OpenAI Overhauls U.S. Government AI Deal: Ends $1 Pilot, Moves to Usage-Based Pricing With 50% Discount

The U.S. General Services Administration (GSA) announced on September 10 that OpenAI will end its pilot program that allowed government agencies to use its models for $1 per year. Under the new arrangement, agencies will be charged based on usage, with federal employees eligible for a 50% discount off standard pricing.

The new agreement takes effect on October 1 and will remain valid for more than two years. It also extends to state, local, and tribal governments, broadening access beyond the federal level.

OpenAI joined GSA's OneGov procurement platform in August 2025, which enables federal agencies to purchase AI software in bulk. The original $1-per-year terms were described as the steepest technology discount ever negotiated by the U.S. central procurement office. GSA said that 3.5 million federal employees used ChatGPT during the pilot, saving an estimated $1.4 billion in costs.

While pricing will rise compared with the $1 pilot, the 50% discount is still expected to help government agencies test and deploy AI tools at scale, including OpenAI's new model GPT-6 Astra. OpenAI announced on September 10 that the discount would no longer be limited to the federal government.