Amazon Web Services To Provide US Government Agencies With Up To $1 Billion In Discounts For Cloud Shift

Amazon.com Inc.’s (AMZN) cloud services unit, Amazon Web Services, has entered into an agreement with the General Services Administration to offer up to $1 billion in discounts to federal agencies for digital transformation and adoption of artificial intelligence technologies.

Detailing the terms of the agreement, the GSA said the AWS deal is set to run through 2028. Amazon’s shares were trading 0.4% higher in Thursday’s opening trade. Stocktwits data showed the retail sentiment around the company was in the ‘extremely bullish’ territory.

GSA officials are terming the deal an example of the Trump administration’s efforts to modernize federal information technology infrastructure. “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,” said GSA Acting Administrator Michael Rigas.

AWS CEO Matt Garman called this deal a “significant milestone” and said this would help federal agencies maximize their operational efficiencies while improving security.

The $1 billion in credits covers the following aspects:

-- AWS credits: This will help federal agencies save money on core AWS cloud services.

-- Training credits: This will help in providing access to AWS training and certification.

The AWS deal comes a day after the GSA announced that OpenAI would offer its ChatGPT Enterprise service to all federal agencies for $1 a year. The agency said that ChatGPT was tested across several performance and security measures. AMZN stock is up nearly 2% year-to-date and 37% over the past 12 months.

Also See: Trump Calls On All Middle Eastern Countries To Join Abraham Accords After Obliteration Of Iran’s Nuclear Arsenal

For updates and corrections, email newsroom[at]stocktwits[dot]com.