Link: AI companies are chasing government users with steep discounts

OpenAI and Anthropic have introduced low-cost government versions of their AI chatbots, leveraging aggressive pricing to penetrate the federal market.

Anthropics' offering covers all three government branches, whereas OpenAI's ChatGPT targets only the executive branch with its budget-friendly introductory deal.

Such pricing strategies mirror tactics used by companies like Slack, aimed at maximizing user adoption before potentially increasing prices.

This approach could ensure a dependable and vast user base, consequently generating significant long-term revenue since the US government invests over $100 billion annually in IT and cybersecurity.

Moreover, familiarity induced by these tools might influence regulatory discussions, making federal employees potentially more reliant on and favorable towards these AI services.

Ultimately, these strategies not only aim to secure hefty contracts, like the $200 million ones with the US Defense Department, but also potentially steer regulatory frameworks by integrating AI deeply into government operations. #

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Yoooo, this is a quick note on a link that made me go, WTF? Find all past links here.