Sam Altman is urging the federal government to embrace artificial intelligence immediately, warning that agencies need to understand and deploy AI tools to make better decisions in the coming years. At an event at OpenAI's Washington, D.C. office on Thursday, the OpenAI CEO told officials from over two dozen cabinet agencies and federal entities that the government must "keep pace" with the rapid speed of AI development.

Why Is Government AI Adoption So Urgent?

Altman framed AI adoption as essential for effective governance. He explained that the government will face "extraordinary responses and decisions in the coming few years," and that familiarity with AI technology will help officials make better choices. The message reflects OpenAI's broader strategy to position itself as a trusted partner for government agencies navigating the AI transition.

"We really want to enable the government with this technology. We think it's critical that the government keeps pace with the change and stays more capable as time goes on. We really want to be sure the government understands this technology," said Sam Altman.

Sam Altman, CEO at OpenAI

Altman added that having "familiarity and adoption of this technology" will help government officials make "much better decisions" as they confront emerging challenges. This push comes at a moment when federal agencies are still in the early stages of integrating AI into their operations.

Altman

What's the New Government AI Pricing Deal?

To make AI adoption more affordable, OpenAI and the General Services Administration (GSA) announced a new consumption-based pricing model called OneGov 2.0, which becomes available on October 1. The deal offers federal agencies a 50% discount on token-based usage of ChatGPT models, where tokens are small units of text that the AI processes. The new agreement also includes free platform access, replacing an older OneGov deal that charged $1 per year per agency.

However, procurement experts have raised concerns that agencies could face higher overall costs under the new pricing structure, since employees will likely expect continued access to ChatGPT even as the billing model changes.

How to Prepare Your Agency for AI Adoption

• Understand the Technology: Federal officials need to develop familiarity with how AI tools like ChatGPT work, what they can and cannot do, and how to integrate them into existing workflows and decision-making processes.
• Budget for Consumption-Based Costs: Agencies should plan for ongoing expenses under the new OneGov 2.0 model, which charges based on actual usage rather than a flat annual fee, and ensure budget cycles account for this emerging technology.
• Invest in AI-Ready Workforce Development: The Office of Personnel Management is emphasizing the need to train federal employees on AI tools, ensuring staff can effectively use these technologies to improve government operations and service delivery.

Felipe Millon, OpenAI's head of civilian, state and local government, expressed optimism about the new deal. He stated that OpenAI is "already hearing incredible feedback" about OneGov 2.0 and seeing "adoption grow every day," while emphasizing the company's commitment to "deliver a good deal for taxpayers".

Felipe Millon, OpenAI's head of civilian, state and local government

The Office of Personnel Management (OPM) is taking the lead on federal AI deployment. Adam Starr, OPM's chief information officer, noted that the first OneGov agreement made AI accessible to government "at a moment when many were hesitant to adopt and budget cycles had not accounted for this emerging technology." He added that the new phase "delivers some of the best AI deals in the world and keeps investing in America's AI-ready workforce".

Adam Starr, OPM's chief information officer

The timing of Altman's push reflects broader momentum in government AI adoption. A separate initiative called GenAI.mil, which provides AI tools to the Department of Defense, saw more than 2 million users in a single week, according to a top DOD official, signaling strong demand for AI capabilities across the federal government.

Altman's message to federal officials underscores OpenAI's strategy to position itself as a critical infrastructure provider for government. By offering substantial discounts and emphasizing the urgency of AI adoption, the company is working to deepen its relationship with federal agencies while framing AI as essential to effective governance in an increasingly complex world.