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U.S. Agency Approves OpenAI, Google, and Anthropic for Federal AI Vendor List

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The U.S. General Services Administration (GSA) has approved OpenAI’s ChatGPT, Google’s Gemini, and Anthropic’s Claude as official AI vendors for federal agencies, the agency announced Tuesday. This move supports the Trump administration’s push to expand AI adoption across government sectors.

The approvals come as part of a broader AI blueprint released on July 23, which seeks to ease environmental regulations and increase AI exports to allied countries to help the U.S. maintain its technological edge over China.

With the GSA’s approval, these AI tools will be accessible to federal agencies through a platform that streamlines contracts and usage terms. The agency emphasized that it prioritizes AI models that ensure truthfulness, accuracy, transparency, and freedom from ideological bias.

President Donald Trump has described the AI race as a defining challenge of the 21st century. His administration’s AI plan includes around 90 recommendations focused on promoting U.S. AI software and hardware exports, while rolling back state laws seen as restrictive to AI innovation.

This approach contrasts sharply with the Biden administration’s “high fence” policies, which placed more stringent safeguards on AI use within federal agencies, including monitoring and assessing AI’s impact on the public. Biden also signed an executive order aimed at fostering competition, protecting consumers, and combating misinformation—measures that were later rescinded by Trump.

Google Hires Key Windsurf Executives in $2.4 Billion Deal to Boost AI Coding Efforts

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Alphabet’s Google has secured several leading staff members from AI code-generation startup Windsurf as part of a $2.4 billion licensing deal, the companies announced on Friday. The deal grants Google non-exclusive rights to use some of Windsurf’s technology but does not involve Google taking any ownership stake or controlling interest in the startup.

Windsurf CEO Varun Mohan, co-founder Douglas Chen, and members of the startup’s research and development team will join Google’s DeepMind AI division, focusing on advancing agentic coding projects, particularly the Gemini initiative. This move follows months of Windsurf’s discussions with OpenAI about a potential acquisition valued at around $3 billion.

Google praised the acquisition of top AI coding talent, positioning the deal as a strategic win to accelerate innovation in AI-assisted coding tools. Windsurf investors will gain liquidity through the licensing fees while maintaining their stakes in the company.

This deal is part of a growing trend of “acquihire” arrangements in the tech sector, where major companies hire startup teams without acquiring full ownership, often sidestepping regulatory scrutiny. Microsoft, Amazon, and Meta have all engaged in similar deals in recent years, sparking some antitrust investigations.

Windsurf will continue operating independently with most of its approximately 250 employees remaining, and Jeff Wang stepping in as interim CEO, with Graham Moreno appointed as president. The startup plans to prioritize product innovation for enterprise clients going forward.

Google Set to Offer Significant Cloud Service Discounts to U.S. Government, FT Reports

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Google is preparing to offer steep discounts on its cloud computing services to the U.S. government, with a deal possibly finalized within weeks, according to the Financial Times. This move aligns with President Donald Trump’s broader push to reduce federal spending.

Last week, the Wall Street Journal reported that Oracle will provide federal agencies with a 75% discount on its license-based software and a substantial reduction on its cloud services through the end of November. Google’s upcoming cloud contract is expected to offer similar discounts, the FT said, citing a senior official from the General Services Administration (GSA). Discounts from Microsoft Azure and Amazon Web Services are also anticipated to follow soon.

The GSA official told the FT, “Every single one of those companies is totally bought in, they understand the mission. We will get there with all four players.”

Neither Google nor the GSA immediately responded to Reuters’ requests for comment outside business hours. In April, Google agreed to provide a 71% discount on its business apps package for federal agencies through September 30, a deal that could yield up to $2 billion in government-wide savings if broadly adopted.