US Tightens AI Contracts: Give Government "Any Lawful" Use
Draft GSA guidance would force AI companies to grant the US government broad usage rights over their models.
The US General Services Administration has drafted new guidance that could fundamentally reshape how AI companies do business with the federal government.
The draft rules would require AI vendors bidding on civilian contracts to permit "any lawful" use of their models by government agencies. That's a sweeping demand — essentially telling companies they can't wall off specific capabilities or restrict how their tools get deployed across federal operations.
The Trump administration's move signals a harder negotiating stance with AI providers. Instead of bespoke licensing agreements with guardrails set by the vendor, the government wants broad, unrestricted access baked into contract terms from the start.
For AI companies, this creates a real tension. Many have built their business models around usage restrictions and tiered access. Complying could mean surrendering significant control over how their technology gets used at scale.