Saturday, September 27, 2025

Elon Musk's xAI offers Grok to federal government for 42 cents underbidding other competitors like OpenAI and Anthropic

Good news! And the lowest bidder is ...? The marvels of free markets and competition!

AI is fast becoming an affordable commodity! 😊

Do we have now the first bidding wars involving machine learning & AI? The cheaper, the better? 😊

"Elon Musk’s xAI has reached an agreement with the U.S. government’s purchasing arm to sell its AI chatbot Grok to the federal government for under a dollar, pitting it against OpenAI and Anthropic. 

Under the agreement between xAI and the General Services Administration (GSA), federal agencies under the executive branch will be charged 42 cents to use xAI’s chatbot Grok for a year and a half.

OpenAI and Anthropic are offering their enterprise and government versions of ChatGPT and Claude, respectively, for $1 for a year. OpenAI is also only selling to the executive branch, but Anthropic is selling to the judiciary and legislative, as well. ..."

Elon Musk's xAI offers Grok to federal government for 42 cents  | TechCrunch




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