US Government Loses $1 ChatGPT Access as OpenAI Changes Pricing
What Happened
OpenAI is ending its highly publicized $1-per-year AI pilot program for U.S. government agencies and replacing it with a usage-based pricing model offering a 50% discount to federal workers. The original deal, negotiated through the US General Services Administration (GSA), enabled widespread adoption of ChatGPT across government agencies. According to the GSA, about 3.5 million federal employees used ChatGPT during the pilot, generating an estimated $1.4 billion in cost savings.
Key Takeaways
While agencies will no longer receive near-free access, the new discounted pricing aims to help governments continue expanding AI usage, including OpenAI's newer models. The move suggests OpenAI is shifting from a subsidized adoption strategy to a longer-term commercial model while maintaining a strong foothold in the public sector. The new agreement takes effect on October 1 and will also be expanded to state, local, and tribal governments.