Amazon's AWS Lands $1B Discount Deal with US Federal Government

Amazon Web Services (AWS) has partnered with the US General Services Administration (GSA) to offer federal agencies up to $1 billion in discounts for cloud services through 2028. This deal supports AI tools and aims to speed up cloud adoption, aligning with President Trump's AI Action Plan. The agreement expands AWS' role in the federal government, a market worth up to $100 billion.

Amazon Web Services (AWS) has entered into a significant agreement with the U.S. General Services Administration (GSA) to provide federal agencies with up to $1 billion in discounts for cloud services through 2028. This deal, announced on August 7, 2025, supports the adoption of artificial intelligence (AI) tools and aims to accelerate cloud migration, aligning with President Trump's AI Action Plan [1].

The agreement, expected to boost federal agencies' cloud adoption and AI integration, is part of a broader effort to modernize government services. The GSA, which oversees government procurement, has been actively pursuing partnerships to enhance the digital capabilities of federal agencies. This latest deal with AWS follows a similar agreement with Oracle announced last month and an agreement with OpenAI to provide federal agencies with access to ChatGPT at a discount [1].

AWS, under the leadership of its cloud boss Matt Garman, hailed the deal as a "significant milestone in the large-scale digital transformation of government services." The discounts, aggregated across federal agencies, include credits for using AWS' cloud infrastructure, modernization programs, and training services, as well as incentives for direct partnership [1].

This partnership is set to expand AWS's role in the federal government, a market estimated to be worth up to $100 billion. The deal is expected to facilitate the adoption of advanced AI tools and accelerate the migration to cloud-based services, which can enhance efficiency and innovation in government operations.

Thomson Reuters, a major player in the AI and legal technology sector, has also been making strides in AI integration. In the second quarter of 2025, Thomson Reuters reported higher revenue, driven by the launch of advanced AI tools for legal, tax, and accounting customers [2]. The company's AI assistants, such as CoCounsel Legal, are designed to perform complex tasks with minimal human intervention, indicating a growing trend in AI adoption across various sectors.

As federal agencies and major corporations continue to invest in AI and cloud technologies, the market for these services is expected to grow. The AWS-GSA partnership is a notable example of how public-private collaborations can drive innovation and modernization in government services.

References:
[1] https://www.cnbc.com/2025/08/07/amazon-aws-federal-discounts.html
[2] https://www.theglobeandmail.com/business/article-thomson-reuters-earnings-revenue-increase-software-ai/