OpenAI has struck a major deal with the U.S. General Services Administration (GSA) to provide ChatGPT Enterprise to participating federal agencies for just $1 per agency for the next year, a move that could give it a major edge over competitors like Anthropic and Google in the government AI market.
The agreement follows the GSA’s recent decision to approve OpenAI, Google, and Anthropic as official vendors under its Multiple Award Schedule (MAS), a pre-negotiated federal contracting platform that allows civilian agencies to access AI services without navigating lengthy vendor-by-vendor negotiations.
While all three AI companies were added to the MAS vendor list this week, OpenAI is the first to reveal a pricing strategy and it’s aggressive. It’s unclear whether Google or Anthropic will match the symbolic $1 rate, but GSA Federal Acquisition Service Commissioner Josh Gruenbaum encouraged others to follow OpenAI’s lead, calling for more U.S.-based AI companies to “work with us” on similar initiatives.
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In addition to core access to ChatGPT Enterprise, OpenAI is offering agencies unlimited use of its advanced models for the next 60 days, along with custom onboarding, training resources, and access to a dedicated government user community to help federal employees get up to speed.
Security remains a top concern. Government agencies are particularly wary of AI tools inadvertently exposing sensitive information during training or processing. When asked about safeguards, a GSA spokesperson told TechCrunch, “The government is taking a cautious, security-first approach to AI. This ensures sensitive information remains protected while enabling agencies to benefit from AI-driven efficiencies.” It’s not yet confirmed whether OpenAI’s offering will include on-premises or private cloud options to meet strict federal security standards.
The timing of the deal is significant. It comes just weeks after the Trump administration released its AI Action Plan, which calls for expanded AI integration across government and increased investment in U.S. data center infrastructure. It also follows a recent executive order banning so-called “woke AI” and mandating that federally contracted AI systems remain “ideologically neutral.”
TechCrunch has reached out to OpenAI for details on how its models will comply with this order, and to Google and Anthropic to see whether they plan to introduce similar pricing strategies under the GSA program.
With this move, OpenAI is positioning itself not only as a commercial AI leader but also as a strategic partner in reshaping how the U.S. government uses artificial intelligence across its civilian infrastructure.
