OpenAI shifts to usage-based pricing for federal agencies

OpenAI has announced the end of a pilot program that allowed U.S. government agencies to use its models for $1 per year. The company is transitioning to a usage-based pricing model, which will provide federal workers access to its technology at a 50% discount from standard rates. The General Services Administration confirmed the change, stating it aims to streamline access while ensuring cost efficiency. This shift marks a significant change from the previous flat-rate model, which was initially introduced to support government operations. The new pricing structure is expected to impact how federal agencies allocate resources for AI technology. The move comes as part of broader efforts to modernize public sector technology infrastructure. OpenAI emphasized that the updated pricing model will maintain accessibility while reflecting actual usage costs. The transition is set to take effect by year-end 2026, aligning with the company's commitment to evolving its service offerings.