POLITICO Tech Why AI companies are cutting Trump a deal
9 snips
Sep 4, 2025 
Aaron Levie, CEO of Box, dives into the government's strategic push to acquire AI tech at discounted rates, giving companies like OpenAI a chance to gain a foothold. He discusses the implications of these deals for collaboration and innovation within federal operations. Levie highlights the need for modernization in government to boost efficiency and attract top talent, while navigating the complex intersection of tech and policy. The talk underscores the potential of AI to transform government functions, setting the stage for a tech-savvy future.
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Procurement Plus AI Creates Momentum
- The current administration paired centralized procurement with an AI push to create scale and efficiency in buying tech.
- Aaron Levie argues timing matters because AI is finally ready for broad federal use.
Use Volume Pricing To Seed Adoption
- Offer volume discounts to make enterprise tiers affordable for small agencies and drive adoption.
- Box gave deep discounts to unify pricing so small agencies get large-volume rates.
Low Price As A Strategic Seed
- Dollar-priced offerings act as seeding strategies to build fluency and lock agencies into a vendor ecosystem.
- Levie notes companies want federal users to be familiar with their AI paradigms for future monetization.