Oracle (ORCL) has announced significant price reductions on its database and cloud-computing services for the U.S. government through November 2025. This move aligns with the Trump administration’s efforts to modernize federal systems while cutting operational costs. Despite the announcement, Oracle’s stock fell by 1.5%, retreating from an all-time high reached the previous Thursday. The company’s strategic shift aims to position it as a leading provider in government tech modernization efforts.
The General Services Administration (GSA) revealed that the new agreement provides government agencies with a 75% discount on Oracle’s license-based technologies. Additionally, agencies will benefit from substantial base discounts and access to advanced tools such as Oracle Database 23ai on Oracle Cloud Infrastructure (OCI). The deal offers federal agencies a more unified and cost-effective path to digital transformation through advanced cloud and AI technologies.
Oracle Slashes Prices for U.S. Government Cloud Services in Landmark AI-Driven GSA DealOracle-GSA Partnership Taps AI to Modernize Federal Tech and Cut Government Costs
Oracle CEO Safra Catz expressed enthusiasm about collaborating with the GSA, emphasizing the benefits of AI-powered cloud services for increased efficiency and lower government spending. She highlighted that Oracle’s cloud capabilities would enable agencies to accomplish more with fewer taxpayer dollars. This reflects Oracle’s broader strategy of leveraging AI to drive productivity and cost savings in public sector operations.
Acting GSA Administrator Stephen Ehikian called the partnership a “landmark agreement” and a major milestone in the administration’s push to modernize federal infrastructure using commercial technologies. The deal is part of the GSA’s OneGov initiative, which centralizes government purchasing power to secure better pricing.
Other tech giants like Google, Adobe, Salesforce, and Elastic have also participated in similar agreements. Despite the dip in share price, Oracle’s stock has surged around 40% this year, underlining investor confidence in its long-term prospects.
