Federal agencies can buy ChatGPT for $1; New deal with AWS brings $1B in potential credits for agencies

The General Services Administration has been on a roll lately, negotiating what it calls OneGov agreements with some of the federal government’s biggest IT vendors. On Thursday, GSA announced it has negotiated a governmentwide purchasing agreement with Amazon Web Services that could save agencies up to $1 billion through credits for AWS services. The deal is the latest in a flurry of OneGov agreements GSA has initiated under the Trump administration to consolidate and centralize IT purchasing at scale and unlock greater, consistent savings for civilian agencies, rather than agencies negotiating one-off contracts with vendors themselves. As part of the governmentwide package, AWS has come to the table offering direct incentive credits that could total up to $1 billion in value for cloud services, modernization support and training. The deal will run through Dec. 31, 2028. In addition to streamlining federal IT procurement by working as a single, unified federal entity, GSA’s OneGov initiative also aims to work directly with technology developers themselves, rather than intermediaries such as value-added resellers. As such, GSA touts the potential for additional savings by contracting directly with the cloud giant for its services.

That deal comes just a day after GSA announced a similar one with OpenAI that will offer its ChatGPT tool to federal agencies for just $1. It marks the artificial intelligence firm’s latest effort to expand use of its generative AI chatbot across the federal government. Like the AWS deal, GSA said the agreement with OpenAI supports the White House’s AI Action Plan, which encourages widespread adoption of AI in the federal government. Through the partnership, OpenAI’s ChatGPT Enterprise product can be purchased by federal agencies for $1 per agency for one year. GSA called this a “deeply discounted rate.” Commenting on the deal, OpenAI CEO Sam Altman said in a statement: “One of the best ways to make sure AI works for everyone is to put it in the hands of the people serving the country.”

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