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 will be charged 42 cents to use xAI’s chatbot Grok for a year and a half. OpenAI and Anthropic are offering their respective enterprise and government versions of ChatGPT and Claude for $1 for a year.

The steep discount for federal agencies includes access to xAI engineers to help integrate the technology.

The price point is either part of a running joke Musk has of using variations of 420, a marijuana reference, or a nod to one of Musk’s favorite books, “The Hitchhiker’s Guide to the Galaxy,”

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