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The University of South Carolina is doubling down on its OpenAI bet. What started as a $1.5 million contract approved in June 2025 is now projected to reach $3 million by late 2025, after demand for ChatGPT Edu access surged past initial expectations.
USC became the first university in South Carolina to strike a deal with OpenAI, giving all students, faculty, and staff access to the company’s education-specific AI platform. The service officially launched in August 2025.
What USC is actually getting
The expanded agreement goes beyond basic chatbot access. The extension is set to include image generation capabilities and advanced features like GPT-5 Thinking Mini, OpenAI’s lighter reasoning model.
USC’s contract includes a guarantee that conversations and data within its ChatGPT Edu environment will not be used to train OpenAI’s models. The university is also pairing the technology rollout with dedicated training resources focused on responsible AI use.
USC is far from alone
OpenAI has sold more than 700,000 ChatGPT licenses across roughly 35 public universities, a push that began in early 2024 and has accelerated considerably since.
The price tags vary wildly depending on institution size. Arizona State University’s latest deal clocked in at $2.1 million. California State University, with its sprawling multi-campus system, is looking at contracts in the $15 to $17 million range. USC’s $3 million commitment lands squarely in the middle of that spectrum.
Not everyone is on board
Despite the administration’s enthusiasm, the reception on campus has been decidedly mixed. An informal poll at USC showed students opposing the partnership by a ratio of 9-to-1.
Faculty concerns have surfaced at several institutions partnering with OpenAI, with questions centering on the scale of these contracts and the lack of faculty oversight in the decision-making process.
What this means for investors
The education sector is becoming a meaningful revenue stream for OpenAI. More than 700,000 licenses across approximately 35 public universities represents significant recurring revenue. Look at the contract escalation pattern at USC alone: the original $1.5 million deal doubled within months.
The California State University contract range of $15 to $17 million is particularly worth watching. A deal that size, if it materializes, would represent a proof point for large-scale AI adoption in public higher education.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
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