Elon Musk Sells AI Tech to US Government for 42 Cents Amid Shift in Trump Ties

Breaking News: Elon Musk Sells Grok to U.S. Government for 42 Cents In a surprise move, Elon Musk's AI company has sold its Grok technology to the U.S. government for just 42 cents per agency. The deal, announced on September 22, marks a significant shift in the relationship between Musk and President Donald Trump, who have been at odds in the past. Key Details: The contract is an 18-month agreement with the General Services Administration (GSA). The GSA has also partnered with Meta, Alphabet's Google, OpenAI, and Anthropic as part of its OneGov initiative. The deals are short-term to prevent one model dominating the market. Immediate Impact: The sale of Grok to the U.S. government is seen as a significant development in the AI landscape. Critics argue that the deal could lead to a concentration of power, while supporters see it as a step towards greater transparency and accountability. Background Context: Musk and Trump have had a tumultuous relationship, with both sides trading barbs on social media. However, this deal may signal a thawing in their relationship. The GSA's OneGov initiative aims to promote competition and innovation in the AI sector. What Happens Next: The implications of this deal are far-reaching, and experts will be closely watching how it affects the AI market. As the contract is only 18 months long, it remains to be seen whether this partnership will lead to a more permanent collaboration between Musk's company and the U.S. government. In response to the news, a spokesperson for the GSA said: "This deal represents a unique opportunity for the government to access cutting-edge AI technology while promoting competition in the market." Elon Musk's team has not commented on the sale of Grok, but sources close to the company suggest that this deal may be just the beginning of a new era of collaboration between private industry and the U.S. government. This breaking news story will continue to be updated as more information becomes available. *This story is developing. Information compiled from Fortune reporting.*