TLDR
- OpenAI will provide ChatGPT Enterprise to all US federal agencies for just $1 each through next year
- The deal supports the White House’s AI Action Plan to establish US leadership in AI development
- Federal agencies will gain access to OpenAI’s frontier models and features like Advanced Voice Mode
- OpenAI is strengthening government ties and will open its first Washington, D.C. office early next year
- The company recently secured a $200 million contract with the Department of Defense
In a major development for artificial intelligence in government operations, OpenAI has announced a deal to provide its ChatGPT Enterprise platform to all US federal agencies for the token price of $1 each. The agreement, announced Wednesday by the US General Services Administration (GSA), aims to modernize government operations by integrating AI into federal workflows.
The deal comes as part of President Donald Trump’s administration’s push to make the United States the global leader in artificial intelligence. The agreement directly supports the White House’s AI Action Plan, a three-pillar strategy recently disclosed by the administration.
Under the terms of the arrangement, US government agencies will gain access to OpenAI’s frontier models through ChatGPT Enterprise. The company will also offer additional features like Advanced Voice Mode for a 60-day period.
“Helping government work better – making services faster, easier, and more reliable—is a key way to bring the benefits of AI to everyone,” OpenAI stated in a blog post about the partnership.
The move effectively makes the technology available to the federal executive branch workforce at virtually no cost.
Expanding Government Partnerships
OpenAI has been working to strengthen its ties with lawmakers and regulators in recent months. The company plans to open its first office in Washington, D.C. early next year, highlighting its focus on government relationships.
This isn’t OpenAI’s first government contract. In June, the company launched a specialized offering called “OpenAI for Government” and secured a contract worth up to $200 million with the US Department of Defense.
The timing of this announcement comes as OpenAI is reportedly in talks with investors about a potential stock sale that could value the company at approximately $500 billion. This follows a $40 billion funding round in March that valued the company at $300 billion – the largest amount ever raised by a private tech company.
Privacy and Security Concerns
Despite the government’s modernization efforts, the integration of AI into federal agencies has raised concerns among critics. Some worry about the implications for privacy, data protection, cybersecurity, and civil liberties.
In 2023, the US Space Force temporarily paused the use of generative AI tools, including ChatGPT, due to cybersecurity concerns over sensitive data critical to national security. Lisa Costa, Space Force’s deputy chief of space operations for technology and innovation, noted that AI service providers would need to improve their data protection standards before widespread adoption by the military.
Public concerns about automating government work with AI have grown as the industry develops. Large language models and AI chatbots collect vast amounts of user data from the internet and conversations with users, which is then used to train the AI systems.
The cybersecurity risks associated with storing information on centralized servers have prompted privacy concerns from users, tech executives, and civil liberties activists. OpenAI CEO Sam Altman recently warned that ChatGPT conversations could potentially be used as evidence against users in court, as AI conversations do not have privacy protections and are subject to government search and seizure laws.
Sweden’s Prime Minister Ulf Kristersson recently faced criticism after acknowledging that he had consulted AI for policy decisions. A spokesperson clarified that the prime minister did not use AI to discuss classified matters or sensitive information related to national security.
The $1 per agency price tag makes this deal largely symbolic, emphasizing the government’s commitment to advancing AI adoption rather than representing a major revenue stream for OpenAI. The federal government’s embrace of ChatGPT Enterprise represents one of the most extensive adoptions of generative AI technology by a national government to date.
