Elon Musk’s AI firm inks deal with Trump admin

WASHINGTON — Tech baron Elon Musk’s xAI company has inked a deal with the Trump administration to help streamline and modernize the federal government — but the two billionaires haven’t exactly kissed and made up.

The General Services Administration — which oversees federal properties and procures goods, services and IT for government agencies — finalized a deal to access Grok 4 and Grok 4 Fast until March 2027, the agency announced Thursday.

The deal with AI was being negotiated weeks ago, a White House official told The Post, adding that the relationship between Musk and Trump and the business deal is “separate.”

Although Trump took the time to “listen” to Musk at Charlie Kirk’s memorial service on Sunday, there is a long way to go for the two men to fully reconcile, and we “shouldn’t expect Elon in the Oval any time soon,” the source said.

Still, the deal marks a rare team-up after Musk went berserk on Trump in June over the deficit impact of the One Big Beautiful Bill Act (now the Working Families Tax Cut Act), which the tech mogul lambasted for undermining the cost-cutting work of his Department of Government Efficiency (DOGE) team.

In addition to granting the GSA access to its high-end chatbot system, xAI will also task its engineers with helping government agencies implement its artificial intelligence tools into government agency workstreams.

Fox News first reported on the deal.

“xAI has the most powerful AI compute and most capable AI models in the world,” Musk, who founded xAi after his X takeover, said in a statement.

“Thanks to President Trump and his administration, xAI’s frontier AI is now unlocked for every federal agency, empowering the U.S. Government to innovate faster and accomplish its mission more effectively than ever before,” Musk continued.

“We look forward to continuing to work with President Trump and his team to rapidly deploy AI throughout the government for the benefit of the country.”

While the total pricetag of the deal hasn’t been released, the GSA claims it will have access to Grok AI models for $0.42 per federal agency.

It is the longest-term “OneGov AI agreement” the feds have inked to date.

The deal gives agencies the ability to upgrade their systems for “expanded features and higher rate limits.”

xAI will also provide training programs to help the government adopt its systems.

The GSA is tasked with centralizing procurement for shared services across the vast federal bureaucracy, including over $110 billion worth of contracts for products and services.

The deal with xAI is intended to simplify procurement for AI systems used by the federal government.

“Widespread access to advanced AI models is essential to building the efficient, accountable government that taxpayers deserve—and to fulfilling President Trump’s promise that America will win the global AI race,” Federal Acquisition Service Commissioner Josh Gruenbaum said in a statement.

Back in July, the Trump administration released its AI Action Plan, in keeping with a January executive order from the president to craft plans for the nascent technology.

Recently, the GSA began the process of rehiring hundreds of federal workers who were laid off as part of early beltightening by the Trump administration, the Associated Press reported.

Musk’s time as the driving force behind DOGE wrapped up in May. Following a chummy farewell with Trump in the Oval Office, the two men got into an epic public spat.

Since then, the two have exchanged compliments on social media and met in person on Sunday in Arizona at Kirk’s memorial service.

“Elon came over and said hello,” Trump later recounted to reporters. “I thought it was nice, he came over, we had a little conversation.”

A lipreader claimed that Trump had told Musk, “Let’s try and work out how to get back on track.”