OpenAI Strikes Landmark Deal to Offer ChatGPT Enterprise to US Federal Agencies for Just $1
In a bold competitive maneuver, the AI giant's new partnership with the GSA aims to accelerate the adoption of its powerful tools across federal agencies, placing pressure on rivals Google and Anthropic.
WASHINGTON D.C. – OpenAI is set to dramatically expand its presence within the U.S. government, securing a landmark agreement with the General Services Administration (GSA) to offer its powerful ChatGPT Enterprise platform to federal agencies for a nominal fee of just $1 per agency for the first year.
The move positions OpenAI as a front-runner in the competitive race to integrate artificial intelligence into federal workflows, significantly undercutting rivals like Google and Anthropic. The partnership was announced just one day after the GSA, the government’s central procurement arm, officially added all three AI leaders to its list of approved vendors.
These companies are now featured on the GSA’s Multiple Award Schedule (MAS), a contracting platform designed to streamline the procurement process. The MAS allows government agencies to access cutting-edge AI tools through pre-negotiated contracts, eliminating the need for lengthy individual negotiations with each vendor.
In a statement, GSA Federal Acquisition Service Commissioner Josh Gruenbaum acknowledged OpenAI’s aggressive strategy and encouraged others to follow. “We encourage other American AI technology companies to follow OpenAI’s lead and work with us,” he said, signaling a desire for competitive pricing across the emerging government AI market. It remains unclear if Google or Anthropic plan to match the heavily discounted offer.
To further incentivize adoption, OpenAI’s deal includes several additional perks for federal employees. The package grants unlimited use of its advanced AI models for an initial 60-day period, access to a new government-focused user community, and tailored introductory training to help agency staff quickly get up to speed with the technology.
Addressing the critical issue of data security—a primary concern for government bodies handling sensitive information—the GSA emphasized its commitment to a safe rollout. “The government is taking a cautious, security-first approach to AI,” a GSA spokesperson told TechCrunch. “This ensures sensitive information remains protected while enabling agencies to benefit from AI-driven efficiencies.” Specific security measures, such as whether data will be handled on-premises or in private cloud deployments, are still being clarified.
This agreement comes just weeks after the Trump administration released its AI Action Plan, which calls for increased AI integration in government and a boost in data center construction. The deal also follows a recent executive order from President Trump banning AI models that are not “ideologically neutral” from government contracts. OpenAI has not yet commented on how it will navigate the terms of this executive order.
