GSA unveils new, token-based OneGov discount with OpenAI
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OpenAI’s move from offering a flat fee to a usage-based approach comes as agreements with other AI companies like Anthropic and Gemini are set to expire at the end of the month.
OpenAI is offering agencies discounted, token-based pricing for its ChatGPT models under a new 27-month long OneGov agreement announced by the General Services Administration Thursday.
The 50% discount on token-based usage across ChatGPT models starts on Oct. 1 — a day after OpenAI’s current OneGov agreement expires.
“As agencies increasingly integrate AI into their regular operations, providing consumption-based access is the next logical step,” said Laura Stanton, acting commissioner of GSA’s Federal Acquisition Service, in a press release.
Under the new agreement, agencies will have no platform-access fee, no minimum orders, and no spend commitment, according to the release. The standard licensing fee is $15 per user per month, according to a Thursday blog post from OpenAI. The ChatGPT discount will be made available to federal, state, local and tribal agencies and accessible directly, through resellers and supported cloud marketplaces.
The agreement also includes training and enablement resources to support the adoption and integration of ChatGPT.
OpenAI expects the new agreement to expand ChatGPT access eligibility to approximately 23 million people, according to the blog post. Over one million government employees currently have access to ChatGPT.
In addition to the GSA announcement, the company said “every verified government entity will be approved for our advanced cyber-defender Daybreak Blue access, all at 50% off standard commercial pricing, with scaled training and enablement to support adoption.” Government partners can also request access to the advanced Daybreak Red cybersecurity system at standard commercial pricing.
OpenAI’s current OneGov deal, which expires at the end of the month, offers agencies ChatGPT access for $1 a year. The shift to discounted consumption-based pricing will likely include higher costs for agencies, which will have to decide whether to continue offering employees access to ChatGPT.
OpenAI is not the only model provider whose initial OneGov deal is ending. Deals offering agencies discounted access to Anthropic’s Claude and Google’s Gemini are also set to expire at the end of the month.
While it’s unclear if GSA will extend those partnerships, a GSA official has previously signaled the agency is looking to reup OneGov agreements.
“Some of the [original equipment manufacturers] have already agreed to extend some of the limited time offers, and some are looking at producing new offers for us,” Birgit Smeltzer, director of the agency’s Office of IT Products, said at the GovCIO Media & Research’s Federal AI Forum last month.
GSA officials have also signaled they want the OneGov initiative to encompass products beyond software and technology as original equipment manufacturers move to become direct contractors on the GSA Schedule.
Since its inception, the OneGov program has saved agencies approximately $1.68 billion, $1.4 billion of which stem from AI-related agreements, according to GSA’s press release.