"What does $1 really mean? Does that mean access to the open model and that compute will be charged incrementally?"
"So, there are all of those costs in terms of training, and then once you have built the model, does the government have to pay for inference whenever federal workers and contractors use it? Is there another incremental charge?"
"The government has to be really careful and understand what the fully loaded cost is of these solutions beyond the very attractive zero to $1"
OpenAI and Anthropic offered $1-a-year AI deals to the U.S. government, but those sticker prices may hide substantial implementation expenses. Hidden costs can include model training, incremental compute billing, and per-use inference fees for federal workers and contractors. The Department of Defense awarded OpenAI a separate $200 million contract for national security AI tools, showing broader government engagement with private AI firms. Sid Ghatak served as a GSA director from 2020 to 2024, contributed to the 2023 AI executive order and the AI Maturity Model, and founded an AI-driven financial prediction company after leaving government.
Read at Business Insider
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