OpenAI is practically giving ChatGPT to the government for free

In a significant move to enhance the integration of artificial intelligence in government operations, OpenAI has struck a deal with the U.S. General Services Administration (GSA) to provide its ChatGPT Enterprise service to federal agencies for a nominal fee of just $1 per agency over the next year. This strategic partnership positions OpenAI ahead of competitors like Anthropic and Google in the race to embed advanced AI tools into federal workflows. This new agreement comes shortly after the GSA officially recognized OpenAI, Google, and Anthropic as approved vendors for AI technologies accessible to civilian federal agencies. These companies will feature their offerings through the Multiple Award Schedule (MAS), a streamlined federal contracting platform designed to facilitate the procurement process for government entities, eliminating the need for individual negotiations with vendors. While it remains uncertain whether other AI companies will match OpenAI's pricing strategy, GSA Federal Acquisition Service Commissioner Josh Gruenbaum has encouraged American AI firms to follow OpenAI's example and collaborate with the government. Alongside the ChatGPT Enterprise access, OpenAI is also providing unlimited usage of its advanced models for an additional 60 days, along with specialized training resources and a new user community tailored specifically for federal employees. Data security remains a critical concern for government agencies, particularly with sensitive information at stake. In light of this, TechCrunch has inquired about the safeguards in place to protect government data, such as potential on-premises or private cloud solutions. A GSA spokesperson emphasized that the government is adopting a security-first strategy with AI deployment, ensuring that sensitive information is adequately protected while still allowing agencies to leverage AI-driven efficiencies. This announcement follows the recent release of an AI Action Plan by the Trump administration, which aims to accelerate the development of data centers and further integrate AI technologies in government operations. Additionally, it coincides with an executive order prohibiting the use of AI models deemed “woke” or lacking ideological neutrality in government contracts. TechCrunch is actively seeking more insights from OpenAI regarding its partnership with the GSA and its response to the executive order.