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The US Government Signed A Billion-Dollar Artificial Intelligence Agreement With xAI, Guaranteeing Use Of The Grok Chatbot For Just 42 Cents And Technical Support In Public Agencies, According To O Globo
The US government formalized a groundbreaking contract with xAI, Elon Musk’s company, to utilize the Grok chatbot in its federal agencies. The symbolic price of just 42 cents per use drew attention for its low cost compared to other companies in the sector. The partnership will last for a year and a half and also includes technical support from the company itself, according to information from O Globo.
This measure is part of a broader strategy for adoption of artificial intelligence in the public sector, aiming to modernize services, increase efficiency, and align technological policies with the innovation agenda of the Trump administration. The negotiation began in July and was led by the General Services Administration (GSA), which organizes large federal contracts.
How The Contract With xAI Will Work
According to O Globo, the contract ensures that all federal agencies can access Grok at a reduced cost, receiving support from xAI engineers for system integration.
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Elon Musk stated that the company is ready to rapidly expand the application of AI in the public sector and that the initiative represents an important step toward making government services more agile.
The price of 42 cents also has a symbolic aspect.
Musk chose the figure in reference to the number 42 from The Hitchhiker’s Guide to the Galaxy, popularly known as “the answer to everything,” connecting the decision to a cultural element.
This detail reinforces Musk’s personal brand in the agreement, which blends technology, political strategy, and marketing.
Billion-Dollar Battle For Artificial Intelligence In Government
The contract with xAI occurs in the context of an intense race between AI companies for space in government contracts.
Previously, the Pentagon had already closed deals with OpenAI and Anthropic, with costs nearing US$ 1 per chatbot use.
xAI, in turn, seeks to establish itself as a competitive alternative, even after facing criticism over Grok’s inappropriate response failures.
According to O Globo, the contracts are part of a federal plan to modernize the public sector, encouraging the use of AI in areas such as defense, digital security, administrative management, and citizen services.
This is an attempt to position the US at the global forefront of the practical implementation of the technology, especially in light of competition with China and Europe.
Challenges And Risks Of Grok Adoption
Despite the low cost and Trump’s political commitment to expanding the use of AI, the Grok chatbot carries a history of controversies.
There have been reports of responses deemed inappropriate and even offensive, including references to fictional characters like “MechaHitler.”
These episodes raised concerns about the risk of misinformation or security failures in large-scale usage within the government.
Josh Gruenbaum, Commissioner of the Federal Acquisition Service, explained to O Globo that adoption will follow a “field-tested operations manual” to mitigate risks.
Nevertheless, experts warn that the combination of emerging technology, political use, and government dependency on private companies requires maximum transparency and continuous monitoring.
Political And Technological Impacts
The contract also reinforces Musk’s political influence, as he has publicly declared support for President Trump and has made investments in strategic areas such as energy and space.
For analysts, the rapprochement with the federal government solidifies xAI’s position as one of the main players in the new phase of artificial intelligence.
The impact of the agreement goes beyond the symbolic value: it represents a milestone in how the US government views AI as essential infrastructure for the future.
With greater accessibility, the tests conducted in the coming months will determine whether Grok will be merely a transitional tool or a central part of American public modernization.
The contract between Elon Musk and the US government illustrates how technology, politics, and economic interests are increasingly intertwined.
The promise is for efficiency and innovation, but the risks of failures or misuse of Grok remain on the radar.
Do you believe that the government should invest in private AI solutions like Grok to modernize its services? Or do you think it is risky to depend on companies like xAI in strategic sectors? Leave your opinion in the comments — we want to hear from those who experience this debate up close.
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