GSA attacks federal agency Google AI trading

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General Services Management (GSA) announced a new agreement on Thursday to deploy its suite with Google Artificial Intelligence (AI) Federal government-wide cloud services.

The deal will be made as part of the Trump administration's “American AI Action Plan” and confirm that federal agencies will pay $0.47 per person for use Google's AI ToolsIncludes new Gemini for government provision. The transaction is still valid until 2026 and is built on previous agreements that Google Workspace provided to all federal agencies with a 71% price reduction.

GSA's Google deal will come as part of the OneGov initiative for procurement across federal agencies, as part of the OneGov Initiative, which offers trading for AI tools like Openai's ChatGPT for $1 for $1 and is offered for $1.

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“This is a natural progression of the strategy we've rolled out over the past few months in what we call OneGov,” said Federal Acquisition Services Commissioner Josh Gruenbaum in an interview with Grady Trimble at Fox Business Network. “We are trying to use our federal wallets as one negotiation leverage point and one-stop shop for the industry to address the federal government associated with general merchandise sourcing.”

Workers will enter the building on July 23, 2025 at the Google HQ campus in Mountain View, California. Google's parent company, Alphabet, reported second-quarter revenues at $96.43 billion, which was better than expected compared to the $94 billion analyst's forecast.

The Trump administration has announced a new agreement with Google and will deploy a suite of artificial intelligence (AI) and cloud services throughout the federal government. (Justin Sullivan/Getty Images/Getty Images)

“I think what distinguishes Google within the strategy that GSA has been rolling out over the past few months answers Bell from a number of different policy perspectives and brings together a number of different initiatives it is trying to implement under this president's direction. Federal Government It operates every day,” Gruenbaum said.

Karen Dahut, CEO of Google Public Sector, told Trimble in an interview that the company is “very excited about its partnership with GSA,” and that “what we've come to understand is that it shares the urgency of the need to truly provide AI tools and products to federal workers.”

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President Donald Trump's administration deploys AI throughout the federal government. (Bonnie Cash/UPI/Bloomberg Via/Getty Images)

“What really separates this offer from what someone else has done is that it offers a fully integrated, AI-enabled platform for federal workers to use today. It's super secure with Fedramp High Standard and includes all the support capabilities of Gemini and Gemini,” she said.

Dahut explained that the offer was “to help the government actually transform its operations,” and that “reduces the struggles of the federal workforce” by allowing workers to spend more time on higher value activities.

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GSA AI Tool Rollout Similar to tools previously announced by Google's Gemini for Government Offering, and Anthropic and ChatGpt, federal agencies provide the ability to begin experimenting with ways that tools improve their operations and incorporate them into more workflows over time.

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Gemini Google on your mobile phone

Google's agreement with GSA is rolling out a new Gemini for government provided across federal agencies. (Lorenzo DiCola /Via Nuru Photo /Getty Images)

“Agents are adopting this technology in the crawl, walking, running paradigms with different rhythms. There are a few institutions that are well ahead of the curve,” Gruenbaum said GSA has been using AI in procurement for nearly two years.

“Other agencies learn from GSA. We're building a complete playbook that they're trying to leverage and deploy within their agency,” he said.

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“My hope is that certain agencies will deploy tools for some of the more obvious use cases, such as help desks and call centers. And once they reach the execution stage where they can actually move processes and systems forward very, very technically, that will evolve over time as we start educating the workforce,” Gruenbaum said.



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