The U.S. federal government has signed a landmark deal with Google to implement Gemini AI across agencies at the symbolic cost of $0.47 per agency. The arrangement, announced by the General Services Administration (GSA), runs through 2026 and is described as one of the most aggressive pricing models yet in enterprise AI.
The program includes NotebookLM, Veo-powered media generation, enterprise search tools, and pre-built AI agents. Agencies can also develop custom AI agents to handle workflow automation. The agreement extends Google’s government services footprint, including Workspace, already supplied at a 71% discount.
Officials tied the initiative to Trump’s AI Action Plan, focused on modernizing federal operations at scale. Google CEO Sundar Pichai described Gemini as a “full stack” solution, while GSA leaders emphasized flexibility in procurement.
Security is a core component. Google Cloud has FedRAMP High certification, and the Gemini suite includes compliance, identity management, and threat protection features.
Analysts question whether the $0.47 price point is viable long-term, warning that it may serve as a loss-leader strategy to drive agencies deeper into Google’s ecosystem. Risks cited include over-reliance on one provider, undefined benchmarks, and uncertain rollout plans.
While celebrated as a milestone in AI adoption by government, experts note that the real measure will come after 2026, when pricing could rise and dependency may increase.
