OpenAI is set to undercut rivals Anthropic and Google in the AI tool market, as it has reached an agreement with the US General Services Administration (GSA) to offer its ChatGPT Enterprise tool to federal agencies at a discounted rate. The partnership comes after the GSA added OpenAI, Google, and Anthropic to a list of approved AI vendors for civilian federal agencies.
Under the terms of the deal, participating federal agencies will be able to access ChatGPT Enterprise for just $1 per agency for the next year, with unlimited use of advanced models available for an additional 60 days. Federal employees will also receive tailored introductory training and access to a new government user community.
Data security is a top priority for government agencies, and the GSA has assured that measures such as on-premises or private cloud deployments are being used to enhance security. This approach ensures sensitive information remains protected while enabling agencies to benefit from AI-driven efficiencies.
The discount comes amid growing interest in AI adoption by government agencies. The Trump administration’s AI Action Plan aims to boost data center buildouts and integrate more AI tools into government, while an executive order bans “woke AI” and AI models that aren’t “ideologically neutral” from government contracts. OpenAI has announced its intentions to approach these regulations, but details remain unclear.
Source: https://techcrunch.com/2025/08/06/openai-is-practically-giving-chatgpt-to-the-government-for-free