The U.S. federal government has reached a landmark agreement with Google to deploy Gemini AI across agencies for just $0.47 per agency. Announced by the General Services Administration (GSA), the “Gemini for Government” program will run through 2026, representing one of the most aggressive pricing models in enterprise AI.
The package features NotebookLM, Veo-powered video and image generation, enterprise search tools, and pre-built AI agents. Agencies also gain the ability to create custom agents for workflow automation. The deal builds on Google’s existing presence in government, where Workspace is already offered at a 71% discount.
Officials describe the initiative as part of Trump’s AI Action Plan to modernize government operations at scale. Google CEO Sundar Pichai said Gemini delivers a “full stack” of AI innovation, while GSA leaders stressed procurement flexibility.
Security assurances are central. Google Cloud has FedRAMP High authorization, and the suite includes identity management, compliance, and threat protection features.
Analysts, however, have questioned whether the $0.47 pricing is sustainable, suggesting it may be a loss-leader strategy designed to lock agencies into Google’s ecosystem. Risks highlighted include dependency on a single vendor, uncertain rollout timelines, and the absence of clear performance metrics.
While promoted as a milestone in AI-enabled government efficiency, observers note the real test will be whether the initiative delivers durable modernization—or leaves agencies vulnerable to higher costs once pricing shifts after 2026.
