OpenAI has extended its OneGov deal with the General Services Administration (GSA) to provide ChatGPT models to federal agencies through December 31, 2028. The new agreement offers discounted, consumption-based pricing, replacing the current $1 per-agency deal.
TL;DR
- OpenAI extends OneGov deal with GSA to provide ChatGPT models to federal agencies until 2028.
- Federal agencies will receive 50% discounts on token-based usage across ChatGPT models.
- The deal supports the government's AI initiative, enhancing federal performance and reducing administrative burden.
What happened
OpenAI and the General Services Administration (GSA) have extended their OneGov deal to supply ChatGPT models to federal agencies through December 31, 2028. The current deal, which ends at the end of the month, will be replaced by a new agreement offering discounted, consumption-based pricing according to the GSA release.
GSA Administrator Ed Forst stated that the deal supports the government's AI initiative by enhancing federal performance, reducing administrative burden, and allowing agencies to focus on delivering results that benefit the American people. OpenAI CEO Sam Altman expressed honor in continuing the collaboration, highlighting the potential for AI tools to improve government efficiency, cybersecurity, and services.
Why it matters
The extended deal provides federal agencies with significant cost savings, offering 50% discounts on token-based usage across ChatGPT models. This includes access to models in FedRAMP-authorized environments, with no platform-access fee or spend commitment, ensuring agencies only pay for what they use.
The deal underscores the growing importance of AI in government operations, with potential applications ranging from administrative efficiency to cybersecurity. However, the success of this initiative will depend on the effective implementation and adoption of these tools across various agencies.
Key facts
- The new OneGov deal will run from the end of the current month through December 31, 2028.
- Federal agencies will receive 50% discounts on token-based usage across ChatGPT models.
- There will be no platform-access fee and no spend commitment, with agencies paying only for what they use.
- Access to ChatGPT models will be available through federal, state, local, and tribal governments directly, through resellers, and supported cloud marketplaces.
- GSA Administrator Ed Forst highlighted the deal's support for the government's AI initiative.
- OpenAI CEO Sam Altman emphasized the potential for AI tools to improve government efficiency and services.
- The deal includes access to ChatGPT models in FedRAMP-authorized environments.
Context
This extension comes as AI tools are increasingly being integrated into government operations to enhance efficiency and service delivery. The deal reflects a broader trend of public-sector adoption of advanced technologies to streamline processes and improve outcomes.
The collaboration between OpenAI and the GSA highlights the growing partnership between tech companies and government agencies to leverage AI for public benefit. As AI continues to evolve, such partnerships are likely to become more common, driving innovation in both the public and private sectors.
