In a significant development, El Salvador has announced a partnership with Elon Musk’s xAI to integrate artificial intelligence (AI) into its public education system. This initiative aims to leverage advanced AI technology to enhance learning experiences for students across the country.
The collaboration will involve deploying xAI’s conversational AI model, Grok, in over 5,000 schools. This deployment is planned to occur over the next two years and will provide more than one million students with adaptive tutoring. The AI system is designed to personalize learning, adjusting to each student's pace and mastery level to align with the curriculum.
Grok, developed by Musk’s tech company xAI, is an advanced AI chatbot. It is closely integrated with the X platform and is engineered to offer conversational, real-time responses by accessing live platform data.
Elon Musk Emphasizes Future of Education
According to a press release from xAI, the project is also intended to support thousands of teachers. The initiative positions AI as a collaborative tool rather than a replacement for educators in the classroom environment.
The two-year rollout plan is designed to address educational disparities between urban and rural areas. Furthermore, it aims to establish a framework for the responsible and human-centered adoption of AI in educational institutions.
El Salvador President Nayib Bukele highlighted the collaboration as a continuation of El Salvador’s dedication to innovation. He stated:
“El Salvador doesn’t just wait for the future to happen; we build it. From establishing the global standard in security to now pioneering AI-driven education, El Salvador proves that nations can leapfrog directly to the top through bold policy and strategic vision.”
Elon Musk shared Bukele’s perspective, emphasizing the transformative potential of this partnership. He remarked:
“By partnering with President Bukele to bring Grok to every student in El Salvador, we’re putting the most advanced AI directly in the hands of an entire generation. El Salvador isn’t waiting for the future of education — they’re building it with xAI.”
In addition to technology deployment, xAI and the Salvadoran government intend to collaborate on developing new methodologies, datasets, and frameworks. These resources will serve as guidance for the ethical and effective use of AI in classrooms globally.
Transitioning from Bitcoin to AI Initiatives
El Salvador’s recent move into AI technology follows its notable Bitcoin (BTC) experiment, which began in September 2021. This experiment marked the first national adoption of the leading cryptocurrency as legal tender.
The Bitcoin initiative was established with the goals of improving financial inclusion, attracting foreign investment, and reducing the costs associated with remittances.
However, the results of the Bitcoin experiment after four years appear to be mixed. While initiatives like Bitcoin City and the planned “Volcano Bonds” have kept El Salvador in the global spotlight, studies indicate that the usage of the state-backed Chivo wallet by citizens remains low.
In a 2024 interview with TIME, President Bukele acknowledged that the widespread adoption of Bitcoin among his countrymen had not met expectations. He stated:
“Bitcoin hasn't had the widespread adoption we hoped for.”
In December 2024, El Salvador reached an agreement with the International Monetary Fund (IMF) to discontinue Bitcoin’s legal tender status in the country.
The IMF had consistently raised concerns about the risks Bitcoin's volatility and limited adoption posed to economic stability, making reforms a condition for financial assistance.
As part of securing a $1.4 billion agreement, the Bukele administration revised the 2021 Bitcoin Law. This revision ended the mandatory acceptance of Bitcoin, halted tax payments in BTC, and scaled back the state’s Chivo wallet program.
While the U.S. dollar continues to be the primary currency in El Salvador, the country retains its Bitcoin holdings as a reserve asset, despite the curtailment of its official monetary role.