The U.S. General Services Administration said Thursday that Amazon Web Services has agreed to provide federal civilian agencies with up to $1 billion in incentive credits that can be used for AWS cloud infrastructure, application-modernization projects and training through Dec. 31, 2028. The agency expects the government-wide deal to lower the cost of replacing aging on-premise systems and accelerate adoption of artificial-intelligence tools across departments. AWS Chief Executive Matt Garman described the arrangement as “a significant milestone in the large-scale digital transformation of government services.” The agreement is part of the GSA’s OneGov purchasing strategy, which aggregates demand to secure lower prices. It follows similar discounts announced in recent weeks with Oracle and with OpenAI, which is offering ChatGPT access to agencies for $1. Washington spends more than $100 billion annually on information technology, and the Pentagon awarded $9 billion in multi-cloud contracts in 2022. AWS says it already supports more than 11,000 government agencies worldwide.