OpenAI Ends $1 Government Pilot, Shifts to 50% Usage-Based Discount

OpenAI is ending its $1 per year pilot program with the US General Services Administration (GSA) and transitioning to a new agreement that offers a 50% usage-based discount. Taking effect on October 1 for over two years, this new pricing extends beyond federal agencies to state, local, and tribal governments. The move signals a shift from cheap initial trials to scaled, long-term adoption of AI across all levels of US government. It also solidifies OpenAI's foothold in public sector procurement at a time when rival Anthropic faces legal and regulatory hurdles with federal defense agencies. During the $1 pilot program via GSA's OneGov platform, 3.5 million federal workers used ChatGPT, saving an estimated $1.4 billion in operational costs. The updated 50% discount covers OpenAI's latest tools, including its GPT-6 Astra reasoning model.