GSA Changes the Game: Irrevocable AI Licenses for the Government

On March 7, 2026, a draft of new AI procurement rules from the US General Services Administration (GSA) leaked online. The document is a direct response to the recent conflict involving AI startups attempting to dictate their ethical standards to the Pentagon.

The GSA is introducing a radical requirement: any vendor seeking a federal contract must grant the US government a non-exclusive and irrevocable license for "any lawful use" of their models. This is a legal firewall against situations where a provider suddenly shuts down an API due to pacifist sentiments on its board of directors. Furthermore, the document demands full disclosure regarding whether the model's weights were modified to appease foreign regulators. The B2G (Business-to-Government) market is being purged of idealism: if you want taxpayer money, forget about your own "red lines."

Source: Financial Times / Reuters