The General Services Administration (GSA) on Thursday announced a new agreement with Google to deploy its suite of artificial intelligence (AI) and cloud services across the federal government.
The deal comes as part of the Trump administration’s “America AI Action Plan” and will see federal agencies pay $0.47 per agency to use Google’s AI tools, including a new Gemini for Government offering. The deal is valid through 2026 and builds on the prior agreement under which Google Workspace was provided to all federal agencies at a 71% price cut.
GSA’s deal with Google comes as part of the OneGov initiative for procurement across federal agencies, which has also featured deals for AI tools like OpenAI’s ChatGPT for $1 and those offered by Anthropic for $1.
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“This is a natural progression in the strategy that we have rolled out over the last couple of months in what we’re calling OneGov,” Federal Acquisition Service Commissioner Josh Gruenbaum said in an interview with FOX Business Network’s Grady Trimble. “It’s trying to use the federal wallet as one negotiating leverage point and one-stop shop for industry to deal with the federal government as it relates to common goods procurement.”
“I think what differentiates Google inside of the strategy that the GSA has been deploying over the past several months… is they are answering the bell in terms of many different policies and pulling together many different initiatives that we are trying to execute on under the direction of this president and his commonsense business approach to the way the federal government operates on a day-to-day,” Gruenbaum said.
Karen Dahut, CEO of Google Public Sector, told Trimble in an interview that the company is “super excited about our partnership with GSA,” saying that “what we came to understand is that we have a shared sense of urgency around the need to really provide AI tools and products to the federal workers.”
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“What really separates this offer from anything else that anybody else has done is we are offering a fully integrated AI-ready platform for federal workers to use today. It’s hyper-secure at the FedRAMP high standard, and it includes Gemini and all of the assistive capabilities of Gemini,” she said.
Dahut explained that the offer is “aimed at helping the government really transform operations” and “reduces the toil of the federal workforce” by allowing workers to spend more time on higher-value activities.
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The GSA’s rollout of AI tools like Google’s Gemini for Government offering, as well as the previously announced tools from Anthropic and ChatGPT, gives federal agencies the ability to begin experimenting with how the tools can improve operations and begin incorporating them into more workflows over time.
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“Agencies are adopting this technology in the crawl, walk, run paradigm in a different cadence. There are some agencies that are quite ahead of the curve,” Gruenbaum said, noting GSA has been using AI in procurement for nearly two years.
“Other agencies will learn from GSA. We are building a full playbook that they will be able to leverage and try to go and deploy within their own agencies,” he said.
“My expectation is certain agencies will deploy the tools for some of the more obvious use cases, like help desks or call centers, and then as they get to that run phase of where they could really make their processes and systems very, very tech forward, very agentic, that’s going to evolve over time as we start educating the workforce,” Gruenbaum said.
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