Amazon-backed Anthropic announced it will provide Claude AI models to all three branches of the US government for just $1 per agency. This aggressive pricing strategy escalates competition with OpenAI in the lucrative federal AI market.
The One Gov deal, confirmed by the General Services Administration, allows all three branches of the US government—executive, legislative, and judicial—to access Anthropic’s Claude AI for $1 per agency for one year. (Approval for the legislative and judicial branches is still pending.)
Reason: Official announcements state that access for Congress and the judiciary is pending approval, not finalised.
This move comes days after similar AI vendors received government approval. OpenAI’s ChatGPT, Google’s Gemini, and Anthropic’s Claude joined the approved vendor list last week.
Strategic Advantage
Anthropic’s offer extends beyond OpenAI’s executive branch focus. The company targets legislative and judicial branches as additional markets. “America’s AI leadership requires that our government institutions have access to the most capable, secure AI tools available,” said Dario Amodei, CEO of Anthropic.
OpenAI announced similar $1 pricing for ChatGPT Enterprise last week. The pricing war reflects intense competition for government contracts worth millions.
Anthropic’s Claude for Government models hold FedRAMP High certification. This meets stringent security standards for sensitive unclassified government work. The company provides technical support to help agencies integrate AI tools.
Market Impact Now
The Department of Defence already awarded contracts worth $200 million to multiple AI firms. Recipients include Anthropic, Google, OpenAI, and Elon Musk’s Xia. Lawrence Livermore National Laboratory reports that 10,000 scientists use Claude daily, according to Anthropic.
“This agreement with Anthropic is another major step in the AI-driven transformation of government — advancing efficiency, boosting productivity, and ensuring we meet the priorities laid out in President Trump’s AI Action Plan,” said Josh Gruenbaum, commissioner of the GSA’s Federal Acquisition Service.
The Washington DC Department of Health has already deployed Claude systems. The AI helps residents access health services in multiple languages.
What Business Leaders Should Know
The government’s adoption of AI signals broader enterprise acceptance. Companies using similar pricing models could gain competitive advantages in private markets. Federal validation often influences corporate procurement decisions.
Anthropic operates through partnerships with Amazon Web Services, Google Cloud, and Palantir. This multi-cloud strategy offers operational advantages over single-provider competitors.
“We believe the U.S. public sector should give you access to the most advanced AI capabilities.to tackle complex challenges, from scientific research to constituent services,” Anthropic stated in its release. “By combining broad accessibility with uncompromising security standards, we’re helping ensure AI serves the public interest.”
The promotional pricing suggests companies prioritise market penetration over immediate revenue. Successful deployments could lead to larger, full-price contracts later.
Acting GSA Administrator Michael Rigas emphasised global leadership implications. “This One Gov deal with Anthropic is proof that the United States is setting the standard for how governments adopt AI 1 boldly, responsibly, and at scale,” he said.
Google has not announced similar pricing initiatives despite joining the approved vendor list. The competitive landscape continues evolving as AI companies vie for government market share.
Anthropic concluded by encouraging industry participation. “We hope other companies will join us in taking similar steps to ensure the U.S. government has what it needs to operate as efficiently and effectively as possible,” according to the company statement.
Agencies can now procure Claude through GSA’s Multiple Award Schedule. Legislative and judicial branches must work through designated contract vehicles to access the $1 pricing terms.
