Amazon, the tech giant led by Jeff Bezos, has just signed a landmark agreement with the Trump administration. The $1 billion cloud computing contract aims to transform how federal agencies use modern technologies—especially artificial intelligence and advanced cloud infrastructure.

Deal Confirmed: AWS Becomes the Backbone of Government IT

On Thursday, the U.S. General Services Administration (GSA) officially confirmed that the contract with Amazon Web Services (AWS) will run through 2028. The agreement is part of the White House’s “OneGov” initiative, which pushes federal agencies to abandon outdated IT systems and adopt unified cloud services—this time using pre-approved credit lines instead of cash payments.

The deal provides federal agencies with up to $1 billion in AWS credits to rebuild their tech infrastructure from the ground up. It also includes cloud training for government employees and infrastructure support for advanced AI systems, including machine learning and language models.

Josh Gruenbaum, Commissioner of Federal Procurement and a senior official at the Department of Defense, helped broker the deal. He called it

“a foundational element for implementing President Trump’s AI action plan.”

Trump’s OneGov Strategy: Cloud Spending Goes Directly to Amazon

This is the second major OneGov contract signed since Trump returned to office and issued an executive order calling for centralized federal procurement.

Officials say the deal is a core part of the president’s tech reform strategy. Instead of having each agency negotiate with dozens of private vendors, they will now source cloud resources directly from Amazon.

Josh stated that the $1 billion AWS credit will mainly cover core cloud services—data storage, compute power, and tools to run machine learning applications. The rest will fund workforce training and tools to transition agencies away from aging on-premise systems.

Michael Rigas, acting GSA Administrator, said the deal would help agencies reduce costs and deliver key services more efficiently using Amazon’s technology:

“Thanks to this new AWS agreement, federal agencies will be able to improve core service delivery, leverage cloud and advanced AI tools, and dramatically cut costs,” he said.

Other Tech Giants in Talks—But Amazon Leads the Way

While the GSA is also negotiating similar OneGov deals with Microsoft and Google, Amazon is the first to secure direct access to the federal tech market—an ecosystem estimated to be worth $80 to $100 billion. Oracle has already signed a separate deal offering agencies a 75% discount on its services, but it lacks the credit-based model Amazon introduced.

Eliminating Middlemen: Agencies to Work Directly with AWS

One of the most strategic elements of the Amazon deal is its focus on bypassing third-party vendors. Instead of relying on resellers or system integrators, agencies will work directly with AWS. Josh explained this was intentional:

“We wanted a deep partnership with long-term vision, and they embraced that. This deal is structured to last the entire span of this administration.”

Matt Garman, CEO of AWS, added that the partnership gives Amazon greater influence over how the federal government deploys AI:

“As agencies roll out advanced technologies like AI and machine learning, AWS is uniquely positioned to help them achieve immediate operational efficiency while building the foundation for a more secure and innovative government.”

GSA Says This Is Just the Beginning

The GSA confirmed this deal is just the start. A high-level agency official noted:

“We’re just getting started. This is the first deal of its kind, and many more will follow—both in cloud and other high-impact sectors.”


#amazon , #TRUMP , #AI , #USGovernment , #worldnews

Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!

Notice:

,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“