Alphabet’s Google GOOGL GOOG has announced a significant reduction in the prices of its artificial intelligence (AI) and cloud services for federal agencies.
Trump's AI Plan Brings Google Tools To Federal Agencies
The General Services Administration (GSA) announced on Thursday that Google would be offering its “Gemini for Government” suite of AI and cloud services to federal agencies at a cost of $0.47 each, reported The Hill. This 71% discount will be available to federal agencies until 2026.
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‘Gemini for Government' comes with FedRAMP High-certified security and compliance features. Purpose-built for AI, it offers a fully integrated solution anchored on three pillars—An enterprise platform that provides choice and control, a built-in, advanced security and a trusted partner for true digital transformation.
Acting GSA Administrator Michael Rigas stated, “Federal agencies can now significantly transform their operations by using the tools in ‘Gemini for Government', thanks to this agreement with Google and the Trump Administration's leadership revolutionizing AI for the U.S. government.”
These AI models were recently added to the government purchasing system, following GSA’s OneGov Strategy and President Trump’s AI Action Plan, which aims to accelerate the adoption in the federal government.
Tech Giants Slash AI, Cloud Costs for US Government
This development follows a trend of tech companies offering discounted services to the federal government. In July, Oracle Corporation ORCL announced a 75% discount on its database software and cloud-computing services for the federal government.
Shortly after, Elon Musk’s xAI launched ‘Grok for Government’ following a multi-million-dollar defense contract from the Pentagon.
In August, OpenAI and Anthropic also offered their AI models to federal agencies for $1. These initiatives are part of President Trump’s AI Action Plan to boost AI adoption in the federal government.
Benzinga Edge Stock Rankings shows that Alphabet had a stronger price trend over the long, medium and short term. Check the detailed report here.
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