The U.S. federal government has partnered with Google in a landmark agreement to roll out Gemini AI across agencies at the nominal cost of $0.47 per agency. Announced by the General Services Administration (GSA), the “Gemini for Government” initiative will run through 2026 and is considered one of the most aggressive pricing offers in enterprise AI.

The package includes NotebookLM, Veo-powered video and image generation, enterprise search, and ready-made AI agents. Agencies can also create custom agents to automate workflows. The deal builds on Google’s existing federal contracts, including Workspace, which is already provided at a 71% discount.

Officials positioned the agreement as part of Trump’s AI Action Plan to modernize government functions. Sundar Pichai, Google’s CEO, described Gemini as a “full stack” AI platform, while GSA leaders emphasized procurement flexibility.

Security standards are central to the deal. Google Cloud already holds FedRAMP High certification, and the package provides features for compliance, identity management, and threat protection.

Analysts have raised concerns about the sustainability of the $0.47 pricing, describing it as a potential loss-leader tactic. Risks identified include vendor dependency, unclear timelines for implementation, and insufficient performance metrics.

While seen as a milestone in AI adoption by government, critics say the ultimate measure will be whether the program achieves sustainable modernization—or creates costly reliance once pricing rises after 2026.