OpenAI Offers 50% Discount on Models to U.S. Government Agencies, Ends $1-per-Year Pilot Agreement
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The U.S. General Services Administration (GSA) announced that OpenAI will terminate its pilot program allowing government agencies to use its models for just $1 per year, switching to a usage-based billing model. Federal public officials using OpenAI's models will now receive a 50% discount off standard pricing. During the pilot period, 3.5 million federal employees used ChatGPT, saving $1.4 billion in costs. The new agreement takes effect on October 1 and will be valid for over two years, with the discount extended to state, local, and tribal governments.