Students and faculty at CSU Channel Islands in Camarillo have access to ChatGPT under a renewed $39 million contract between the California State University system and OpenAI.
CSU is paying $13 million a year for three years to provide ChatGPT Edu to all 470,000 students and 63,000 faculty and staff across the system, EdSource first reported. The deal, which took effect in July, is the largest partnership OpenAI has with any higher education institution.
The renewed contract expands access to 675,000 users, up from 500,000, and lets graduates keep using the tool for one year after they leave, LAist reported. CSU can cancel annually with advance notice.
CSU Channel Islands (CSUCI), the only four-year public university in Ventura County, enrolled about 4,880 students as of fall 2024. The campus saw its first enrollment growth in nine years in fall 2025, adding 1,480 new students, according to a CSU turnaround plan submitted March 27.
CSU officials say the contract prevents a digital divide for students who cannot afford AI subscriptions on their own. "We believe we're doing the right thing to serve our mission to prepare our students for the future workforce," Ed Clark, CSU's chief information officer, told EdSource on Oct. 5.
A systemwide survey of more than 94,000 students, faculty and staff found deep skepticism. Sixty-five percent of students and 59% of faculty said they doubted AI was benefiting education overall, EdSource reported. Large majorities worried about AI's effects on creativity, job security and the environment.
Only about a quarter of the 84% of students who said they use ChatGPT reported using the CSU-provided version, according to NPR. Most stuck with the free version.
The California Faculty Association, which represents 29,000 CSU employees, gathered nearly 4,000 signatures on a petition urging CSU not to renew the contract, the Sacramento Bee reported. Elaine Bernal, a CSU Long Beach lecturer and association spokesperson, told the Bee in May that faculty "were yet again not consulted on the AI contract."
The Cal State Student Association (CSSA) has also asked to be included in contract decisions. A February white paper from the group warned that inconsistent classroom policies create "confusion, fear, and mistrust" among students when some professors encourage AI use and others penalize it, according to the Bee.
The spending comes as CSU faces $144 million in budget cuts and a deferred 5% funding increase, according to EdSource. The original contract, signed in January 2025, cost $17 million for 18 months.
CSU's Generative AI Advisory Committee unanimously recommended the renewal, the Bee reported. The system has also awarded over $3 million in grants for 63 faculty-led projects exploring how AI fits into the classroom.
