WASHINGTON, Sept 2 (Reuters) - Microsoft ( MSFT ) has agreed to

give U.S. agencies a discount on its cloud services, the General

Services Administration said Tuesday, as part of the

administration's push to sign deals with tech companies for

departments across the executive branch.

The deal will save the U.S. government up to $3 billion in

the first year, according to GSA and Microsoft ( MSFT ). Reuters could

not immediately verify that figure.

As part of the agreement, the company will offer free access

to Microsoft Copilot, its generative AI chatbot, to existing

federal government users, according to the company. Agencies can

also get lower prices on cloud products such as Microsoft

Sentinel and Azure Monitoring.

Agencies can opt in to the offer through Sept. 2026,

according to GSA.

GSA, the agency responsible for signing government-wide

deals with vendors, has announced similar deals in recent weeks.

The agency in August announced that cloud competitors Google and

Amazon Web Services had agreed to discounts. The goal is to

offer commercial AI tools across the federal government,

according to GSA.