Federal Administration Deploys ChatGPT Across All Its Departments
Oracle, a global leader in database management and cloud computing, has found a significant role in the US government's AI adoption. The company's software, Netsuite, is the number one cloud Enterprise Resource Planning (ERP) software, integrating finance, HR, manufacturing, supply chain, sales, and procurement [1][3][5].
The U.S. General Services Administration (GSA) has partnered with OpenAI to make ChatGPT Enterprise available to federal agencies at a deeply discounted rate. This deal, announced in 2026, marks a major step forward in digital transformation for federal operations [1][2][4]. The partnership provides government users with enterprise-grade security, privacy protections, and access to advanced AI features to help improve productivity and reduce burdensome paperwork.
The OneGov strategy, a governmentwide initiative by the GSA, aims to modernize and streamline how federal agencies procure and manage common goods and services. It seeks to improve government efficiency by leveraging the U.S. government's large purchasing power, securing deep discounts, and reducing administrative complexity by enabling a "one wallet" purchasing model for the entire federal government [1][3][5]. This deal is a prime example of OneGov's goal in action, offering ChatGPT Enterprise to all federal agencies for just $1 per agency for one year [1][2][4].
Oracle's strength in cloud, ERP, and its role in Project Stargate make it a key player in this partnership. Project Stargate, a $500B initiative for building data centers, was announced by the Trump administration in January 2025 [6]. The GSA's partnership with Oracle Corporation is a central part of the US government's AI strategy.
The deal with OpenAI includes ChatGPT Enterprise service for a nominal fee of $1 for all participating U.S. federal agencies, along with unlimited use of advanced models, access to government user communities, and tailored introductory training resources [1][2][4]. This offering is significantly lower than the standard OpenAI Enterprise offer for mid-sized federal agencies, which would normally cost $60,000 monthly [7].
The GSA encourages other AI companies to follow OpenAI's lead and work with them as GSA's OneGov continues to modernize and streamline government operations. The partnership demonstrates GSA’s leadership in driving AI adoption federally by simplifying access and reducing cost barriers [1][2][3]. It also signals an open market for more AI providers to engage government through OneGov’s streamlined procurement model [1][2][3].
Oracle's presence in niche industries like healthcare software, coupled with its planned $15B capital expenditure in 2025 to expand its cloud capacities, further solidifies its position in the AI sector [2]. The company's applications in drug design, image and genomic analysis, fraud detection, and more, showcase its commitment to AI innovation [8].
The GSA manages a nationwide real estate portfolio of over 360 million rentable square feet and is a centralized procurement and shared services provider for the federal government, handling over $110B in products and services via federal contracts [9]. The GSA's focus on direct relationships with OEMs for improved outcomes aligns with Oracle's strategic positioning [4].
As the federal government continues to embrace AI technology, discussions about Oracle's stock performance in relation to AI infrastructure growth are gaining attention from analysts, particularly in light of its AI cloud business [10]. The GSA's partnership with OpenAI is a significant development in this evolving landscape, making best-in-class AI technology broadly accessible to federal employees and supporting the White House’s America’s AI Action Plan to accelerate AI adoption within government operations.
The partnership between Oracle and the U.S. General Services Administration (GSA) presents a unique business opportunity, as Oracle's expertise in cloud, ERP, and AI technology can significantly contribute to the GSA's OneGov strategy, aiming to modernize government operations.
This collaboration also opens the door for further involvements in the AI sector, as Oracle's applications in various industries, such as healthcare software, drug design, and fraud detection, demonstrate its commitment to artificial-intelligence innovation.
