$1-a-year ChatGPT for agencies gives way to 50% off

Federal agencies will start paying usage-based rates for OpenAI’s models, with a 50% discount off standard prices for federal workers, the General Services Administration said. The pilot that gave agencies access for $1 per year is done.

OpenAI joined the GSA’s OneGov marketplace in August of last year, the hub where agencies buy AI software at scale. Bloomberg previously reported that the $1 terms were the steepest tech discount the government’s central purchasing arm had ever negotiated. Over that stretch, the GSA counts $1.4 billion in cost savings from ChatGPT and other AI models.