Microsoft to supply AI tools to federal agencies in a cost-saving pact
Federal agencies gain access to Microsoft Copilot, Azure, and cybersecurity tools under a unified government-wide pricing strategy.
The US General Services Administration (GSA) has agreed on a significant deal with Microsoft to provide federal agencies with discounted access to its AI and cloud tools suite.
Instead of managing separate contracts, the government-wide pact offers unified pricing on products including Microsoft 365, the Copilot AI assistant, and Azure cloud services, potentially saving agencies up to $3.1 billion in its first year.
The arrangement is designed to accelerate AI adoption and digital transformation across the federal government. It includes free access to the generative AI chatbot Microsoft 365 Copilot for up to 12 months, alongside discounts on cybersecurity tools and Dynamics 365.
Agencies can opt into any of the offers through September next year.
The deal leverages the federal government’s collective purchasing power to reduce costs and foster innovation.
It delivers on a White House AI action plan and follows similar arrangements the GSA announced last month with other tech giants, including Google, Amazon Web Services, and OpenAI.
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