OpenAI Offers ChatGPT Enterprise to U.S. Government for Just $1 Per Agency
OpenAI is poised to significantly impact the race for AI tool integration within U.S. federal agency workflows, potentially undercutting rivals like Anthropic and Google.
The AI giant has reached a landmark agreement with the U.S. General Services Administration (GSA), the government’s central purchasing arm. Under this pact, OpenAI will offer ChatGPT Enterprise to participating federal agencies for an astonishingly low price of just $1 per agency for the next year.
This strategic partnership comes just a day after the GSA officially added OpenAI, along with Google and Anthropic, to its list of approved AI vendors for civilian federal agencies. These companies’ tools will now be accessible via the Multiple Award Schedule (MAS), a federal contracting platform that simplifies AI tool acquisition for government agencies by using pre-negotiated contracts, thus eliminating the need for individual vendor negotiations.
It remains uncertain whether other AI firms will match OpenAI’s deeply discounted rate. However, Josh Gruenbaum, GSA Federal Acquisition Service commissioner, encouraged competition by stating in a recent GSA release, “other American AI technology companies to follow OpenAI’s lead and work with us.”
In addition to providing access to ChatGPT Enterprise, OpenAI is extending an offer of unlimited use of its advanced models for an additional 60 days. Federal employees will also gain access to a new government user community and receive tailored introductory training resources to familiarize themselves with OpenAI’s suite of tools.
Data security is a paramount concern for government entities, especially regarding the safeguarding of sensitive information from being incorporated into AI model training sets. TechCrunch has followed up with the GSA to obtain specific details on the security measures being implemented to protect government data, including whether solutions like on-premises or private cloud deployments are being utilized.
A GSA spokesperson emphasized the government’s approach, telling TechCrunch, “The government is taking a cautious, security‑first approach to AI. This ensures sensitive information remains protected while enabling agencies to benefit from AI‑driven efficiencies.”
OpenAI’s substantial discount follows closely on the heels of the Trump administration’s release of its AI Action Plan, which aims to boost data center buildouts and enhance the integration of AI tools across government functions. This initiative also comes after a previous executive order from the Trump administration that prohibits “woke AI” and AI models deemed not “ideologically neutral” from being considered for government contracts.
TechCrunch has reached out to OpenAI for further details regarding its GSA partnership and its strategy for addressing the implications of the aforementioned executive order.
