Google (NASDAQ:GOOGL) is set to offer steep discounts on its cloud computing services to the U.S. government, as the Trump administration ramps up efforts to reduce costs on long-standing tech contracts, the Financial Times reported on Friday, citing a senior General Services Administration (GSA) official.
The move follows Oracle’s (NYSE:ORCL) agreement last week to provide discounts of up to 75% on select software contracts, with substantial reductions on its broader cloud offerings.
Google’s deal is expected to be finalized within weeks and “will land in a similar spot,” the report stated.
U.S. administration’s pressure campaign is part of a wider cost-cutting initiative, led by the Department of Government Efficiency (DOGE), formerly run by Elon Musk. The program aims to rein in over $20 billion in annual cloud spending across federal agencies, the FT reported.
The GSA expects Microsoft (NASDAQ:MSFT) Azure and Amazon (NASDAQ:AMZN) Web Services to follow suit, though talks are reportedly less advanced, according to the report.
The initiative also extends to renegotiating contracts with consulting firms and rideshare companies. Tech giants are working to maintain positive ties with Trump’s government following tense relations during his first term, the FT said.
