The General Services Administration is ending its $1-per-year pilot program with OpenAI and shifting to a consumption-based pricing model that will charge federal agencies roughly half of commercial rates, the agency announced Thursday. The new 27-month agreement takes effect October 1, 2026, and eliminates platform-access fees, minimum orders, and spending commitments.
Under the deal, structured through GSA's OneGov marketplace, agencies pay only for tokens consumed. Access extends beyond the federal executive branch to cover legislative and judicial agencies, as well as state, local, and tribal governments.
"Giving public servants secure access to the best AI tools can help government be more efficient, strengthen cybersecurity, and improve the services people rely on," OpenAI CEO Sam Altman said in a statement. GSA Administrator Edward C. Forst said the agreement provides "a secure, governmentwide framework that helps agencies adopt AI at scale and strengthens their ability to carry out mission-critical work."
What changes under the new terms
The shift from flat-fee to usage-based pricing reflects the next phase of GSA's OneGov AI strategy. Since its launch, OneGov has generated approximately $1.68 billion in cost savings for the federal government, with roughly $1.4 billion tied to AI agreements that expanded access for about 3.5 million federal employees.
OpenAI joined the OneGov marketplace in August 2025 at $1 per year - the largest concession GSA had ever extracted from a technology vendor, according to Bloomberg. Days later, rival Anthropic PBC agreed to the same terms. For agencies and contractors working through this transition, understanding the mechanics of AI for Government procurement and deployment has become part of the operational baseline.
The Anthropic dispute
Anthropic's federal relationship has since become entangled in a separate dispute. Defense Secretary Pete Hegseth labeled the company a supply-chain risk, and President Donald Trump directed agencies to stop using Anthropic's tools. Anthropic sued the U.S. government in response.
A California judge issued a preliminary injunction blocking the ban, and GSA reversed a directive to remove Anthropic from its AI platform, according to Bloomberg. Litigation in both California and Washington remains ongoing. OpenAI said in February that it had reached a separate agreement to provide its tools to the Pentagon.
For teams evaluating vendor options, OpenAI Courses can help staff build the practical skills needed to work with these models under the new pricing structure.
Why this matters for government professionals
The move to token-based pricing means agencies no longer need to negotiate flat-fee access or commit to minimum spend. Budget officers and IT leads should prepare for variable monthly costs tied to actual usage, which rewards disciplined deployment and may penalize experimentation that runs unchecked. The October 2026 start date gives procurement teams a runway to adjust forecasts and internal chargeback models before the new terms take effect.
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