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Amazon Web Services to Provide US Government Agencies with up to $1 Billion in Discounts

UNITED STATES, AUG 7 – The $1 billion deal provides federal agencies cloud credits to accelerate AI adoption, reduce costs, and support workforce training through 2028, officials said.

  • On Thursday, the General Services Administration unveiled a $1 billion AWS credit deal valid through December 31, 2028, for federal agencies.
  • Ditching isolated deals, the GSA announced on Thursday a $1 billion AWS credit package under the OneGov strategy, centralizing cloud spending directly to Amazon Web Services.
  • Under the agreement’s structure, federal agencies will bypass resellers and integrators to work directly with AWS, with incentive credits funding migration, AI projects, and training.
  • Enhancing delivery of critical services and advanced AI will help federal agencies dramatically reduce costs, Acting GSA Administrator Michael Rigas said.
  • While potentially setting a global precedent, industry experts say the AWS-GSA pact may inspire similar arrangements while raising challenges in equitable access for smaller agencies and data sovereignty.
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Channel News Asia broke the news in Singapore on Thursday, August 7, 2025.
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