Oracle is offering the US federal government agencies a significant discount on both cloud computing and software, according to the General Services Administration (GSA).

As reported by the Wall Street Journal, Oracle has offered government agencies a 75 percent discount on its software, databases, and analytics, as well as a "substantial" discount on cloud computing services through the end of November.

Oracle declined to comment to the WSJ on the scale of the cloud discount.

As a result of the deal, Big Red will provide the federal government with access to its AI services, and is also assisting with migrating IT systems to the cloud.

“The Trump administration is focused on ensuring that we are delivering the most cutting-edge technology to optimize and pull forward federal government systems into the modern era,” said Federal Acquisition Service Commissioner Josh Gruenbaum. “Breaking down silos and enhancing interoperability to provide maximum transparency is where a lot of waste, fraud, and cost takeout is going to come from.”

“We remain steadfast in our commitment to the US government and are thrilled to work with the GSA to help every department and agency modernize their technology and gain the benefits of Oracle Cloud and AI,” added Oracle CEO Safra Catz.

Oracle has been increasingly targeting government contracts. In June 2025, it launched an air-gapped version of its on-premises Cloud@Customer solution for high-security use cases - including government workloads. Additionally, the company announced a new "Defense Ecosystem" industry coalition that will increase access to its cloud computing offering.

The Oracle Defense Ecosystem is targeting US and allied national security organizations and will provide access to Oracle's cloud and AI technologies.

Oracle was previously one of the winners of the Joint Warfighting Cloud Capability contract in 2022, a $9bn deal split with AWS, Google, and Microsoft. In April 2025, the US Army expanded its use of Oracle Cloud Infrastructure under a $222.53m task order. The company was also chosen by the US Department of Agriculture (USDA) for the STRATUS contract.

The discount from Oracle is, according to the GSA, the first of its kind to provide the entire government with a discount on cloud infrastructure. The GSA is looking to negotiate similar deals with other cloud providers.

“Through procurement consolidation, we’re aiming to bring the leverage of the whole, commanding purchasing power of the federal wallet to these [technology providers] to get the best discounts for the taxpayers,” said Gruenbaum.

The GSA is also looking to negotiate longer-term deals, with the Oracle discount only running until November 2025.