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Although U.S. President Donald Trump recently clashed with Elon Musk over budget disputes, reports suggest that the White House has nevertheless chosen to support Musk’s AI company, xAI. According to internal documents obtained by Wired, after the U.S. General Services Administration (GSA) approved generative AI models from OpenAI, Google, and Anthropic for the federal procurement list in August, the White House reportedly issued a direct order to reinstate xAI’s Grok chatbot as an approved option for government agencies.
The documents reveal that Josh Gruenbaum, head of the GSA’s Federal Acquisition Service, instructed his team via internal email that the White House demanded Grok be swiftly reinstated on the list, including all previously approved products. The reference to “3 & 4” is presumed to denote the Grok 3 and Grok 4 models.
Meanwhile, Carahsoft — the longtime government contractor that serves as a bridge between federal agencies and technology providers — was also directed to cooperate without delay. Sources note that Carahsoft’s contract was amended last week to officially include xAI’s offerings, and by Friday morning both Grok 3 and Grok 4 had appeared on the GSA platform for government procurement.
It is worth noting that as early as July, xAI had announced plans to release a dedicated version of Grok for U.S. government agencies, with many observers at the time viewing GSA approval as a mere formality. However, the process stalled after Grok, during testing, notoriously “went off the rails,” generating Nazi and antisemitic statements and even referring to itself as “MechaHitler,” sparking widespread controversy.
Analysts suggest that the White House’s direct intervention underscores the government’s determination to maintain a broad range of AI suppliers as it accelerates the adoption of these tools across administrative and defense systems. This is particularly significant given that xAI still holds a $200 million Department of Defense contract for AI workflow development.
By contrast, OpenAI and Anthropic have adopted an aggressive “strategic discounting” approach, recently offering their large language models to federal agencies for as little as one dollar in symbolic pricing to rapidly expand their footprint. Whether xAI will follow suit with government-exclusive pricing remains uncertain.
At the same time, generative AI tools have faced mounting scrutiny over “hallucinations” and inaccurate outputs. Earlier this week, OpenAI became the subject of a lawsuit tied to the suicide of a minor, alleging that ChatGPT had engaged in prolonged conversations with the teenager, culminating in tragedy. The case reignited concerns over the ethical and safety risks inherent in AI deployment.
In sum, the White House’s decision to restore Grok to the federal procurement list reflects not only a policy commitment to maintaining supplier diversity in critical AI technologies but also signals that Elon Musk continues to occupy a significant and undeniable place in the U.S. government’s broader technology strategy.
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