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.

(Reuters) -Amazon.com-backed Anthropic said on Tuesday it will offer its Claude AI model to the U.S. government for $1, joining a growing list of artificial intelligence startups proposing lucrative deals to win federal contracts.