Trump Admin Inks $1 ChatGPT Deal to Modernize US Agencies

- U.S. signs $1 ChatGPT deal to revamp federal agencies - This landmark AI adoption is part of Trump’s tech leadership plan On August 6, 2025, the U.S. General Services Administration (GSA) announced a groundbreaking collaboration with OpenAI. The GSA will provide ChatGPT Enterprise to all federal agencies for a nominal fee of $1 per agency for one year, an initiative that is a key pillar of the GSA’s OneGov Strategy. This strategy focuses on transforming government operations and advancing U.S. leadership in artificial intelligence, aligning with the Trump Administration’s AI Action Plan. In addition to access to ChatGPT Enterprise, the partnership includes educational resources from the OpenAI Academy and a dedicated government user community. According to OpenAI CEO Sam Altman, the initiative gives federal employees a chance to harness cutting-edge AI tools, which he believes will improve public service delivery for American citizens. For the first 60 days of the agreement, OpenAI will also grant unlimited access to its advanced models and premium features. This announcement follows a GSA move in 2024, when it added OpenAI, Google, and Anthropic to its Multiple Award Schedules (MAS) to streamline AI procurement for all levels of government. The GSA also issued an Authority to Use (ATU) for ChatGPT Enterprise, certifying its compliance with government security and privacy standards. Crucially, OpenAI assured agencies that its enterprise solution does not use customer data for model training, which helps alleviate data privacy concerns. Federal agencies already see promising results from integrating AI tools, as a GSA spokesperson noted significant reductions in staff hours during 2025. This success signals potential applications for AI, such as automating routine tasks, enhancing data analysis, strengthening cybersecurity, and enabling real-time language translation. However, this initiative has sparked debate over centralized AI use in governance. On August 6, Cointelegraph reported that critics have flagged several concerns, including issues with data privacy, civil liberties, long-term oversight, and cybersecurity vulnerabilities. These apprehensions are not unprecedented, as similar concerns led the U.S. Space Force to temporarily halt its adoption of generative AI in 2023. This AI endeavor marks a pivotal moment for federal agencies, which must now balance opportunities for modernization with the need for complex ethical and operational safeguards.