Amazon (AMZN)-backed Anthropic is making moves to deepen its relationship with the U.S. government. The company announced it will provide its advanced AI models, Claude for Enterprise and Claude for Government, to all three branches of the federal government for a discounted price of just $1 per agency for a full year.
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Anthropic’s deal with the U.S. General Services Administration (GSA) gives agencies across all branches access to its AI tools, along with support to help them use the technology smoothly.
It must be noted that Anthropic’s AI models are already approved for sensitive government work, including projects with the Department of Defense and a top national lab.
AI Firms to Speed Up Government Adoption
AI companies are making it easier and cheaper for federal agencies to use advanced technology. Through the GSA’s OneGov program, OpenAI, Anthropic, and others are offering their enterprise-grade models for just $1 per year. The goal is to help government agencies adopt AI faster.
OpenAI’s ChatGPT Enterprise is now available to all federal agencies for $1, with added security, privacy features, and custom training. Amazon AWS and Oracle (ORCL) are also offering up to $1 billion in cloud and AI credits through 2028 to help modernize government systems.
Importantly, AI companies view working with the government as a way to shape future rules, standards, and systems. By getting their tools into everyday government use, they are making themselves key players in areas like defense and healthcare.
Is Amazon a Buy, Hold, or Sell?
Turning to Wall Street, AMZN stock has a Strong Buy consensus rating based on 43 Buys and one Hold assigned in the last three months. At $264.40, the average Amazon stock price target implies a 19.10% upside potential.
