A landmark agreement between the U.S. federal government and Google will see Gemini AI deployed across agencies for just $0.47 per agency. The deal, announced by the General Services Administration (GSA), runs until 2026 and is regarded as one of the most aggressive enterprise AI pricing models so far.

The package includes NotebookLM, Veo-driven video and image generation, enterprise search tools, and pre-configured AI agents. Agencies will also have the option to create custom bots to automate workflows. The initiative builds on Google’s government presence, where Workspace is provided at a 71% discount.

Officials link the program to Trump’s AI Action Plan, designed to modernize federal operations. Google CEO Sundar Pichai described Gemini as offering a “full stack” of innovation, while GSA leaders pointed to the deal’s procurement flexibility.

Security safeguards are built in: Google Cloud already carries FedRAMP High certification, while the package addresses compliance, identity, and threat management.

Analysts have expressed doubts about the sustainability of the $0.47 pricing, warning it could be a loss-leader strategy to entrench Google’s influence. Concerns include vendor lock-in, vague rollout timelines, and lack of defined success measures.

Though promoted as a breakthrough in AI-driven government efficiency, critics stress that the true outcome will depend on whether the program delivers sustainable modernization or locks agencies into costly reliance after 2026.