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Aug 10, 2025  |  
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Annabella Rosciglione


NextImg:Big Tech offers discounts to federal government agencies

Tech companies have been offering the Trump administration numerous deals for government usage in recent months, amassing billions of dollars.

Several tech high-profile CEOs attended President Donald Trump’s inauguration in January, and since then, many companies have furthered their efforts to get closer to Trump.

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Amazon Web Services most recently offered the General Services Administration $1 billion in discounts to use their services for the agency’s digital transformation and artificial intelligence. That deal is set to run through 2028.

AWS CEO Matt Garman called it a “landmark agreement.”

“As federal agencies adopt advanced technologies like artificial intelligence and machine learning, AWS is positioned to not only help them achieve immediate operational efficiencies, but also to build the foundation for a more secure and innovative government of tomorrow,” he said.

The Amazon Web Services deal comes after several other similar deals have been made.

OpenAI said it was giving ChatGPT’s enterprise product to federal agencies for $1 through the next year. The GSA called the deal a “deeply discounted rate,” and CEO Sam Altman said, “One of the best ways to make sure AI works for everyone is to put it in the hands of the people serving the country.” This deal, as well as AWS’s, is in line with the White House’s AI Action Plan, which was rolled out in July.

OpenAI will open its first Washington office later this year.

In June, OpenAI also started a new offering, OpenAI for Government, which was awarded a $200 million contract by the Defense Department.

Oracle, headed by Larry Ellison, an outward supporter of Trump, offered government agencies a 75% discount on its license-based software, which will include databases and analytics. It also offered the Trump administration a “substantial” discount on its cloud service. Oracle said the offer was the first of its kind to provide the entire federal government with a discount on cloud infrastructure.

In May, Salesforce similarly said it would discount its price to the federal government for its workplace messaging app, Slack, by 90% through the end of November.

Google in April said it would offer steep discounts to federal agencies for its business apps package. Part of Google’s offer came as the company looks to knock some of Microsoft’s hold over the federal government.

The offerings to the federal government come as some tech CEOs, including Apple’s Tim Cook and Nvidia’s Jensen Huang, look to forge alliances with Trump, oftentimes through flattery.

Cook this week offered the president a glass plaque on a 24-karat gold base and announced that Apple would invest an additional $100 billion in U.S. manufacturing over the next four years.

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“You’ve been a great advocate for American innovation and manufacturing, and I’m grateful for your leadership and your commitment,” Cook said at the White House. “That’s a commitment we share at Apple, because American innovation is central to everything we do.”

Apple was exempt from Trump’s 100% tariffs on semiconductors, which he announced at the same event, that would have largely impacted its manufacturing.