GI was originally an abbreviation for "galvanized iron", a US army clerks' term for items such as trash cans, but it was later taken to be an abbreviation for "general issue" or "government issue", and extended to include all articles issued in conformity with US military regulations or procedures and finally soldiers themselves ("general infantry").
The term became popular after the action figure "GI Joe" became common. The title of the 1997 movie GI Jane is based on this as well.
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