Will OpenAI Partner With the UK Government on ChatGPT Plus?

According to sources close to the UK government, Sam Altman, CEO of OpenAI, is hollding discussions with Technology Secretary Peter Kyle, in which a sweeping deal to provide access to ChatGPT Plus all UK residents was mooted.
The potential agreement, which would have been valued at as much as Β£2bn (US$3.2bn), was floated during broader collaborative talks in San Francisco earlier this year.
Two sources with direct knowledge of the meeting confirm the proposal was discussed as part of OpenAI's growing engagement with the UK government.
However, those close to the discussions indicated that Peter Kyle never seriously considered the ambitious plan, primarily due to its enormous cost.
The relationship between OpenAI and the UK government
The talks occurred against a backdrop of deepening ties between OpenAI and the UK government. Kyle dined with Altman on multiple occasions in March and April, according to government transparency data.
In July, the pair signed a non-binding agreement allowing OpenAI to explore AI applications within UK public services.
This memorandum of understanding could potentially grant OpenAI access to government data whilst enabling its software deployment across education, defence, security and justice systems.
This will come as no surprise, as Prime Minister Sir Keir Starmer has publicly stated his intention to revolutionise the UK's public services using AI. In fact, AI has been a central part of the government's strategy since Labour was elected last summer.
Peter Kyle's role as Technology Secretary
Peter Kyle has long been a champion of AI. The minister has openly embraced AI tools in his own work, seeking ChatGPT's guidance on various professional matters from everything to why British businesses might be reticent about adopting AI, to which podcasts he should consider appearing on.
"ChatGPT is fantastically good and where there are things that you really struggle to understand in depth, ChatGPT can be a very good tutor for it," Kyle told PoliticsHome in January.
As Technology Secretary, Kyle has been given a mandate to oversee the UK's AI strategy for the next few years, with the aim of making the country one of the world's most advanced AI economies.
"I want us to be at the very forefront of it because those countries will get to shape how it goes, how it is used and deployed," he explains on the Rest is Politics podcast recently.
A complex, competitive market
The UK is one of OpenAI's top five markets for paid ChatGPT subscriptions, with millions already using the free version daily.
ChatGPT Plus, priced at US$20 monthly, offers users faster response times and priority access to new features.
OpenAI has pursued similar government partnerships globally, recently securing an agreement with the United Arab Emirates to "enable ChatGPT nationwide" across transport, healthcare and education sectors.
The UK government has simultaneously courted other AI giants, striking separate deals with Google and Anthropic earlier this year.
Are the people of the UK onboard with AI?
The closer government-AI industry relationships have drawn criticism from creative sectors.
Artists including Elton John and Tom Stoppard have opposed proposed copyright law changes that would permit AI companies to train models using copyrighted material without explicit permission.
UKAI, representing the UK's AI industry, has argued that government focus remains too heavily concentrated on major tech companies rather than smaller domestic players.
An OpenAI spokesperson emphasised the company's commitment to democratising AI access, stating: "In line with the government's vision of using this technology to unlock economic opportunity for everyday people, our shared goal is to democratise access to AI."
The Department for Science and Technology confirmed it had not progressed any proposals for nationwide ChatGPT Plus access.

