OpenAI Launches 'ChatGPT Gov' For US Agencies As DeepSeek Threat Heats Up AI Race

Microsoft-backed AI firm OpenAI announced Tuesday a specialized version of ChatGPT designed exclusively for federal, state, and local U.S. government agencies, in an aim to counteract the rising competitive threat arising from lower-cost AI models.

The rollout, reported by CNBC, marks OpenAI's most significant expansion since launching ChatGPT Enterprise and arrives at a time when AI leadership is increasingly seen as a geopolitical and economic battleground.

A Secure AI Solution For Government Agencies

OpenAI CPO Kevin Weil said in a media briefing that ChatGPT Gov builds on ChatGPT Enterprise but operates within government agencies' own Microsoft Corp. MSFT Azure cloud environments.

This approach allows agencies to manage security, privacy, and compliance on their own terms.

Felipe Millon, who leads federal sales for OpenAI, said ChatGPT Gov could be particularly valuable for agencies handling sensitive data, such as defense, law enforcement, and healthcare.

Regulatory Hurdles and Trump Administration's AI Push

Despite its launch, ChatGPT Gov has not yet received accreditation under the Federal Risk and Authorization Management Program, a requirement for handling non-public government data.

A spokesperson for OpenAI told CNBC that the company is aware of the specific challenges associated with government AI use. In a blog post on Tuesday, the company noted that ChatGPT Gov will comply with its existing usage policies.

Weil indicated that certification is a "long process" with no immediate timeline but noted potential regulatory changes under the Trump administration.

"I know President Trump is also looking at how we can potentially streamline that, because it's one way of getting more modern software tooling into the government and helping the government run more efficiently," Weil told CNBC.

Weil also confirmed that he was in Washington, D.C., during the inauguration and spent time with officials from the new administration. "The focus is on ensuring that the U.S. wins in AI, and our interests are very aligned," he said.

DeepSeek's Rising Threat In The Global AI Battle

OpenAI's latest move comes just hours after DeepSeek, a Chinese AI firm, unveiled a reasoning model that has sparked concerns across the AI industry.

The DeepSeek R1 model reportedly delivers competitive performance while costing just $5.6 million to train—raising questions about whether U.S. firms, which spend billions on AI infrastructure, may be over-investing.

Weil told reporters that while DeepSeek does not change OpenAI's product road map, it serves as a reminder of how high the stakes have become.

"This is a super competitive industry, and this shows that it’s competitive globally, not just within the U.S.," he said. "We're committed to moving really quickly here. We want to stay ahead."

The growing rivalry between U.S. and Chinese AI firms has placed additional pressure on Washington to ensure the nation maintains its technological edge.

With ChatGPT Gov, OpenAI is not only strengthening its commercial reach but also embedding itself deeper into the infrastructure of the U.S. government—a move that could have long-term implications for AI policy and regulation.

Read now: