The General Services Administration has accelerated federal artificial intelligence adoption through new agreements with Meta and Elon Musk’s xAI, providing government agencies streamlined access to competing AI models.
xAI’s Grok chatbot received approval for government use at $0.42 per organisation through March 2027, undercutting OpenAI’s $1 annual pricing whilst offering the longest contract term under GSA’s OneGov initiative, reports Bloomberg.
GSA announced its Meta collaboration on 22nd September, making the company’s Llama open source models available across federal departments through the OneGov framework. This eliminates individual agency negotiations and supports objectives outlined in President Trump’s AI Action Plan.
Federal Acquisition Service Commissioner Josh Gruenbaum emphasised the government’s commitment to AI integration whilst praising Meta’s partnership in expanding federal access to open source models that provide unique benefits for agencies and government applications.
Meta’s open source approach allows agencies to retain full control over data processing whilst building applications at reduced costs. “America is leading on AI and we want to make sure all Americans see the benefit of AI innovation through better, more efficient public services. With Llama, America’s government agencies can better serve people,” added Mark Zuckerberg, Founder and CEO of Meta.
The xAI partnership includes dedicated engineering support for implementation, representing the most competitively priced OneGov agreement to date. GSA has secured similar arrangements with OpenAI, Anthropic, and Google as part of broader government modernisation efforts.
“Widespread access to advanced AI models is essential to building the efficient, accountable government that taxpayers deserve,” Gruenbaum stated regarding the Grok arrangement. “We value xAI for partnering with GSA—and dedicating engineers—to accelerate the adoption of Grok to transform government operations.”
House and Senate Democrats alongside advocacy groups have raised concerns about Grok’s deployment, citing potential inaccuracies, bias, and safety issues for federal applications.
The initiatives align with OMB memoranda directing accelerated federal AI adoption through innovation and efficient procurement processes.
