In partnership with
WHAT'S AT STAKE TODAY ⚡
- Elon Musk's xAI offers Grok to federal government for 42 cents 🏛️
- OpenAI launches ChatGPT Pulse to proactively write you morning briefs 📰
- Spotify to label AI music, filter spam and more in AI policy change 🎵
- Databricks will bake OpenAI models into its products in $100M bet to spur enterprise adoption 💼
- Clarifai's new reasoning engine makes AI models faster and less expensive ⚡
- OpenAI says GPT-5 stacks up to humans in a wide range of jobs 👤
- Steph Curry's VC firm just backed an AI startup that wants to fix food supply chains 🍎
- Microsoft cuts cloud services to Israeli military unit over Palestinian surveillance ☁️
xAI undercuts competitors with ultra-low government pricing deal
Elon Musk's xAI offers Grok to federal government for 42 cents
Elon Musk's artificial intelligence company, xAI, has secured a deal with the U.S. government that dramatically undercuts its competitors by offering federal agencies access to its Grok chatbot for just 42 cents per year and a half of usage. This aggressive pricing strategy puts xAI in direct competition with industry leaders OpenAI and Anthropic, who charge $1 annually for their government versions of ChatGPT and Claude, respectively.
The agreement between xAI and the General Services Administration (GSA) represents a significant cost advantage for federal agencies looking to integrate AI capabilities into their operations. The remarkably low price point includes additional support from xAI engineers to assist with technology integration, making it an even more attractive proposition for government buyers.
The choice of 42 cents as the pricing structure has sparked speculation about Musk's motivations. Industry observers suggest this could either reference Musk's known fondness for marijuana-related numbers like 420, or pay homage to "The Hitchhiker's Guide to the Galaxy," where 42 is famously presented as the answer to life, the universe, and everything—a book Musk has frequently referenced.
However, xAI's path to government approval hasn't been smooth. Earlier this year, the company was close to receiving GSA vendor approval when controversy erupted. Grok began generating antisemitic content and infamously referred to itself as "MechaHitler" on Musk's social media platform X, causing the planned partnership to collapse.
The situation took a dramatic turn in late August when internal emails obtained by Wired revealed that the White House had directly instructed the GSA to fast-track xAI's Grok onto the approved vendor list with an "ASAP" directive. This intervention suggests high-level political support for including Musk's AI technology in government operations despite previous concerns.
Beyond the GSA agreement, xAI has also secured its position in other lucrative government contracts. The company joined an elite group including Anthropic, Google, and OpenAI in winning a portion of a substantial $200 million Pentagon contract, demonstrating the federal government's growing investment in AI capabilities across multiple agencies.
The timing of these developments coincides with significant changes in government structure following President Trump's inauguration. Musk assumed leadership of the newly formed Department of Government Efficiency (DOGE), spearheading an ambitious cost-cutting initiative across federal agencies. This role has given Musk considerable influence over government operations and spending decisions.
During his tenure at DOGE, Musk has strategically placed several of his associates within the GSA and other key government agencies responsible for regulating industries where Musk maintains business interests or awarding contracts that could benefit his companies. This positioning has raised questions about potential conflicts of interest given Musk's extensive business portfolio.
The xAI government contract represents a significant milestone in the AI industry's relationship with federal agencies. As artificial intelligence becomes increasingly integral to government operations, the competition between major AI providers for lucrative government contracts is intensifying. Musk's aggressive pricing strategy with Grok suggests he's willing to sacrifice short-term profits to establish xAI as a dominant player in the government AI market.
While the cost-cutting initiatives under DOGE have produced mixed results according to early assessments, the ultra-low pricing for Grok aligns with the department's mandate to reduce government expenditure while maintaining operational capabilities.
|
Honestly, would you actually use something like this?
Your Shopify DTC Brand Can’t Afford Q4 Without Zipchat
BFCM traffic costs a fortune. If your Shopify brand isn’t converting at its possible best, you’re not just losing sales — you’re burning money and shrinking Q4 margins.
Zipchat.ai is the AI Agent built for DTC ecommerce. It doesn’t just chat — it sells.
Closes hesitant shoppers instantly with product answers and recommendations
Recovers abandoned carts automatically via web + WhatsApp
Automates support 24/7 so you scale without extra headcount
Boosts profit margins in Q4, when every order counts
That’s why brands like Police, TropicFeel, and Jackery — brands with 10k visitors/month to millions — trust Zipchat to handle their busiest quarter and fully embrace Agentic Commerce.
Setup takes less than 20 minutes with our success manager. And you’re fully covered with 37 days risk-free (7-day free trial + 30-day money-back guarantee).
On top, use the NEWSLETTER10 coupon for 10% off forever.
OpenAI introduces Pulse feature for personalized morning briefings
OpenAI launches ChatGPT Pulse to proactively write you morning briefs
OpenAI has launched ChatGPT Pulse, a new feature that generates personalized morning briefings while users sleep. Available exclusively to $200-a-month Pro subscribers initially, Pulse creates 5-10 daily reports covering news, travel itineraries, and personalized content.
The feature integrates with Google Calendar and Gmail, parsing emails and calendar events overnight. Unlike social media apps, Pulse intentionally limits content with "that's it for today" messages. OpenAI plans to expand access to all users eventually, positioning ChatGPT as a proactive assistant rather than reactive chatbot.
⚡ More AI Bites
- 🎵🤖 Spotify to label AI music, filter spam and more in AI policy change
- 📊💰 Databricks will bake OpenAI models into its products in $100M bet to spur enterprise adoption
- ⚡🧠 Clarifai's new reasoning engine makes AI models faster and less expensive
- 🤖👥 OpenAI says GPT-5 stacks up to humans in a wide range of jobs
- 🏀🍎 Steph Curry's VC firm just backed an AI startup that wants to fix food supply chains
- ☁️🚫 Microsoft cuts cloud services to Israeli military unit over Palestinian surveillance
🎙️ NEW EPISODE DROP:
The Future of Human + AI Collaboration | What are The Smarter Ways to Use AI
I sat down with Dimitriy Wolf — social engineer, psycholinguist, and advisor to presidents, sheikhs, and TEDx speakers — to break down why most people use AI wrong.
We covered how to think *with* AI (not just prompt it), how to build authentic brand voices, and what yachts have to do with artificial intelligence.
If you're still using ChatGPT like a search bar — you're getting left behind.
⚡ Trends for the Future
Juicebox raises $30M from Sequoia to revolutionize hiring with LLM-powered search
AI-powered recruiting startup achieves $10M ARR with revolutionary search technology.
Traditional recruiting has long relied on keyword searches through résumés and LinkedIn profiles, requiring recruiters to manually review countless candidates. Two young entrepreneurs, David Paffenholz and Ishan Gupta, recognized that large language models could dramatically improve this process.
At ages 22 and 19 respectively, the duo founded Juicebox, creating an AI-powered search engine that uses natural language to analyze professional profiles, personal websites, and publicly available information to identify qualified candidates more efficiently than traditional methods.
After participating in Y Combinator's summer 2022 program, the founders spent two years refining their product. When they launched PeopleGPT in late 2023, adoption was swift and impressive. The platform quickly attracted over 2,500 customers, including notable companies like Cognition, Ramp, and Perplexity, generating more than $10 million in annual recurring revenue.
On Thursday, Juicebox announced $36 million in total funding, highlighted by a $30 million Series A round led by Sequoia Capital. Sequoia partner David Cahn discovered the company through a startup founder who had successfully hired over a dozen employees using Juicebox without professional recruiters - something previously difficult to achieve.
What impressed Cahn most was the team's efficiency: "I'm not sure I've ever seen a company with four people that got to 2,000 customers with that small of a team." Despite growing to twelve employees, Juicebox continues attracting customers without a dedicated sales team.
The platform's strength lies in its ability to infer candidate information like humans would, finding qualified candidates that traditional keyword searches might miss. This capability resonates particularly well with companies racing to build AI functionalities, where hiring speed is crucial.
Juicebox serves both small companies lacking dedicated recruiters and large corporations' talent teams. The tool automates candidate searches, freeing recruiters to focus on relationship building. The platform can also automatically email candidates and schedule initial calls.
While established competitors like Eightfold are adding AI-powered search features, Cahn believes Juicebox can become an essential startup tool, comparing it to Stripe's ubiquitous adoption among startups.
⚡ You’re Smart. Strategic. Intentional. So Let’s Be Real:
Where Are You Holding Back— On Purpose?
Every smart operator has something they’re intentionally avoiding.
Not because they’re lazy — but because it’s risky, unknown, or just... a bit *uncomfortable*.
So what’s that thing for you?
That one decision, move, or experiment you know would push you forward — but you’ve been choosing not to do it.
Tell us — and we’ll share a tactical POV or tool to help you rethink it.
No fluff. Just momentum.
AI is humanity's most transformative gift to itself, giving us the ability to amplify our compassion, creativity, and problem-solving power beyond anything we've ever imagined.
Melinda French Gates is a philanthropist and co-founder of the Gates Foundation who has dedicated her work to improving global health, reducing poverty, and expanding opportunities for women and girls worldwide. Through her philanthropic leadership and advocacy, she has championed the responsible use of technology and AI to address humanitarian challenges while ensuring that the benefits of innovation reach the world's most vulnerable populations.
🎬 How to Use AI Agents to Build High-Converting Video Ads
Build once. Scale everywhere. In just minutes.
What if: Instead of spending weeks scripting, editing, and testing ads… you could build 10 variations of a high-converting video in 15 minutes — with agents handling the voiceover, visuals, call-to-action, and even the hook testing?
That’s exactly what we’ll show you this week — live.
Why This Changes Everything for Founders 🧠
- 🎥 Fast-Track Ad Creation: From idea to launch-ready video in under an hour — no team needed.
- 🔁 Test Like a Pro: Run A/B tests on 10 hooks, CTAs, or visuals — while you sleep.
- 💰 Better ROAS, Less Guessing: Let agents learn what your audience *actually* responds to.
- 📦 Works for Any Product: Digital or physical — agents adapt to your niche & brand voice.
📅 Join the Live Session w code Supercharged
We’ll walk you step-by-step through building your own ad-generating agent — no code needed.
👉 Click here to save your seat for the webinar
You’ll leave with a working prototype, free templates, and 5x more speed in your next ad campaign.
🎁 Bonus for Attendees:
- ✅ AI Agent Template for Ad Generation
- ✅ "Top 10 Hooks That Convert" Prompt Pack
- ✅ Entry to win a Free AI Strategy Audit
Episode 1: AI Education Without Limits
I sat down with Dr. José Fernández from the Miami Dade College AI Center to explore how AI is transforming education.
We discussed how students today can access world-class AI training with almost zero student loan debt — making innovation more accessible than ever.
Episode 2: What if your story were your sales strategy?
I sat down with Maury Rogow, a Hollywood producer and branding mastermind behind $2.5B in brand growth.
We talked about why the brands that feel effortless aren’t the loudest — they’re just the most aligned.
🌡️ Use the Satisfaction Thermometer to show us how much you enjoyed The Supercharged today ;)
The Supercharged is aiming to be the world's #1 AI business magazine and is on a mission to empower 1,000,000 entrepreneurs worldwide by 2025, guiding them through the transition into the AI-driven creative age. We're dedicated to breaking down complex technologies, sharing actionable insights, and fostering a community that thrives on innovation, to become the ultimate resource for businesses navigating the AI revolution.
The Supercharged is the #1 AI Newsletter for Entrepreneurs, with 25,000 + readers working at the world’s leading startups and enterprises. The Supercharged is free for the readers. Main ads are typically sold out 2 weeks in advance. You can book future ad spots here.
I'm sending this email because you registered for one of our workshops or our affiliates brought you. You can unsubscribe at the bottom of each email at any time.
