WASHINGTON (dpa-AFX) - In an agreement with the U.S. General Services Administration, Elon Musk's artificial intelligence startup xAI will offer its chatbot Grok to federal agencies at a steep reduction of 42 cents for 18 months of access.
OpenAI and Anthropic, who are selling government versions of ChatGPT and Claude for $1 over a one-year period, are now directly competing with xAI as a result of the agreement.
Additionally, the agreement provides agencies with xAI engineers to assist with Grok integration. The price point highlights xAI's aggressive bid to win government contracts in a rapidly evolving AI race, even though it also reflects Musk's fondness for the number 42, a reference to The Hitchhiker's Guide to the Galaxy and his frequent use of '420' in business.
Approval was delayed earlier this year due to criticism for its discriminatory content and strange responses. However, emails from August showed that the White House instructed the GSA to include Grok on the vendor list 'as soon as possible.'
Additionally, xAI was chosen for a $200 million Pentagon contract to supply AI tools for defense, joining Anthropic, Google, and OpenAI.
The agreement will help 'rapidly deploy AI throughout the government for the benefit of the country,' according to Musk, who for a brief period oversaw a cost-cutting program at the GSA under the Department of Government Efficiency.
The deal emphasizes Washington's increasing reliance on sophisticated chatbots in spite of safety and dependability concerns, as well as Musk's desire to take on AI competitors.
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