Case Study – OpenAI Advisory Services – Social Media Platform – Flexible GPT Deal (No Lock-In Secured)
Background
A leading social media company was piloting OpenAI’s GPT to automate content moderation and user support.
The company began negotiating a large-scale OpenAI deployment. Still, it was determined to keep the deal flexible and avoid any long-term lock-in that could restrict its future AI options.
Challenges
The vendor’s proposal demanded a multi-year commitment with minimum usage guarantees and even hinted at exclusivity, discouraging use of other AI providers.
This clashed with the company’s agile innovation strategy. The pricing was front-loaded on an assumed rapid GPT rollout, which was premature.
Additionally, the draft bundled in add-on services that the company didn’t need. Stakeholders worried that signing this one-size-fits-all deal would overcommit the budget, limit their ability to try other AI solutions, and force an adoption schedule not on their terms.
Lacking precedent with a deal like this, the firm sought Redress Compliance’s expert help.
How Redress Compliance Helped
The Redress team helped the company define its ideal terms: a trial phase to start, the freedom to expand later if needed, and no exclusivity that ties them to one vendor.
They challenged the mandatory multi-year term, pushing for a shorter initial period with easy renewal, and aligning any usage commitments with the company’s actual rollout plans. Using market data, Redress showed that the vendor’s projected usage requirements were inflated.
They negotiated a much lower minimum spend and secured a “pay-as-you-grow” structure so that costs would scale only with actual usage. Redress also had the exclusivity and bundling provisions removed, ensuring the company could still explore other AI solutions and wouldn’t be forced to pay for unwanted services.
Armed with Redress’s data and strategy, the social media firm confidently rejected unfavorable terms and insisted on conditions that matched its business objectives. Redress’s guidance flipped the power dynamic, making it clear the client would only sign on its terms.
Outcome and Impact
With Redress Compliance’s support, the social media platform secured a highly flexible AI agreement with no onerous lock-ins.
The final contract implemented an initial 12-month term with easy renewal options, rather than a fixed multi-year lock.
The financial commitment was adjusted to actual usage needs, meaning they pay only for GPT usage required (approximately 25% less than originally proposed).
The agreement had no exclusivity restrictions so that the company can integrate other AI providers freely. Unneeded services were stripped out, and any future expansion of scope would be at the company’s discretion.
Leadership proceeded with the GPT deployment, confident they retained control. They could scale up successful AI features or pivot away from underperformers – all with no penalties or barriers.
Client Testimonial
“Our goal was to adopt AI on our terms, not the vendor’s, and Redress Compliance made it happen,” said the VP of Product at the company. “They gave us the leverage and insight to push back on a one-sided deal. We ended up with a flexible contract where we pay for what we need, when we need it – and no strings limiting our future choices. Redress turned a potentially restrictive agreement into a platform for innovation on our timeline.”
Call-to-Action
Don’t let vendors dictate your AI journey. Redress Compliance can help you negotiate AI agreements that fit your strategy – not the other way around. If you’re facing a rigid AI contract or a large language model deal, let us ensure you keep flexibility and control. Contact Redress Compliance to secure an AI partnership on your terms and timeline.
Read about our GenAI Negotiation Services.
Read about our other GenAI Negotiation Case Studies.
