OpenAI is aggressively moving to expand its presence within US federal agencies—by practically giving away its AI tools. The company has struck a deal with the US General Services Administration (GSA) to offer ChatGPT Enterprise access to participating agencies for just $1 per agency for the next year.
The announcement positions OpenAI as a direct challenger to rivals like Google and Anthropic, all of whom were recently added to the GSA’s list of approved AI vendors. These companies can now offer their services to civilian federal agencies through the Multiple Award Schedule (MAS)—a streamlined contracting platform that allows agencies to purchase AI tools without individual negotiations.
GSA Federal Acquisition Service commissioner Josh Gruenbaum applauded OpenAI’s move and urged other US AI firms to “follow OpenAI’s lead and work with us.”
As part of the deal, OpenAI is also providing unlimited use of its advanced models for an initial 60-day period. Federal employees will gain access to a dedicated government user community and customised onboarding resources to help them understand and safely deploy the tools.
Data privacy and security remain a key concern. A GSA spokesperson told TechCrunch that the government is taking a “cautious, security-first approach to AI,” aiming to keep sensitive information protected. Questions remain around deployment strategies—such as whether OpenAI’s models will run on private clouds or on-premises infrastructure to ensure compliance.
This near-free offer comes just weeks after the Trump administration released its AI Action Plan to boost AI adoption across federal agencies, including investments in data centres. It also follows an executive order from President Trump banning the use of “woke AI” and mandating ideological neutrality in government-contracted AI systems.
TechCrunch first reported the terms of OpenAI’s federal deal and is awaiting further comment from both OpenAI and the GSA on implementation details and compliance with the new executive order.
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