tech

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Anthropic offers Claude AI to federal agencies for $1

Earlier this month, OpenAI announced that it was offering ChatGPT Enterprise to US federal agencies for $1 in a yearlong deal with the General Services Administration.

Today, Anthropic is following suit with a similar deal. Claude for Enterprise and Claude for Government will be made available through the General Services Administration for $1 per agency across all three branches of government for “sensitive unclassified work.”

The Financial Times is reporting that Google was in talks to mint a similar deal.

Anthropic, OpenAI, xAI, and Google have all received contracts from the Department of Defense for up to $200 million each to use those companies’ AI for national security and defense applications. Late last year, Anthropic announced a partnership with Palantir to deploy the company’s Claude tool to the “defense and intelligence communities” inside the US government.

The low, low price that these companies are offering government agencies seems intended to induce workers to rely on AI tools before converting that reliance to juicy federal contracts when the limited-time offer expires. The promotional strategies with federal agencies come as tech companies and startups are desperately seeking a path to profitable AI while they burn piles of cash building infrastructure.

Offering expanded Claude access across all three branches of government

Offering expanded Claude access across all three branches of government

The Financial Times is reporting that Google was in talks to mint a similar deal.

Anthropic, OpenAI, xAI, and Google have all received contracts from the Department of Defense for up to $200 million each to use those companies’ AI for national security and defense applications. Late last year, Anthropic announced a partnership with Palantir to deploy the company’s Claude tool to the “defense and intelligence communities” inside the US government.

The low, low price that these companies are offering government agencies seems intended to induce workers to rely on AI tools before converting that reliance to juicy federal contracts when the limited-time offer expires. The promotional strategies with federal agencies come as tech companies and startups are desperately seeking a path to profitable AI while they burn piles of cash building infrastructure.

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Anthropic and OpenAI are racing to go public this year, and all eyes are on how long they can sustain burning billions in cash before they achieve something that looks like a viable business.

Investors have seen both companies’ projections, and there’s no sign of slowing down, according to a report from The Wall Street Journal.

OpenAI expects to burn tens of billions per year for the rest of the decade, peaking at $85 billion in 2028, before achieving profitability in 2030, per the report.

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OpenAI expects to burn tens of billions per year for the rest of the decade, peaking at $85 billion in 2028, before achieving profitability in 2030, per the report.

Anthropic will also continue to burn cash for years — far less than OpenAI — but it projects that 2026 will be its biggest year of losses. It targets 2029 for profitability, fueled by exploding enterprise revenue.

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