This agreement extends Grok 4 to all federal agencies rather than requiring separate procurements, streamlining adoption across the federal workforce and giving every agency a common AI assistant.
The Pricing
The headline figure — $0.42 per agency — is a symbolic price point, far below conventional enterprise rates for frontier model access. It signals xAI’s intent to win government share aggressively rather than monetize it directly, positioning the deal as a strategic foothold instead of a near-term revenue driver.
- 18-month term running through March 2027
- All federal agencies covered under a single agreement
- Dedicated xAI engineering support bundled in
What This Means
For xAI, the contract secures a permanent federal presence at near-negligible cost and a reference point for future government business. For the federal government, it caps a period of aggressive AI procurement in which agencies have rushed to put frontier assistants in the hands of workers. The bigger question — how heavily federal workflows should lean on a single vendor’s model — will play out over the 18-month term.