OpenAI is positioned to outpace competitors like Anthropic and Google in the race to integrate AI tools into federal agency workflows. The company has secured an agreement with the U.S. General Services Administration (GSA), the government’s central purchasing body, to provide ChatGPT Enterprise to participating federal agencies for just $1 per agency for the next year.
This partnership follows the GSA’s recent addition of OpenAI, Google, and Anthropic to its list of approved AI vendors for civilian federal agencies. These companies will offer their tools through the Multiple Award Schedule (MAS), a federal contracting platform that allows government agencies to access AI solutions via pre-negotiated contracts, eliminating the need for individual vendor negotiations.
It remains unclear whether other AI firms will match OpenAI’s heavily discounted rate. GSA Federal Acquisition Service commissioner Josh Gruenbaum has publicly encouraged other American AI companies to follow OpenAI’s lead and collaborate with the agency.
Beyond ChatGPT Enterprise access, OpenAI is providing federal employees with unlimited use of advanced models for an additional 60 days. The deal also includes access to a new government user community and tailored training resources to help agencies familiarize themselves with OpenAI’s tools.
Data security is a critical concern for government agencies wary of sensitive information leaking into model training sets. TechCrunch has inquired with the GSA about safeguards for government data, including whether on-premises or private cloud deployments are being used to enhance security.
A GSA spokesperson emphasized that the government is prioritizing a security-first approach to AI adoption, ensuring sensitive data remains protected while allowing agencies to leverage AI-driven efficiencies.
OpenAI’s discounted offering arrives shortly after the Trump administration released its AI Action Plan, which aims to accelerate data center development and expand AI integration across government operations. The move also follows an executive order from Trump banning “woke AI” and mandating that AI models used in government contracts remain “ideologically neutral.”
TechCrunch has reached out to OpenAI for further details on its GSA partnership and how it plans to comply with the executive order.