AWS to give US$1b in discounts to US government agencies
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The news: Amazon Web Services will provide US government agencies with as much as USD1 billion ($1.54 billion) in savings for cloud adoption, modernisation, and training over the next three years.
The context: The US General Services Administration (GSA) announced on Thursday that the agreement aims to accelerate large-scale IT transformation across government and spur AI innovation.
The “landmark agreement” positions AWS to “build the foundation for a more secure and innovative government of tomorrow,” AWS CEO Matt Garman said.
The agreement comes one day after the GSA revealed it had struck a deal with OpenAI to cut costs and save taxpayer dollars, with US agencies able to use its ChatGPT Enterprise product for USD1 for the next year. Large tech companies have been working to secure their ties with the Trump administration, pledging large commitments to bolster US manufacturing and tech development.
What they said: “The Trump Administration is rapidly modernizing out-of-date government systems, streamlining processes, and delivering savings to the American taxpayer through centralized procurement,” said GSA acting administrator Michael Rigas. “Through this new agreement with AWS, federal agencies will be able to enhance delivery of critical services, leverage cloud and advanced AI technologies, and dramatically reduce costs.”
The sources: General Services Administration , Reuters
