The U.S. federal government has signed a groundbreaking deal with Google to provide Gemini AI to agencies at the nominal cost of $0.47 per agency. Announced by the General Services Administration (GSA), the “Gemini for Government” program will run until 2026, marking one of the most aggressive enterprise AI pricing frameworks yet.
The suite covers NotebookLM, Veo-powered media generation, enterprise search, and pre-built AI agents. Agencies can also build their own customized bots for workflow automation. The deal builds on Google’s federal contracts, including Workspace, which is supplied at a 71% discount.
Framed as part of Trump’s AI Action Plan, the initiative aims to bring large-scale modernization to federal operations. Google CEO Sundar Pichai described Gemini as a “full stack” solution, while GSA officials praised procurement flexibility.
Security is central to the arrangement. Google Cloud is FedRAMP High certified, and the package includes identity management, compliance, and threat detection.
Industry analysts, however, doubt the long-term viability of the $0.47 cost, calling it a potential loss-leader strategy. They point to risks such as vendor lock-in, uncertain timelines, and undefined success measures.
Though seen as a milestone for AI adoption in government, observers caution that the ultimate outcome will depend on whether it results in sustainable modernization—or costly dependence after 2026.
