CSU renews contract with OpenAI, meaning three more years of ChatGPT

CSU renews contract with OpenAI, meaning three more years of ChatGPT

CSU renews contract with OpenAI, meaning three more years of ChatGPT

https://laist.com/news/education/csu-renews-openai-contract-chatgpt-artificial-intelligence

Publish Date: 2026-05-21 20:38:00

Source Domain: laist.com

California State University officials have renewed the system’s contract with OpenAI, a leading generative artificial intelligence company that has established business deals with universities across the country.

Under the renewed contract, the CSU will pay $13 million a year to use OpenAI’s ChatGPT college product for three years, “with the option to cancel annually with advance notice,” said CSU spokesperson Amy Bentley-Smith. The new agreement also expands access to 675,000 users (up from 500,000) and enables students to continue using the product up to one year after graduation.

University officials say providing access to quality AI tools is an equity issue and that the CSU needs to prepare students for the future.

But when ChatGPT was first implemented across the system, faculty raised concerns about AI’s toll on the environment. They also noted that chatbots have been known to generate inaccurate information and can have built-in racial and gender biases. Some students and faculty still refuse to use it.

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According to Bentley-Smith, the CSU’s decision to renew the contract “was made following extensive evaluation and input from across the system. Our stakeholders, including the CSU’s Generative AI Advisory Committee and its three subcommittees unanimously recommended renewing the contract. … This was not a one-time consultation, but an…

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