Summary3 min read

WSJ Tech News Briefing: TNB Tech Minute

Episode: Musk’s xAI Partners With Trump Administration
Date: September 25, 2025
Host: Zoe Culkin, The Wall Street Journal

Episode Overview

This Tech Minute episode dives into major AI news: Elon Musk’s xAI has struck a deal with the Trump administration, giving federal agencies access to its AI models. The episode also covers a major OpenAI/Databricks partnership, new congressional scrutiny of H1B visa use by tech giants, and a $1.1 billion funding round for the AI data center startup N Scale. With a quick, informative style, host Zoe Culkin highlights shifting alliances and tech policy moves shaping today’s AI landscape.

Key Discussion Points

1. Musk’s xAI Strikes Government Deal

What happened: Elon Musk’s xAI enters an agreement with the Trump administration to provide AI models to federal agencies.
- Models included: Grok 4 and the new Grok 4F.
- Offered at a nominal fee of 42 cents.
Significance: Signals a warming relationship between Musk and the White House, and xAI joining the likes of Google, OpenAI, and Anthropic in seeking government foothold.
- Quote ([00:36]):
  “The Trump administration will offer artificial intelligence models to federal agencies from Elon Musk's xAI, a move that suggests Musk's relationship with the White House is on the mend.” —Zoe Culkin
- Quote ([00:48]):
  “xAI now joins the ranks of Alphabet's Google, OpenAI, and Anthropic, which are also essentially giving away their technology to secure a foothold in the federal government, a stamp of approval in the AI race.” —Zoe Culkin

2. OpenAI and Databricks Sign $100 Million AI Deal

Announcement: OpenAI and Databricks have entered a multi-year, $100 million partnership.
- Purpose: To sell advanced AI services to major business customers.
- Key benefit: Makes OpenAI models like GPT-5 directly available within Databricks.
- Quote ([01:00]):
  “OpenAI and Databricks have signed a multi-year $100 million deal to sell AI services to large business customers, making it easier for them to build AI agents with their own data.” —Zoe Culkin

3. Congressional Scrutiny on H1B Visa Practices

Background: Recent H1B system reform by the Trump administration.
Exclusive WSJ Reporting:
- Senators Chuck Grassley (R) and Dick Durbin (D) have sent letters to top users of H1B visas (Amazon, Apple, JPMorgan Chase).
- The inquiry: How many H1B workers are employed, their wages, and the impact on American workers.
- Quote ([01:17]):
  “Republican Judiciary Committee Chairman Chuck Grassley and Democratic Ranking member Dick Durbin sent letters to the largest users of H1B visas, including Amazon, Apple, and JPMorgan Chase, asking them to explain how many H1B workers the companies employ, what wages they're paid, and whether American workers have been displaced.” —Zoe Culkin

4. N Scale Raises $1.1 Billion for AI Data Centers

Deal Details: UK-based N Scale raises $1.1 billion from investors like Nvidia, Dell Technologies, Nokia, and others.
- Focus: Expansion of data centers for AI networking, storage, and computing.
- Target markets: Europe, America, Middle East.
- Quote ([01:39]):
  “N Scale owns data centers that provide networking, storage, and computing to power AI, and it'll use the money to roll out data centers across Europe, America, and the Middle East.” —Zoe Culkin

Notable Quotes & Moments

On xAI’s Nominal Fee Offer
([00:46]):
“Under the agreement, federal agencies will get access to models like Grok 4 and a new, faster version called Grok 4F, for a nominal fee of 42 cents.” —Zoe Culkin
On Tech Companies Competing for Government Approval
([00:50]):
“A stamp of approval in the AI race.” —Zoe Culkin

Timestamps for Key Segments

00:36: Introduction to xAI’s partnership with the Trump administration
00:48: xAI joining other AI giants in courting the government
01:00: OpenAI and Databricks ink $100 million deal
01:17: Bipartisan inquiry into H1B visa use by tech giants
01:39: N Scale’s $1.1 billion funding to expand global AI data centers

This episode concisely unpacks the latest high-stakes moves in AI, connecting political tie-ups, enterprise tech, and global infrastructure—all in under two minutes.

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At the moment, AI can help you search for business advice, but it can't step in to help if things take a bad turn. But how about quickly finding an AI expert who can Siemens xcelerator Ecosystem helps you connect with top industrial AI providers and find innovative solutions from a single trusted source. That's AI for real from the global market leader in industrial AI, Siemens. Learn more on USA.Siemens.com AI here's your morning TNB Tech Minute for Thursday, September 25th. I'm Zoe Culkin for the Wall Street Journal. The Trump administration will offer artificial intelligence models to federal agencies from Elon Musk's xai, a move that suggests Musk's relationship with the White House is on the mend. Under the agreement, federal agencies will get access to models like Grok 4 and a new, faster version called Grok 4F past for a nominal fee of 42 cents. Xai now joins the ranks of Alphabet's, Google, OpenAI and Anthropic, which are also essentially giving away their technology to secure a foothold in the federal government, a stamp of approval in the AI race. In other AI news, OpenAI and Databricks have signed a multi year $100 million deal to sell AI services to large business customers, making it easier for them to build AI agents with their own data, meaning OpenAI's models like GPT5 will be directly available to businesses that use Databricks platform. We are exclusively reporting that last night, Republican Judiciary Committee Chairman Chuck Grassley and Democratic Ranking member Dick Durbin sent letters to the largest users of H1B visas, including Amazon, Apple and JPMorgan Chase, asking them to explain how many H1B workers the companies employ, what wages they're paid, and and whether American workers have been displaced in the process. It comes just days after the Trump administration overhauled the H1B system, arguing that foreign professionals were occupying jobs that could be done by an American. And lastly, the UK based startup N Scale says it's raised $1.1 billion from Nvidia, Dell Technologies, Nokia and others. N Scale owns data centers that provide networking, storage and computing to power AI, and it'll use the money to roll out data centers across Europe, America and the Middle East. That's your TMB Tech Minute. Join us again this afternoon for more. At the moment, AI can help you search for business advice, but it can't step in to help if things take a bad turn. But how about quickly finding an AI expert who can? Siemens Accelerator Ecosystem helps you connect with top industrial AI providers and find innovative solutions from a single trusted source. That's AI for real. From the global market leader in industrial AI, Siemens. Learn more on USA.Siemens.com AI.