Anthropic’s escalation – a response to OpenAI’s attempt to undercut the competition – is a strategic play meant to broaden the company’s foothold in federal AI usage.

Anthropic has announced it will offer its Claude AI model to all three branches of the US government for $1, following OpenAI offering an almost identical deal last week. These deals both follow the General Services Administration adding OpenAI, Gemini and Anthropic to a list of approved AI vendors for the federal government.

Just a week after OpenAI offered its ChatGPT Enterprise to all US federal executive branch agencies for just $1 per year, Anthropic has made a bigger play. On Tuesday, Anthropic announced it would also provide its AI tools to government agencies for $1,