Trump's GSA seals major Google contract offering Gemini AI to agencies for $0.47

The General Services Administration announced Wednesday a deal withGooglethat will allow government agencies to access the tech company'sartificial intelligenceproducts at a significantly discounted rate.

Federal departments will have access to a specialized government version of Google's Gemini chatbot at the discounted price of $0.47 per agency through 2026.

"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," said GSA Acting Administrator Michael Rigas in a statement praising President Donald Trump's.pushto incentivize the public and private sectors to embrace AI.

"GSA is dedicated to rapidly achieving President Trump's goals to accelerate AI adoption across government, and this agreement with Google is the latest success in meeting that goal," Rigas continued.

The new contract marks the latest step in AI becoming embedded in government after the Pentagon.Recently announceda deal withX's Grok. The Chief Digital and Artificial Intelligence Office announced a series of contracts, awarded to Anthropic, Google, OpenAI, and xAI, for use by the Department of Defense. The contracts are providing up to $200 million to each company.

Trump has issued multipleExecutive ordersSeeking to expand AI's reach, including through the release of his AI Action Plan last month, partly to assert technological dominance over leading global competitors such as China.

Google said in April that it would offer significant discounts to federal agencies for its cloud-based business apps productivity package, reaching an agreement with GSA to provide its Workspace tools to agencies at a 71% discount.

"Building on our Workspace offer for federal employees, Gemini for Government gives federal agencies access to our full stack approach to AI innovation, including tools like NotebookLM and Veo, powered by our latest models and our secure cloud infrastructure, so they can deliver on their important missions," said Google CEO Sundar Pichai in a statement.

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In addition to Google, a number of other leading tech companies have started offering heavily discounted AI products to the federal government.

Among them is Sam Altman's OpenAI, which recently beganofferingChatGPT to agencies for a $1 annual fee. Larry Ellison's Oracle has also offered agencies a 75% discount on its license-based software, including databases and analytics.