ByAnish
Sam Altman’s $2.7B ChatGPT+ UK Deal: Why It Didn’t Happen
A $2.7 Billion AI Proposal That Could Have Changed Everything
OpenAI CEO Sam Altman recently discussed a bold deal with UK Technology Secretary Peter Kyle: giving all 69.6 million UK residents free ChatGPT+ subscriptions.
The plan carried an estimated cost of £2 billion ($2.7 billion) to the UK government. ChatGPT+ typically costs $20 per month, offering:
- Faster responses
- Priority access during peak hours
- Early access to new AI features
If approved, this would have marked the largest AI democratization project in history.
The Numbers Don’t Add Up
A quick calculation shows a mismatch.
- $20 × 69.6M UK residents = ~$1.4B annually
- Reported deal: $2.7B
The $1.3B gap suggests the proposal included either:
- Additional AI services, or
- A government markup for infrastructure and deployment
This discrepancy raised transparency concerns around pricing.
Why the UK Government Rejected the Plan
Despite his pro-AI stance, Peter Kyle never seriously considered the proposal. The reasons were clear:
- Budget Priorities – Competing needs like healthcare, police, and education
- Public Scrutiny – Justifying billions on AI when public services face funding cuts
- Feasibility – Technical challenges of scaling premium AI nationwide
Instead of universal subscriptions, the UK opted for targeted partnerships with OpenAI.
UK–OpenAI Collaboration: A More Practical Approach
In July 2025, Kyle signed a Memorandum of Understanding (MoU) with OpenAI. Key details:
- Exploring AI use in education, defense, security, and justice
- Potential access for OpenAI to government data
- Expansion of OpenAI’s London office (100+ employees and growing)
This reflects the UK’s broader AI Opportunities Action Plan, backed by £2 billion in funding.
Global Context: OpenAI’s “Countries” Initiative
The UK isn’t alone. OpenAI has launched its “OpenAI for Countries” initiative:
- UAE: Signed first national AI deal (focus on infrastructure, not free subscriptions)
- USA: ChatGPT Enterprise for just $1 per agency annually (a massive discount)
These moves show OpenAI’s push to become embedded in government systems worldwide.
What This Means for AI Access
The failed UK deal raises critical questions:
- Should governments fund universal AI access like utilities?
- How much is too much for AI public spending?
- Can AI truly become a democratized public good?
While the free ChatGPT+ for all plan didn’t happen, it signals where global AI policy is heading—toward balancing innovation with fiscal responsibility.
Final Takeaway
The UK rejected the $2.7B free ChatGPT+ proposal, but the story highlights a new era of government-AI negotiations.
✅ Sam Altman’s pitch shows ambition to democratize AI
✅ Peter Kyle’s response shows pragmatism in protecting taxpayers
✅ The ongoing MoU keeps AI integration alive in public services
As AI adoption accelerates, this debate will shape how nations fund, regulate, and provide access to transformative technologies.
