AWS is giving the US government $1billion credit to keep running its cloud services
- The GSA and AWS sign an agreement worth $1 billion in AWS credits
- Trump’s AI Action Plan is supported by public and private bodies
- Discounts keep rolling in as the White House centralizes purchasing
The US Government has signed an agreement with Amazon Web Services (AWS) in exchange for $1 billion in cloud computing credits via its General Services Administration (GSA) as part of the White House’s ongoing effort to streamline and centralize federal procurement (and significantly reduce costs).
The US Government will have access to $1 billion in AWS credits until the end of 2028 to help support cloud adoption, IT modernization and training across core federal agencies.
The direct incentive credits are made up of different categories, including savings on core AWS cloud services, infrastructure modernization, training and certification, and direct partnerships and contracts with AWS.
US Government gets $1 billion in AWS credits
In its announcement, the GSA highlighted the collaboration between public and private sectors, with the shared goal to “enhanc[e] America’s AI leadership.”
“Through this new agreement with AWS, federal agencies will be able to enhance delivery of critical services, leverage cloud and advanced AI technologies, and dramatically reduce costs,” GSA Acting Administrator Michael Rigas explained.
Besides supporting the Trump Administration’s AI Action Plan, the agreement also reflects on ongoing trend within this space. Hyperscalers and lower-tier providers have all been offering the US Government significant discounts to pick their software in the hope that they can win major contracts while also saving the White House billions in cash.
“As federal agencies adopt advanced technologies like artificial intelligence and machine learning, AWS is positioned to not only help them achieve immediate operational efficiencies, but also to build the foundation for a more secure and innovative government of tomorrow,” AWS CEO Matt Garman added.
The news comes just two days after the GSA confirmed a partnership with OpenAI, which would see ChatGPT Enterprise become available at a “deeply discounted rate” for all federal workers.
Other recent discounts offered to the White House include up to 70% off certain Docusign plans and Adobe plans, and as much as 75% off Oracle cloud platforms.
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