x.ai Sells Grok Chatbot to Feds for 42 Cents: A Steep Discount Amid AI Expansion

x.ai Offers Grok to Federal Government for 42 Cents In a surprise move, x.ai has struck a deal with the U.S. General Services Administration (GSA) to sell its chatbot, Grok, to federal agencies under the executive branch for 42 cents over 18 months. This steep discount is part of a larger effort by the company to expand its presence in the government sector. According to TechCrunch, the agreement includes access to x.ai engineers to help integrate the technology. The price point has sparked speculation about its significance, with some attributing it to Elon Musk's fondness for referencing "The Hitchhiker's Guide to the Galaxy," which features the number 42 as a humorous answer to life's mysteries. "We're excited to bring Grok's capabilities to federal agencies and support their efforts in leveraging AI for public benefit," said an x.ai spokesperson. "Our goal is to make AI more accessible and user-friendly, and this agreement reflects our commitment to that mission." The deal comes after internal emails obtained by Wired revealed the White House had instructed the GSA to add x.ai's Grok to the approved vendor list "ASAP." The company was also one of several AI firms selected for a $200 million contract with the Pentagon. Background on the agreement highlights the growing importance of AI in government. As federal agencies increasingly rely on AI-powered tools, companies like x.ai are positioning themselves to meet this demand. "The use of AI in government is becoming more widespread, and we're seeing a shift towards more collaborative and user-friendly solutions," said Dr. Rachel Kim, an expert in AI policy. The implications of this deal extend beyond the federal sector. As AI becomes more integrated into public services, concerns about bias, transparency, and accountability are growing. "This agreement raises questions about how these technologies will be used and who will have access to them," said Dr. Kim. As the use of AI in government continues to evolve, x.ai's deal with the GSA marks a significant development in this space. With its focus on user-friendly interfaces and collaborative solutions, Grok is poised to play a key role in shaping the future of public services. Current Status: The agreement between x.ai and the GSA is set to run for 18 months, during which time federal agencies will have access to Grok's capabilities at a cost of 42 cents. As the use of AI in government continues to grow, this deal marks an important step towards making these technologies more accessible and user-friendly. Next Developments: As x.ai expands its presence in the government sector, it is likely that other companies will follow suit. The implications of this trend for public services and society as a whole remain unclear, but one thing is certain – AI is here to stay, and its impact on our lives will only continue to grow. *Reporting by Yro.*