Microsoft has agreed to provide discounted cloud services to US federal agencies under a new deal announced by the General Services Administration (GSA) on Tuesday. The agreement is part of the administration’s broader effort to secure cost-effective technology partnerships across government departments.
According to GSA and Microsoft, the deal could save the government as much as 3 billion dollars in the first year. The figure could not be independently verified.
As part of the agreement, existing federal government users will also receive free access to Microsoft Copilot, the company’s generative AI chatbot. In addition, agencies will benefit from lower prices on a range of cloud products, including Microsoft Sentinel and Azure Monitoring.
The offer is valid for government agencies that choose to opt in before September 2026. GSA, which is responsible for negotiating and managing government-wide contracts with technology vendors, said the move reflects its commitment to making commercial AI tools available across the federal government.
In recent weeks, GSA has announced similar agreements with other major cloud providers, including Google and Amazon Web Services, also offering discounts to federal agencies. The aim is to ensure government departments have access to advanced digital solutions at reduced costs while promoting the adoption of artificial intelligence in public services.
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