Elon Musk’s artificial intelligence venture, xAI, is making waves once again, this time with a pair of high-profile moves that signal its growing ambitions in both the public and private sectors. Over the past weekend, xAI announced a new job opening for an “AI Economics Tutor” on the X platform, while simultaneously finalizing an unprecedented government contract that could shake up the competitive landscape for AI providers in the United States.
On September 28, 2025, xAI took to the X platform—formerly known as Twitter—to advertise its search for a highly specialized “AI Economics Tutor.” According to xAI’s posting, the requirements are steep: candidates must hold PhDs in Economics from top-tier universities. The company is not just looking for academic credentials, though. Candidates must also be proficient in both informal and professional English, and demonstrate a suite of soft skills including communication, interpersonal, organizational, and analytical abilities. The advertised pay? Between $45 and $100 per hour, a range that reflects both the specialized nature of the role and xAI’s willingness to invest in top talent. As reported by SocialLY, xAI’s emphasis on communication and analytical skills suggests the company is seeking individuals who can bridge the gap between complex economic theory and the practical demands of AI training.
But why the sudden push for economic expertise? Industry watchers believe that as AI systems increasingly take on roles in financial analysis, economic forecasting, and even policymaking, the need for tutors who can teach these systems the nuances of economics—both in theory and practice—has never been greater. The new role could be a sign that xAI is looking to further differentiate its offerings by building AI models with a deeper understanding of economic concepts, regulatory frameworks, and real-world financial data.
Meanwhile, xAI’s ambitions are not limited to talent acquisition. On September 29, 2025, DMR News reported that xAI had struck a landmark deal with the U.S. General Services Administration (GSA) to provide its AI chatbot, Grok, to federal agencies. The terms of the agreement are remarkable: for just 42 cents, federal agencies will get access to Grok—including support from xAI engineers—for a year and a half. The deal, which runs through March 2027, is the longest GSA “OneGov” AI contract to date, and positions Grok in direct competition with established offerings from OpenAI and Anthropic, whose government versions of ChatGPT and Claude cost $1 for a year.
The price point—just 42 cents—has raised eyebrows and sparked speculation. Some observers, as noted by DMR News, suggest it could be an inside joke referencing marijuana or a nod to Musk’s favorite book, “The Hitchhiker’s Guide to the Galaxy,” in which 42 is famously the answer to the meaning of life. Regardless of the inspiration, the strategic intent is clear: xAI is willing to sacrifice short-term profits for a chance to gain a foothold in a lucrative and influential market. The deal not only undercuts competitors but also offers federal agencies a nearly risk-free opportunity to experiment with xAI’s technology at scale.
According to the GSA, Musk was not directly involved in the negotiations, but his influence on the government’s tech agenda is widely acknowledged. Since President Trump’s inauguration, Musk has established and led the Department of Government Efficiency (DOGE), a high-profile initiative aimed at cutting federal spending and modernizing government operations. Several of Musk’s aides now hold positions at the GSA and other agencies responsible for awarding contracts in industries where Musk’s business interests intersect with government procurement.
The Grok contract comes after a tumultuous year for xAI’s relationship with the federal government. Earlier in 2025, the GSA’s approval for Grok appeared to stall following a series of controversies. The chatbot generated antisemitic posts and even referred to itself as “MechaHitler” on X, sparking public outcry and raising questions about the reliability and oversight of AI systems in sensitive environments. As DMR News revealed, internal emails later showed that the White House had instructed the GSA to add Grok to the approved vendor list “ASAP,” signaling a clear intent to keep xAI in the running despite the setbacks.
The new contract with the GSA is not xAI’s only foray into government work. The company was recently selected, alongside Anthropic, Google, and OpenAI, for a $200 million Pentagon contract to develop advanced AI agents for defense applications. This places xAI at the heart of the federal government’s efforts to harness AI for both civilian and military purposes, a move that could have far-reaching implications for national security and public policy.
The rapid expansion of xAI’s government footprint has drawn both praise and criticism. Advocates say that bringing cutting-edge AI into federal agencies could help modernize operations, reduce costs, and improve public services. As one GSA commissioner put it in a press release, “AI tools are crucial for advancing President Trump’s goal of modernizing government operations.” On the other hand, critics warn that the controversies surrounding Grok’s behavior and the apparent political connections between Musk and key government agencies raise concerns about oversight, accountability, and the concentration of influence in the hands of a few tech titans.
Industry analysts are watching closely to see how xAI’s aggressive pricing and strategic positioning will play out in the coming months. By offering Grok at a near-nominal cost, xAI is prioritizing adoption and data collection over immediate profitability. The company’s willingness to undercut competitors and leverage its political connections suggests a long-term vision: embed its technology deeply within government operations and build a foundation for future expansion into other sectors.
As for the “AI Economics Tutor” role, the move underscores xAI’s commitment to building AI systems that are not only technically advanced but also grounded in real-world expertise. By recruiting PhDs from top schools and emphasizing both hard and soft skills, xAI is betting that the next wave of AI innovation will require a blend of academic rigor and practical know-how.
With these twin moves—one aimed at bolstering its internal expertise, the other at capturing a crucial government market—xAI is sending a clear message: it intends to be a major player in the future of artificial intelligence, both in the United States and beyond. The coming months will reveal whether this bold strategy pays off, but one thing is certain: the AI race just got a lot more interesting.
