Grok has seen limited U.S. government adoption despite SpaceX’s AI growth pitch

xAI’s Grok chatbot has seen limited adoption across U.S. government agencies, creating a gap between SpaceX’s AI growth pitch and the tool’s current footprint in one of the world’s largest enterprise technology markets.

Federal 2025 AI inventory records include more than 400 publicly identified government AI use cases that name a specific vendor. Three involve xAI or Grok. By comparison, 234 involve OpenAI models or Microsoft Copilot, 33 involve Gemini or other Alphabet products, and 26 involve Anthropic’s Claude.

Grok has been available to federal agencies through the General Services Administration for eight months at a cost of 42 cents per agency. That near-zero pricing matches a common enterprise AI strategy: encourage early government adoption first, then pursue larger paid contracts later.

A separate set of federal AI inventory records shows Grok in limited test or pilot use at the Department of Energy’s Lawrence Livermore National Laboratory and the Election Assistance Commission. The Pentagon has also added Grok to GenAI.mil, and xAI is one of several companies deploying AI systems on Defense Department classified networks.

The federal data lands alongside corporate usage figures from Netskope showing weak enterprise adoption for Grok. The combined picture gives xAI more work to do if SpaceX’s AI services business is going to support the scale described in its IPO-related growth story.

Source: Reuters, “Exclusive: Grok falls flat in Washington, undercutting SpaceX’s AI growth story,” May 21, 2026 — https://www.reuters.com/world/grok-falls-flat-washington-undercutting-spacexs-ai-growth-story-2026-05-21/