Ever since the launch of ChatGPT, AI companies have been racing to gain a foothold in government in more ways than one. Most recently, that’s meant luring government users with attractive low prices for their products. Within the last week, both OpenAI and Anthropic have introduced special prices for government versions of their generative AI chatbots, ChatGPT and Claude, and xAI announced its Grok for Government in mid-July. OpenAI and Anthropic are both offering their chatbots to federal agencies for one year for a nominal price of $1. Already, Anthropic, OpenAI, Google, and xAI have each secured contracts that could be worth up to $200 million to help modernize the US Defense Department.