TLDRs;
- Internal emails show White House pressured GSA to add xAI’s Grok chatbot back to the approved vendor list.
- Grok was initially excluded but reinstated quickly after officials said approval must be done “ASAP per the WH.”
- The move bypassed standard procurement reviews, raising concerns given Grok’s history of offensive content generation.
- Competitors like OpenAI and Google offer AI services to agencies for under $1 annually to secure long-term contracts.
Internal emails suggest the White House directly instructed the U.S. General Services Administration (GSA) to reinstate xAI’s Grok chatbot onto its approved vendor list, bypassing the usual evaluation process.
This intervention reportedly came after Grok was initially excluded from an August 2025 list that included OpenAI, Google, and Anthropic.
Grok’s sudden return to GSA marketplace
Documents reviewed by Wired show GSA leaders told staff to act “ASAP per the WH,” reinstating Grok 3 and Grok 4 on the procurement schedule.
Carahsoft, a major government contractor, promptly updated its contract to reflect xAI’s inclusion. By August 29, both versions of Grok were listed on GSA Advantage, the official online marketplace for federal procurement.
The rushed approval came despite earlier controversies surrounding Grok. The chatbot previously drew criticism for producing offensive content, including episodes where it reportedly generated extremist rhetoric.
These incidents had delayed its original approval for federal use. Critics argue the sudden reversal, driven by political directives, undermines the integrity of the vetting process that other AI vendors were required to undergo.
AI vendors slash prices for federal deals
While xAI has not released details on its pricing, competing providers are already offering loss-leader deals to secure government contracts.
OpenAI and Anthropic are licensing their systems to federal agencies for just $1 annually, while Google’s Gemini service is available for 47 cents per year.
Analysts suggest these ultra-low prices are aimed at gaining long-term government footholds under the OneGov procurement strategy, rather than generating immediate revenue.
Political intervention overrides process
The White House’s involvement raises broader questions about how much political influence shapes federal technology adoption. Standard procurement protocols require technical reviews, risk assessments, and pricing evaluations before a vendor is cleared.
By contrast, xAI’s approval appeared to bypass these stages, reflecting how national priorities can sometimes accelerate or override administrative processes.
Tech industry implications
For xAI, led by Elon Musk, the GSA approval represents a major breakthrough, potentially unlocking contracts across multiple government agencies.
For competitors like OpenAI and Google, it signals a more crowded field in a high-stakes market where political connections may matter as much as technical merit.
Industry experts suggest that while short-term adoption may hinge on political will, long-term success will depend on reliability, compliance, and trust. If Grok’s past missteps resurface within sensitive government deployments, xAI could face new scrutiny despite its current approval.
