AWS provides $1 billion discount to U.S. government agencies

Cosmico - AWS provides $1 billion discount to U.S. government agencies
Credit: Amazon Web Services, Inc.

Amazon Web Services (AWS) has agreed to provide U.S. federal agencies with up to $1 billion in discounts for cloud adoption, modernization, and training through 2028, the General Services Administration (GSA) announced Thursday.

The deal is aimed at accelerating the federal government’s migration to cloud infrastructure and expanding the adoption of artificial intelligence tools. According to the GSA, the arrangement underscores “a shared public-private commitment to enhancing America’s AI leadership.”

Under the agreement, participating agencies will gain access to AWS credits, modernization programs, training services, and incentives for direct collaboration with the cloud provider.

“This is a significant milestone in the large-scale digital transformation of government services,” said Matt Garman, AWS’s senior vice president of sales, marketing, and global services.

The GSA has been actively striking similar partnerships as part of its broader push to modernize government technology. Last month, the agency announced a comparable cloud services deal with Oracle. Just a day before the AWS announcement, the GSA revealed an agreement with OpenAI to provide federal agencies access to ChatGPT for $1 over the next year.

AWS’s partnership with the federal government comes at a time when agencies are increasingly seeking secure, scalable cloud solutions and AI capabilities to improve efficiency, streamline services, and bolster national competitiveness in emerging technologies.

With this $1 billion commitment, AWS is positioning itself not just as a cloud provider to the federal sector, but as a strategic partner in the modernization of government services.

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