OpenAI Offers ChatGPT Enterprise to US Federal Agencies for $1 in Landmark Deal

Reviewed byNidhi Govil

16 Sources

OpenAI has struck a deal with the US government to provide ChatGPT Enterprise to federal agencies for just $1 per agency for one year, marking a significant move in AI adoption within the public sector.

OpenAI's Groundbreaking Deal with US Government

OpenAI has announced a landmark agreement to provide ChatGPT Enterprise to more than 2 million workers in the US federal executive branch for just $1 per agency for one year 1. This deal comes on the heels of the US General Services Administration (GSA) signing a blanket agreement allowing OpenAI, Google, and Anthropic to supply AI tools to federal workers 2.

Source: Wccftech

Source: Wccftech

Features and Access

Federal employees will have access to ChatGPT Enterprise, which includes:

  • Frontier models and cutting-edge features
  • High token limits
  • Enhanced data privacy compared to consumer versions
  • Unlimited access to advanced features like Deep Research and Advanced Voice Mode for 60 days 1

OpenAI is also offering a new government user community and tailored introductory training resources to familiarize federal employees with their tools 2.

Strategic Implications

This move is seen as highly strategic for OpenAI, potentially giving them a significant advantage in the race to integrate AI tools into federal agency workflows. The company's aggressive pricing strategy puts pressure on competitors like Anthropic and Google to develop their own government strategies quickly 3.

Alignment with Trump Administration's AI Initiatives

The deal aligns with the Trump Administration's AI Action Plan, which aims to:

  • Expand AI-focused data centers in the United States
  • Bring AI tools to federal workers to improve efficiency 1
  • Boost data center buildouts
  • Integrate more AI tools into government operations 2

Security and Ideological Concerns

Source: TechCrunch

Source: TechCrunch

The integration of AI tools into government operations raises several important questions:

  1. Data Security: The GSA has emphasized a "cautious, security-first approach to AI" to protect sensitive information while enabling agencies to benefit from AI-driven efficiencies 25.

  2. Ideological Neutrality: A recent executive order labeled "Preventing Woke AI" insists that AI tools procured by the federal government not push certain ideological dogmas. It's unclear how OpenAI will address this requirement 14.

  3. Model Access and Customization: OpenAI has launched two open-weight models that can be run locally and customized, potentially allowing partnerships with government agencies requiring high levels of data security 4.

Broader Impact on AI Industry and Government Operations

This partnership could significantly shape how generative AI is deployed across various government functions, from administrative work to national security 3. The GSA reports that early AI adoption has already saved 365,000 staff hours in 2025, indicating substantial potential for efficiency gains across government agencies 5.

Future Outlook

Source: Ars Technica

Source: Ars Technica

As the US government continues to explore AI integration, several key points emerge:

  • The GSA is considering additional AI partners beyond OpenAI, Google, and Anthropic 5.
  • Government agencies have reported a growing number of AI use cases, though deployments have faced challenges such as funding concerns and regulation 5.
  • Concerns persist about AI reliability, potential biases, and lack of model transparency in government applications 5.

This landmark deal between OpenAI and the US government marks a significant step in the adoption of AI within the public sector, potentially reshaping federal workflows and efficiency while raising important questions about data security and the role of AI in governance.

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