US Government Secures AI Deals with GSA, Amazon, and Google for a Nominal Fee of $1

The US government has announced an AI action plan with a budget of $11.179 billion, but this is dwarfed by big tech companies' spending on AI. The General Services Administration has secured deals with OpenAI, Amazon Web Services, Anthropic, and Google, offering their AI tools to federal agencies for minimal fees. Google's latest deal with GSA provides a suite of AI and cloud services for $0.47 per agency, with a 71% price decrease for Google Workspace. The deals include various AI capabilities, such as video and image generation, and built-in security features.

The US government has unveiled an AI action plan with a budget of $11.179 billion, aiming to accelerate the country's dominance in artificial intelligence. This initiative, announced in July 2025, is part of a broader effort to streamline regulations, build infrastructure, and promote AI innovation. While the budget is substantial, it pales in comparison to the massive investments made by big tech companies in AI research and development [1].

The General Services Administration (GSA) has secured deals with major tech companies such as OpenAI, Amazon Web Services, Anthropic, and Google, providing their AI tools to federal agencies at minimal fees. For instance, Google's latest deal with GSA offers a suite of AI and cloud services for $0.47 per agency, representing a 71% price decrease from Google Workspace. These deals include a range of AI capabilities, such as video and image generation, and built-in security features, underscoring the government's commitment to leveraging cutting-edge technology [1].

The AI action plan focuses on several key areas, including AI infrastructure, energy, and security. It aims to build vast AI infrastructure and energy systems, remove regulatory barriers, and ensure American AI becomes the global standard. The plan also emphasizes the importance of preventing ideological bias in AI systems and ensuring that advanced technologies are not misused or stolen by malicious actors [1].

However, the plan faces significant implementation challenges. Experts have expressed concerns about the "say-do gap" caused by a lack of resourcing on the government side to implement the action plan effectively. The ability of the US to outcompete China in the AI race under this new framework is also a contentious issue. While the plan aims to accelerate AI innovation and infrastructure development, the success of these initiatives will depend on the government's ability to execute and maintain the necessary resources and support [1].

In conclusion, the US government's AI action plan represents a substantial effort to bolster the country's AI capabilities. However, the success of this initiative will depend on effective implementation and addressing the identified challenges, particularly in terms of resource allocation and competition with other nations. The deals secured by the GSA with major tech companies demonstrate the government's commitment to leveraging advanced technology, but the long-term impact of these investments remains to be seen.

References:
[1] https://www.energypolicy.columbia.edu/trumps-high-risk-high-reward-ai-action-plan/