Google Launches 'Gemini for Government' AI at Reduced Price for Federal Agencies

Google has reduced the prices of its AI and cloud services for federal agencies, offering "Gemini for Government" at $0.47 per unit, a 71% discount until 2026. The service features FedRAMP High-certified security and compliance, and is part of President Trump's AI Action Plan to boost AI adoption in the federal government. Other tech companies have also offered discounted services to the government, including Oracle and OpenAI.

Google (NASDAQ: GOOG) has announced a significant reduction in the prices of its artificial intelligence (AI) and cloud services for federal agencies. The tech giant is offering its "Gemini for Government" suite of AI and cloud services at $0.47 per unit, a 71% discount that will be available until 2026. This initiative is part of President Trump's AI Action Plan to boost AI adoption in the federal government [1].

The "Gemini for Government" suite is designed to provide federal agencies with a fully integrated AI solution. It includes an enterprise platform that offers choice and control, advanced security features, and a trusted partner for digital transformation. The service is FedRAMP High-certified, ensuring robust security and compliance [1].

The General Services Administration (GSA) announced the deal on Thursday, stating that federal agencies can now significantly transform their operations using the tools provided by "Gemini for Government." Acting GSA Administrator Michael Rigas praised the agreement, highlighting the potential for digital transformation in federal agencies [1].

This development follows a trend of tech companies offering discounted services to the federal government. In July, Oracle Corporation (ORCL) announced a 75% discount on its database software and cloud-computing services for federal agencies. Additionally, Elon Musk's xAI launched 'Grok for Government' following a multi-million-dollar defense contract from the Pentagon. OpenAI and Anthropic also offered their AI models to federal agencies for $1, furthering the goal of President Trump's AI Action Plan to enhance AI adoption in the federal government [1].

The AI Action Plan, released in July 2025, outlines dozens of AI policy priorities for near-term execution by the federal government. It aims to achieve the President's vision of global AI dominance, focusing on accelerating AI innovation, building American AI infrastructure, and leading in international AI diplomacy and security [2].

Google's move to reduce prices for federal agencies is part of a broader strategy to enhance federal AI procurement. The GSA is creating an "AI procurement toolbox" to facilitate uniformity in federal adoption of AI models, allowing agencies to choose among multiple models while complying with privacy, data governance, and transparency laws [2].

The stock market's reaction to this announcement is mixed, with some analysts noting a stronger price trend for Alphabet (GOOGL) over the long, medium, and short term [3]. However, the impact on Alphabet's stock price remains to be seen as the market digests the implications of this significant discount for federal agencies.

References:
[1] https://www.benzinga.com/markets/tech/25/08/47278613/google-joins-anthropic-openai-launches-gemini-for-government-ai-at-less-than-0-50-per-unit
[2] https://seekingalpha.com/news/4487960-google-usga-sign-deal-to-bring-gemini-cloud-services-to-us-govt
[3] https://www.insidegovernmentcontracts.com/2025/08/july-2025-ai-developments-under-the-trump-administration/