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OpenAI Announces Massive US Government Partnership

by Priya Shah – Business Editor

Government Agencies Gain Access to Advanced AI Models

OpenAI Partners with US Government to Deploy ChatGPT Across Federal Workforce

Federal employees will soon have access to cutting-edge artificial intelligence tools under a new initiative. OpenAI is making its advanced models available to government agencies for a nominal fee, aiming to enhance public service delivery.

A Strategic Alliance for Public Service

OpenAI is collaborating with the US government, specifically the General Services Administration (GSA), to provide federal employees with access to its leading frontier models. This landmark agreement allows government agencies to utilize OpenAI’s technology for just $1 over the next year, as announced on Wednesday.

“One of the best ways to make sure AI works for everyone is to put it in the hands of the people serving the country. We’re proud to partner with the General Services Administration, delivering on President Trump’s AI Action Plan, to make ChatGPT available across the federal government, helping public servants deliver for the American people.”

Sam Altman, CEO of OpenAI

This partnership signifies months of dedicated engagement by OpenAI’s leadership, including CEO Sam Altman, with government officials. Company executives have been actively promoting their AI tools to various federal bodies, including the Food and Drug Administration, since at least May.

Government Embraces Generative AI

The GSA recently expanded its federal purchasing list to include three new AI models: Anthropic’s Claude, Google’s Gemini, and OpenAI’s ChatGPT. This move aligns with President Trump’s AI Action Plan, which emphasizes accelerating AI innovation within the United States.

In parallel, OpenAI released two open-weight models, its first since 2019. These models can be deployed locally and customized, potentially addressing data security requirements for government entities.

Accelerating AI Adoption in Government

The initiative follows efforts to streamline government operations through AI. The Department of Government Efficiency (DOGE), under Elon Musk‘s purview, has been instrumental in advancing government AI projects, including the development of the GSAi chatbot. A DOGE operative has also been reportedly using AI tools to revise regulations within the Department of Housing and Urban Development.

American technology giants are increasingly seeking to engage with the US government. Previously, Sam Altman was present when President Trump announced a significant data center infrastructure project, dubbed Stargate, from OpenAI.

Government agencies possess vast datasets that could prove valuable for AI development. OpenAI has stated that interactions with federal employees will not be used for ChatGPT’s training data. Modernizing operations is a key driver for agencies, with generative AI seen as a pathway to enhanced efficiency. The Department of Defense, a major potential client, has a proposed budget increase of 13.4 percent for fiscal year 2026.

The US government’s commitment to AI integration is reflected in its broader technological modernization efforts. For instance, the Federal Aviation Administration is implementing AI to improve air traffic control systems, aiming to reduce delays and enhance safety. The FAA anticipates that AI could improve operational efficiency by up to 15% in the coming years (FAA, 2024).

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