The Trump administration has signed a deal with Elon Musk’s xAI that would allow the artificial intelligence tool to be used widely across government, signalling a thaw in relations between the president and his billionaire backer.
Under an agreement announced on Thursday, xAI will offer its Grok chatbot to federal agencies for a nominal $0.42 fee per department, for a period of 18 months. The move follows similar deals struck by the government with Google’s Gemini and Meta’s Llama, as well as other leading AI models.
Following Musk and Trump’s public break-up earlier this summer, the president had suggested the US government should rethink its contracts with the billionaire’s businesses, such as Tesla and SpaceX.
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