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.