OpenAI and Anthropic have both struck separate $1-per-agency deals with the U.S. government to provide their enterprise AI models to federal operations, marking unprecedented competition in the public sector artificial intelligence market.
Under partnerships with the U.S. General Services Administration (GSA), OpenAI will supply ChatGPT Enterprise to executive branch agencies, while Anthropic has secured broader access across all three government branches—executive, legislative, and judicial—for its Claude Enterprise and Government models. Both arrangements are priced at $1 per participating agency for one year.
The deals aim to streamline government workflows including paperwork processing, tax filing operations, and passport services, helping federal employees reduce administrative burden and improve citizen service delivery times. Government officials expect the AI tools to enhance document management, automate routine tasks, and accelerate response times across departments.
However, the scope differs significantly between providers. Anthropic's offering extends beyond executive agencies to include lawmakers in Congress and judicial staff, providing broader institutional coverage. OpenAI's partnership remains limited to executive branch departments, though this still encompasses major agencies handling citizen-facing services.
Both companies recently gained approval on the GSA's authorised AI vendor list, positioning them as official government technology suppliers. The symbolic $1 pricing strategy appears designed to encourage adoption and demonstrate capabilities rather than generate immediate revenue, with both firms viewing government deployment as strategic validation for enterprise markets.
The competing deals reflect the Biden administration's broader initiative to modernise federal operations through artificial intelligence. Agencies have been exploring AI applications for citizen services, internal documentation, and administrative processes, though implementation proceeds cautiously due to security and compliance requirements.
For software developers, these partnerships signal significant enterprise validation of large language models beyond private sector applications. Government deployment at scale could provide crucial real-world testing data, potentially influencing future AI development priorities and establishing new compliance frameworks for enterprise applications.
Industry analysts suggest the parallel deals may establish important precedents for AI procurement across public sector markets globally. The direct competition between OpenAI and Anthropic in securing government contracts also highlights the strategic importance both companies place on institutional adoption as a pathway to broader enterprise acceptance.
The GSA has not disclosed specific agency participation timelines or implementation schedules. Deployment will likely vary by department based on existing infrastructure capabilities and specific operational requirements.