OpenAI offers 'premium' ChatGPT to US government agencies for just $1

Beyond the symbolic $1 pricing, OpenAI is also offering unlimited usage of its advanced models for the first 60 days of the agreement.

By  Storyboard18| Aug 7, 2025 3:41 PM
Beyond the symbolic $1 pricing, OpenAI is also offering unlimited usage of its advanced models for the first 60 days of the agreement.

OpenAI has taken a bold step in expanding its footprint within the US federal government by offering its enterprise-grade AI product to public agencies for a token fee of just $1 per agency over the next year.

The initiative is part of a new agreement between OpenAI and the US General Services Administration (GSA). Through the deal, OpenAI will provide access to ChatGPT Enterprise, its most advanced commercial AI offering, at a nominal cost via the GSA’s Multiple Award Schedule (MAS)—a centralised contracting vehicle designed to simplify technology procurement for civilian federal agencies, as per a report by TechCrunch.

With this move, OpenAI positions itself in direct competition with other approved AI vendors such as Google and Anthropic, who were also recently added to the MAS list. This aggressive pricing strategy could significantly accelerate the deployment of OpenAI’s tools across federal departments.

In a statement, Josh Gruenbaum, Commissioner of the GSA’s Federal Acquisition Service, praised the decision, calling on other AI vendors to “follow OpenAI’s lead and work with us.”

Beyond the symbolic $1 pricing, OpenAI is also offering unlimited usage of its advanced models for the first 60 days of the agreement. The package includes access to a dedicated user community for government employees and tailored onboarding resources to help agencies deploy the technology effectively and securely, as per the TechCrunch report.

However, the rollout is not without scrutiny. Data privacy and security concerns remain front and centre, particularly regarding how sensitive government data will be handled. A GSA spokesperson stated that a “cautious, security-first approach to AI” is being taken, including the consideration of private cloud or on-premises deployments to ensure regulatory compliance.

The announcement comes amid a broader government push to expand AI capabilities. In recent weeks, the Trump administration unveiled an AI Action Plan to accelerate AI adoption within federal agencies, including new investments in data centre infrastructure. This was followed by an executive order from President Trump banning the use of what he called “woke AI”, and calling for ideological neutrality in AI tools developed or contracted by the government.

First Published onAug 7, 2025 3:41 PM

GCPL trims consolidated ad spends by 5.15% to Rs 313 crore in Q1 FY26

GCPL clocked a profit of Rs 452.45 crore in Q1 FY26 compared to Rs 450.69 crore in the same period year ago period.