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Anthropic Offers Claude AI Chatbot to U.S. Government for $1

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Anthropic, the AI startup backed by Amazon.com, announced it will offer its Claude AI model to the U.S. government for just $1. The move makes Claude one of several AI tools available to federal agencies at minimal cost, as startups compete for lucrative government contracts.

This announcement follows the inclusion of Claude, OpenAI’s ChatGPT, and Google’s Gemini on the government’s list of approved AI vendors. CEO Dario Amodei stated, “America’s AI leadership requires that our government institutions have access to the most capable, secure AI tools available.”

OpenAI made a similar offer last week, providing ChatGPT Enterprise to participating federal agencies for $1 per agency for the next year. Anthropic’s initiative highlights the growing competition among AI companies to provide secure and advanced technologies to the U.S. government.

Amazon Web Services to Deliver Up to $1 Billion in Savings to U.S. Government for Cloud Modernization

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Amazon Web Services (AWS) has entered into an agreement with the U.S. General Services Administration (GSA) to provide federal government agencies with up to $1 billion in savings through incentives aimed at cloud adoption, IT modernization, and training programs. This initiative is set to run through the end of 2028 and is designed to accelerate large-scale digital transformation across government departments while fostering innovation in artificial intelligence.

The U.S. federal government spends over $100 billion annually managing and updating its IT infrastructure, a process historically challenged by outdated systems. AWS, which supports more than 11,000 government agencies worldwide, has secured billions in contracts to assist in transitioning federal agencies to cloud-based platforms.

The $1 billion incentive credits will be distributed across civilian federal agencies and include savings on core AWS cloud services, modernization efforts, and training resources. AWS CEO Matt Garman described the deal as a “significant milestone” in government digital transformation, highlighting the provision of expert support and training to facilitate cloud migration.

The agreement aligns with broader federal efforts to reduce IT costs, improve efficiency, enhance innovation, and maintain U.S. leadership in AI technologies. In recent years, the Pentagon has awarded multi-billion dollar cloud contracts to AWS and other tech giants such as Microsoft, Google, and Oracle. This follows the Joint Warfighting Cloud Capability program, a successor to the controversial $10 billion JEDI contract, which AWS contested after it was awarded to Microsoft amid allegations of political interference.

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.