- Law4Startups
- Posts
- ⚖️ FOLLOW UP: OpenAI is giving access to the US Government for $1 per agency
⚖️ FOLLOW UP: OpenAI is giving access to the US Government for $1 per agency
Liam Gill
August 22, 2025
Federal AI Race Heats Up
The U.S. government’s move to add OpenAI, Anthropic, and Google DeepMind to the General Services Administration’s (GSA) approved vendor list has sparked a race among AI firms to dominate federal adoption. Following OpenAI’s $1-per-year offer to executive branch agencies, Anthropic has escalated the competition by offering its Claude AI models at the same nominal rate to all three branches of government, including the legislative and judicial arms. This strategic maneuver positions Anthropic to expand its footprint beyond the executive branch, providing both enterprise and government-specific versions of Claude with FedRAMP High certification, ensuring compliance with stringent federal security standards.
Don't miss out on this modern-day gold rush - a 108 grams per tonne gold assay has just been recorded. This company holds 29,000 hectares (over 71,000 acres) in the heart of a modern-day gold rush. Exploration targets have already been identified as a result of locals' artisanal mining (a recent 108 grams per tonne gold assay has been recorded) and funds have just been raised for an initial 10,000 metre (over 32,000 feet) drill program seeking to unlock the potential for a multi-million ounce gold deposit. Find out more.
Insights for Founders and Startups
Anthropic’s multicloud deployment strategy—allowing Claude to operate on AWS, Google Cloud, and Palantir platforms—demonstrates the growing importance of infrastructure flexibility and data sovereignty in government contracts. Startups should note that federal agencies increasingly value security certifications like FedRAMP High and operational flexibility when evaluating AI vendors. Furthermore, government adoption of AI for a wide range of functions, from scientific research at national labs to public health services, highlights new opportunities for startups to provide specialized tools, workflow integrations, or complementary AI services tailored to public sector needs.
Strategic Takeaways for Startup Planning
Startups eyeing government contracts should prioritize compliance readiness, data security, and infrastructure versatility. Understanding the nuances of FedRAMP certifications and multicloud deployment can create competitive advantages when pitching to agencies wary of single-vendor lock-in. Additionally, offering clear integration support and demonstrating the ability to handle sensitive workflows can be a differentiator. While pricing may be temporarily discounted by larger players like OpenAI and Anthropic, smaller AI startups can compete by emphasizing agility, specialized expertise, and localized compliance knowledge, carving out niches in federal AI adoption.
In addition to our newsletter we offer 60+ free legal templates for companies in the UK, Canada and the US. These include employment contracts, investment agreements and more