Google Launches Gemini for Government in Heated AI Contract Race
Google has entered the competitive arena for US government AI contracts with the introduction of Gemini for Government. This custom version of its Gemini AI models is designed specifically for federal agencies, putting it in direct competition with similar offerings from OpenAI, Anthropic, and Elon Musk’s xAI.
The new platform provides agencies with access to a suite of AI tools, including the NotebookLM research assistant and what Google describes as its enterprise-grade search, video, and image generation capabilities. A central part of Google’s sales pitch is the use of AI agents to automate routine administrative tasks. The company is offering pre-built agents for deep research and idea generation from the start, while also giving agencies the tools to develop their own custom AI agents to meet specific needs.
Data security and compliance are key features of the offering. Google states that Gemini for Government will include advanced threat protection and data privacy features. Crucially, the platform is built to be compliant with stringent federal cloud security standards, including FedRAMP and the security requirements for impact level four workloads, known as Sec4.
In a move that undercuts its rivals, Google is offering its AI platform to government agencies for a base price of fifty cents per user per year. This aggressive pricing is both an enticement for cash-conscious agencies and a direct challenge to competitors. Both OpenAI and Anthropic recently announced their own government AI deals priced at one dollar per user, making Google’s offer half the cost. Agencies will have the option to pay more for additional, enhanced security features.
This flurry of activity from major AI firms to secure government contracts is unfolding against the backdrop of the AI Action Plan announced by the Trump administration in July. The plan’s stated objectives are to accelerate AI development, establish AI as a key American export, and eliminate what it terms ideological bias from AI models. However, the specifics of the plan are broad and open to interpretation, raising concerns among observers.
Notably, the proposal instructs federal agencies to withhold AI-related funding from states that enact AI regulations deemed burdensome by the administration. It also directs the Federal Communications Commission to take on a new role in regulating AI, a move that critics argue could consolidate significant power over the technology within the executive branch.
The race to provide AI tools to the government signifies a major new market for the technology, with companies now competing not just on capability, but also on price and compliance with federal standards.