OpenAI Introduces 50% Government Discount, Replacing the $1 Per Year Deal
OpenAI has announced a 50% discount on its AI models for United States government agencies, effectively ending its previous $1 per year pricing agreement.

Key takeaways · 2
- 01
OpenAI ends its previous $1 per year pricing for US government agencies.
- 02
US agencies will now receive a 50% discount on OpenAI models.
New Pricing Structure
Bloomberg Technology reported on September 10, 2026, that OpenAI is implementing a new public sector pricing strategy. [1] The company is providing United States government agencies with a direct 50% discount on its artificial intelligence models. [1] This updated framework marks the official conclusion of a previous arrangement where these federal organizations paid exactly $1 per year for access. [1]
What it means
The transition from a near-free $1 per year model to a 50% discount suggests OpenAI is moving toward monetizing its government contracts more aggressively, even while offering significant subsidies. While the source does not detail the previous usage caps or specific models included, a shift to percentage-based discounting typically indicates a move toward usage-based billing rather than flat-rate token access. What the sources don't address: How much revenue OpenAI expects to generate from this new pricing model, or which specific agencies will be impacted.
The change in OpenAI's pricing strategy for government entities indicates a shift toward more sustainable revenue models for public sector deployments.
Why it matters
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Start freeHow this developed
10 September 2026
OpenAI Introduces 50% Government Discount, Replacing the $1 Per Year Deal
10 September 2026
Event created from source cluster.
Sources
- OpenAI Gives US Agencies 50% Off Models, Ending $1 Per Year DealBloomberg Technology