Trump admin reunites with Elon Musk in pursuit of AI dominance: 'Benefit of the country'

The General Services Administration has announced an agreement with Elon Musk's xAI to implement artificial intelligence into the federal workforce and "transform" operations.

The Trump administration has reached an agreement with the General Services Administration to implement Grok.  (Getty Images)

Josh Gruenbaum, federal acquisition service commissioner at the General Services Administration, explained in a press release that the new widespread access to AI models is an "essential" tool not only in fulfilling Trump's promise that the United States will win the AI race, but also for "building the efficient, accountable government that taxpayers deserve."

As part of the agreement, xAI engineers will provide full support in order to "accelerate the adoption of Grok to transform government operations."

The agreement between GSA and xAI will be effective immediately, allowing federal agencies to "begin leveraging the benefits of Grok AI models through GSA’s established procurement channels," the GSA press release says. 

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Elon Musk listens as President Donald Trump meets with India's Prime Minister Narendra Modi in the Oval Office of the White House, on Thursday, Feb. 13. (AP/Alex Brandon)

The agreement, the final frontier model to be unveiled as part of the GSA’s comprehensive OneGov Strategy, will also be providing agencies with an "upgrade path" to the Federal Risk and Authorization Management Program, a government compliance program standardizing security measures.

"‘Grok for Government’ will deliver transformational AI capabilities at $0.42 per agency for 18 months, with a dedicated engineering team ensuring mission success," xAI cofounder Ross Nordeen said in a statement.

"We will work hand in glove with the entire government to not only deploy AI, but to deeply understand the needs of our government to make America the world leader in advanced use of AI "

Gruenbaum called it "impressive" from a "milestone perspective" how "quickly we got all these frontier models onto the GSA schedules—at dollar deals or less."

"This one is the best value yet, and with the longest duration. That’s a big deal."

Last month, GSA announced the launch of a new tool it says will be instrumental in enabling agencies across the federal government to efficiently implement artificial intelligence at scale and take a major step forward rolling out the president's "AI Action Plan."

The Trump administration rolled out it's A.I. Action Plan in July after Trump ordered the federal government in January to develop a plan of action for artificial intelligence in order to "solidify our position as the global leader in AI and secure a brighter future for all Americans." 

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Elon Musk receives a golden key from U.S. President Donald Trump in the Oval Office at the White House in Washington, D.C., May 30, 2025.  (Reuters/Nathan Howard)

Trump has made U.S. artificial intelligence growth a cornerstone of his administration, such as notching multi-billion deals with high-tech firms such as Oracle and OpenAI for the Stargate project, which is an effort to launch large data centers in the U.S, as well as a $90 billion energy and tech investment deal specifically for the state of Pennsylvania to make it the U.S. hub for AI. 

After completing his tenure with the Department of Government Efficiency (DOGE) in late May and a public falling out with Trump, Musk was seen sitting next to and talking with Trump at the memorial service for Charlie Kirk last weekend in Arizona, suggesting a possible rekindling of their friendship.

"Elon came over and said hello," Trump said to reporters after the event. "I thought it was nice, he came over, we had a little conversation."

A GSA spokesperson told Fox News Digital the agreement with xAI has been in the works for weeks. 

Fox News Digital's Emma Colton contributed to this report

Andrew Mark Miller is a reporter at Fox News. Find him on Twitter @andymarkmiller and email tips to AndrewMark.Miller@Fox.com.

https://www.foxnews.com/politics/trump-admin-reunites-with-elon-musk-in-pursuit-ai-dominance-benefit-of-country