Amazon Web Services (AWS) is joining the growing list of tech giants aligning themselves with President Trump’s agenda, and this time, it’s putting a billion-dollar price tag on it.
In what’s being framed as a major push to accelerate federal AI adoption, the U.S. General Services Administration (GSA) announced Thursday that AWS has agreed to provide up to $1 billion in complimentary services for the government.
The move follows a wave of high-profile collaborations between Big Tech and the Trump administration.
Apple CEO Tim Cook stood beside the president in the Oval Office this week to unveil a $100 billion U.S. investment, which is a clear concession to avoid Trump’s threat of tariffs on imported iPhones.
Amazon is apparently playing the same game, and not without reason. Trump has shown a tendency to reward or punish companies based on their alignment with his goals.
According to the GSA, the AWS agreement “demonstrates a shared public-private commitment to enhancing America’s AI leadership.”
“The Trump Administration is rapidly modernizing out-of-date government systems, streamlining processes, and delivering savings to the American taxpayer through centralized procurement,” said GSA Acting Administrator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 deal includes AWS credits to offset the cost of cloud infrastructure, as well as modernization tools to help agencies overhaul legacy systems. Federal workers will also gain access to AWS training and certification programs — part of the broader effort to reskill the public sector workforce.
“This landmark agreement marks a significant milestone in the large-scale digital transformation of government services,” said AWS CEO Matt Garman.
“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.”
The deal is part of the GSA’s broader OneGov Strategy, which aims to centralize and modernize how the federal government buys goods and services.
The GSA has signed similar partnerships with Microsoft (MSFT) and Google (GOOG), and on Wednesday it announced a new deal with OpenAI to provide ChatGPT Enterprise access to federal agencies at a “deeply discounted rate.”
“One of the best ways to make sure AI works for everyone is to put it in the hands of the people serving our country,” said OpenAI CEO Sam Altman. He added that the company is “proud” to support Trump’s AI Action Plan and help public servants “deliver for the American people.”
Amazon's stock was essentially flat on Thursday following the AWS-GSA announcement.
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