OpenAI to provide ChatGPT Enterprise to US federal agencies for $1 a year

Microsoft (NASDAQ:MSFT)-backed OpenAI is providing access to ChatGPT Enterprise to U.S. federal agencies at a nominal cost of $1 per agency for the next year.

The move follows an agreement with the U.S. General Services Administration, or GSA, OpenAI said on Wednesday.

On Tuesday, GSA had added AI services from Anthropic, Claude, Alphabet (GOOG) (GOOGL) unit Google’s Gemini, and OpenAI’s ChatGPT to its Multiple Award Schedule, or MSA. MSA are long-term government-wide contracts with commercial firms providing federal, state, and local government buyers access to commercial products and services at volume discount pricing.

OpenAI said on Wednesday that every participating U.S. federal agency will have access to its leading frontier models through ChatGPT Enterprise for a nominal fee of $1 for the next year. For an additional 60 days, OpenAI will provide unlimited use of advanced models and features, like Deep Research and Advanced Voice Mode.

The AI startup noted that ChatGPT Enterprise already does not use business data, including inputs or outputs, to train or improve OpenAI models. The same safeguards will apply to federal use.

OpenAI noted that GSA has officially issued an Authority to Use, or ATU, for ChatGPT Enterprise, showing the company’s commitment to security and compliance standards.

The company has also set up a dedicated government user community and tailored introductory trainings through the OpenAI Academy⁠.

The GSA has used its buying power before to negotiate discounts with software companies such as Adobe (ADBE) and Salesforce (CRM). However, the $1-a-year pricing from OpenAI is the deepest yet, and the first for an AI company, Bloomberg News reported, citing a GSA official with knowledge of the matter.