Anthropic’s escalation — a response to OpenAI’s attempt to undercut the competition — is a strategic play meant to broaden the company’s foothold in federal AI usage.

The move comes almost immediately after OpenAI offered its ChatGPT enterprise for all US federal government workers for $1 per year per agency, as the firms look to undercut each other - and presumably create a reliance within the public sector, which is likely to use AI tools to help streamline their work and save money on admin costs.

Anthropic has announced it will offer its Claude AI model to all three branches of the US government for $1, following OpenAI offering an almost identical deal last week. These deals both follow the General Services Administration adding OpenAI, Gemini and Anthropic to a list of approved AI vendors for the federal government.