In a strategic move that may reshape how artificial intelligence is adopted across the federal government, OpenAI is offering its enterprise-level ChatGPT service to U.S. federal agencies for only $1 per agency for the next year.
This groundbreaking offer is part of OpenAI’s new agreement with the U.S. General Services Administration (GSA), the government’s primary procurement agency. The deal gives federal agencies streamlined access to ChatGPT Enterprise via the Multiple Award Schedule (MAS)—a pre-negotiated federal contracting platform designed to simplify how government institutions procure technology solutions.
Leveling the Playing Field in Government AI Adoption
By pricing ChatGPT Enterprise at just $1 per agency, OpenAI is clearly positioning itself as the most accessible and cost-effective AI partner for federal entities. This move puts pressure on competitors like Google and Anthropic, who were also recently approved as AI vendors by the GSA.
While those companies have yet to reveal whether they’ll match OpenAI’s pricing model, GSA officials are encouraging more AI firms to follow suit. “We welcome other American AI companies to engage with us and help modernize government services,” said Josh Gruenbaum, Commissioner of the Federal Acquisition Service.
What Federal Agencies Will Get
Under the agreement, participating government agencies will not only receive access to ChatGPT Enterprise at a symbolic cost but also benefit from:
- Unlimited access to OpenAI’s most advanced models for the first 60 days
- Tailored onboarding and training materials to ensure staff can begin using AI effectively
Prioritizing Security and Data Privacy
As expected, data protection is a core concern. The federal government is placing a strong emphasis on ensuring that sensitive information isn’t compromised or fed into public training data.
OpenAI’s deployment must adhere to federal security standards, which may include private cloud setups, on-premise deployment options, or strict data isolation policies.
Aligning with Federal AI Policy Trends
This initiative aligns closely with recent political developments. The Trump administration’s AI Action Plan has called for a significant acceleration in federal AI integration and data center infrastructure. Moreover, an executive order recently issued prohibits the use of non-neutral or “woke” AI models in government contracting.
It remains unclear how OpenAI plans to address the ideological neutrality clause, but its inclusion in the MAS suggests the company is prepared to comply with evolving regulatory frameworks.
What This Means for the AI Industry
OpenAI’s aggressive pricing strategy could potentially reshape the competitive landscape for AI providers in the public sector. With such low entry costs, ChatGPT Enterprise could become the default AI tool across numerous federal departments—particularly as agencies look to modernize workflows, automate tasks, and explore AI-assisted decision-making.
While competitors may wait to see how this partnership unfolds, the message is clear: OpenAI is moving fast to become the federal government’s go-to AI partner—and it’s willing to almost give away its product to make that happen.