Amazon Web Services is giving the Trump administration a $1 billion coupon to use their services for the federal government’s digital transformation and artificial intelligence capacity. On Thursday, the General Services Administration announced a sweeping “OneGov” agreement with Amazon Web Services that would yield up to $1 billion in cost savings for federal agencies shifting to cloud services.
The deal, set to run through 2028, is being framed by administration officials as a cornerstone of both the administration’s AI strategy and its broader effort to modernize government IT systems.
Federal Acquisition Service Commissioner and DOGE staffer Josh Gruenbaum, who has played a leading role in negotiating the deal, called it “a foundational piece to help implement President Trump’s AI Action Plan.”
The AWS deal is not exclusive. Similar OneGov agreements are in the works with other major cloud providers, including Microsoft and Google, said a senior administration official familiar with the conversations granted anonymity to discuss them. Oracle also recently signed a deal giving government agencies a 75% discount on Oracle technology.
“We’re just getting started,” the senior GSA official said. “This is a first-of-its-kind agreement, and there’s a lot more to come both in the cloud space and across other high-impact industries.”
For the administration, it’s a chance to solidify Trump’s AI legacy by laying the groundwork for a long-term transformation of government operations.
Lambert here: Why not just nationalize AWS?
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