Google Joins Government AI Race with Gemini at $0.47 per Year
Undercuts OpenAI and Anthropic's $1 Offerings for Federal Agencies
Google is offering its artificial intelligence (AI) model Gemini and its suite of cloud service products to U.S. federal government agencies at an annual price of $0.47. Following OpenAI and Anthropic, which previously introduced their AI models for $1, Google has joined the low-price strategy, intensifying competition among major technology companies in the government AI market.
On August 21 (local time), Google announced on its official blog, "'Gemini for Government' will powerfully support government agencies' missions by integrating Google's cloud, AI models, and agent solutions into a single offering."
As a result, federal government agencies will be able to use Google's AI model for $0.47 per year. This is significantly lower than OpenAI's offer to provide a version of ChatGPT with enhanced security and privacy features to the U.S. federal government for $1 per year. Anthropic, the developer of another AI model called Claude, also announced on August 12 that it would provide Claude for Government to the U.S. executive, legislative, and judicial branches for $1 per year. Some analysts interpret Google's lower pricing as a move to accelerate adoption by government agencies and secure an early lead in this market.
Sundar Pichai, CEO of Google, stated in a press release that, "In addition to providing Workspace for federal employees, 'Gemini for Government' enables agencies to leverage the latest AI technology based on secure cloud infrastructure to accomplish their critical missions." Karen Dahut, CEO of Google Public Sector, also emphasized, "Through this product, U.S. government employees will be able to use leading AI solutions at a low cost," adding, "Google is deeply investing in innovation and security as a strategic partner to the U.S. government."
Michael Rigas, Acting Administrator of the U.S. General Services Administration (GSA), said, "Thanks to the agreement with Google and the Trump administration's AI innovation leadership, federal agencies can now leverage Gemini for Government to transform their work." Earlier this month, the GSA added Google Gemini, OpenAI's ChatGPT, and Anthropic's Claude to the government procurement system, allowing federal agencies to purchase and use these AI models.
The Trump administration has consistently pushed government agencies to incorporate AI into their work processes. Last month, President Trump officially announced the 'AI Action Plan,' which calls for accelerating the adoption of AI technology, and signed an executive order through federal agencies to promote the export of U.S. AI models and related initiatives.
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