OpenAI is poised to outpace competitors such as Anthropic and Google in the race to integrate its AI tools into federal agency workflows.
The artificial intelligence giant has signed a deal with the US General Services Administration (GSA), the government’s central procurement agency, to provide ChatGPT Enterprise to participating federal agencies for as little as $1 per agency over the next year.
The partnership came a day after GSA added OpenAI, Google, and Anthropic to the list of approved AI vendors that can offer their services to civilian federal agencies. The companies will offer their tools through the Multiple Award Schedule (MAS), a federal contracting platform that allows government agencies to access AI tools through pre-agreed contracts so they don’t have to negotiate with vendors individually.
It is unclear whether other AI companies will offer their services at such discounted prices, although GSA Federal Acquisition Service Commissioner Josh Grunbaum in a statement called on “other U.S. AI companies to follow OpenAI’s lead and work with us.”
TechCrunch has reached out to Anthropic and Google for more information.
In addition to access to ChatGPT Enterprise, OpenAI is offering unlimited use of the enhanced models for an additional 60 days. Federal employees will also have access to a new government user community and specially designed training materials to familiarize them with OpenAI tools.
Data security is a top priority for government agencies that are concerned about leaking sensitive information into training model sets. TechCrunch has asked the GSA for details on how government data is being protected, including whether measures such as on-premises hosting or private cloud deployments are being used to improve security.
“The government is taking a cautious approach to artificial intelligence, putting security first,” a GSA spokesperson told TechCrunch. “This ensures that sensitive information is protected while allowing agencies to reap the benefits of artificial intelligence.”
OpenAI’s discount comes a few weeks after the Trump administration released its Artificial Intelligence Action Plan, which, among other things, aims to spur the development of data centers and integrate more AI tools into government agencies. This is also a consequence of Trump’s executive order that bans the use of “advanced artificial intelligence” and artificial intelligence models that are not “ideologically neutral” in government contracts.
TechCrunch reached out to OpenAI to learn more about the partnership with the GSA and how the company will respond to Trump’s executive order.
