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OpenAI secures $1.7B OneGov deal for government-wide ChatGPT access through 2028

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OpenAI secures $1.7B OneGov deal for government-wide ChatGPT access through 2028

OpenAI has signed a new OneGov deal with the General Services Administration (GSA) to provide ChatGPT access to all government employees through 2028. The agreement introduces discounted, consumption-based pricing for ChatGPT models, replacing the current $1 per-agency deal.

TL;DR

  • OpenAI extends ChatGPT access to 23M government employees with a new OneGov deal through 2028.
  • The deal introduces discounted, consumption-based pricing for ChatGPT models, with no platform-access fee or spend commitment.
  • The agreement includes training resources and access to Daybreak, OpenAI's cybersecurity platform, for federal agencies.

What happened

OpenAI has secured a new OneGov deal with the GSA to supply ChatGPT models to all government employees, effective after the current deal expires at the end of the month. The agreement will run until December 31, 2028, and is based on consumption, with discounted pricing for federal agencies.

Federal agencies will have access to half-off token-based usage across ChatGPT models, including those in FedRAMP-authorized environments. There will be no platform-access fee or spend commitment, allowing agencies to pay only for what they use.

The agreement also includes training and enablement resources to support agency adoption and integration of AI, while safeguarding government data. OpenAI is waiving the monthly $15 per user license fee to help government services become faster, easier, safer, and more reliable.

Why it matters

This deal expands ChatGPT access to approximately 23 million government employees, significantly increasing the number of public servants who can benefit from AI tools. It supports the government's AI initiative by enhancing federal performance and reducing administrative burden.

The consumption-based pricing model allows agencies to scale their AI usage according to their needs, making it a cost-effective solution. The inclusion of training resources and access to Daybreak, OpenAI's cybersecurity platform, further enhances the value of the deal for federal agencies.

The agreement positions OpenAI as a key player in the government AI market, with potential implications for other AI companies looking to secure similar deals. It also highlights the growing importance of AI in government operations and the need for secure, cost-effective AI solutions.

Key facts

  • The new OneGov deal will run until December 31, 2028.
  • Federal agencies will have access to half-off token-based usage across ChatGPT models.
  • There will be no platform-access fee or spend commitment, allowing agencies to pay only for what they use.
  • The agreement includes training and enablement resources to support agency adoption and integration of AI.
  • OpenAI is waiving the monthly $15 per user license fee for government employees.
  • The deal expands ChatGPT access to approximately 23 million government employees.
  • Federal agencies will have access to Daybreak, OpenAI's cybersecurity platform, for half off.
  • OneGov has achieved nearly $1.7 billion in cost savings, with $1.4 billion stemming from AI tools for about 3.5 million federal employees.

Context

This deal comes as the federal government increasingly integrates AI into its operations, with a focus on enhancing efficiency, cybersecurity, and service delivery. The OneGov strategy aims to provide agencies with advanced, AI-enabled capabilities to support their missions.

The agreement also highlights the competitive landscape for AI in the government market, with deals for Google's Gemini and Anthropic's Claude also set to expire. It remains to be seen how these companies will respond to OpenAI's extended deal with the GSA.

The growing importance of AI in government operations underscores the need for secure, cost-effective AI solutions that can be easily integrated into existing systems. This deal positions OpenAI as a key player in this market, with potential implications for the broader AI industry.

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