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California State University renews $13M/year OpenAI contract amid budget cuts and debate

By

Kate Rix

1mo ago· 5 min readenNews

Summary

California State University has renewed its contract with OpenAI for $13 million per year over three years, providing ChatGPT access to over 470,000 students and 63,000 faculty/staff. The decision has sparked debate about the cost and value of the agreement, especially given the CSU system faces significant budget cuts. The previous 18-month contract cost $17 million and expires in June. Critics question whether the investment in ChatGPT Edu is justified amid financial constraints.

Source

bskyCalifornia State University renews $13M/year OpenAI contract amid budget cuts and debateedsource.org

Key quotes

· 3 pulled
A CSU spokesperson confirmed to EdSource on Wednesday that the university will pay $13 million a year for three years to provide systemwide access to its more than 470,000 students and 63,000 faculty and staff.
The previous 18-month subscription cost $17 million and expires at the end of June.
The CSU contract with OpenAI is the largest
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The move has sparked debate about the cost of the agreement and the quality of ChatGPT Edu, a version of ChatGPT designed for higher education.

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