Pentagon cancels JEDI contract with Microsoft amid dispute from Amazon
![Pentagon](https://cdn.mos.cms.futurecdn.net/ZQHypTFtK7gLYdcgdZvEG3-1024-80.jpg)
The Pentagon is officially scrapping its $10 billion JEDI contract with Microsoft that was disputed by Amazon, citing the fact that it "no longer meets its needs."
The Defense Department announced Tuesday that the Joint Enterprise Defense Infrastructure cloud contract is being canceled almost two years after it was awarded to Microsoft, The Washington Post reports. Amazon had been challenging the contract, arguing the process that resulted in it being awarded to Microsoft was "tainted by politics," The Associated Press writes. The contract "would have resulted in Microsoft building a cloud storage system for sensitive military data and technology," CNN reports.
Amazon has alleged that former President Donald Trump used "improper pressure" to divert the contract away from Amazon in an attempt to harm "his perceived political enemy," then-CEO Jeff Bezos. Earlier this year, a judge rejected an attempt to dismiss Amazon's allegations. While this legal dispute has been happening, "the Defense Department has been unable to move forward with the contract it awarded to Microsoft," the Post notes.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
![https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg](https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516-320-80.jpg)
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Ultimately, Defense Department said Tuesday that "due to evolving requirements, increased cloud conversancy, and industry advances, the JEDI Cloud contract no longer meets its needs." The Pentagon will now solicit bids from Microsoft and Amazon for a new contract, according to CNN.
This decision came as a "massive financial blow to Microsoft," the Post wrote, though the company acknowledged that the Defense Department "faced a difficult choice: continue with what could be a years-long litigation battle or find another path forward."
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Brendan worked as a culture writer at The Week from 2018 to 2023, covering the entertainment industry, including film reviews, television recaps, awards season, the box office, major movie franchises and Hollywood gossip. He has written about film and television for outlets including Bloody Disgusting, Showbiz Cheat Sheet, Heavy and The Celebrity Cafe.
-
5 meritorious cartoons about the war on DEI
Cartoons Artists take on self-evident truths, recent history, and more
By The Week US Published
-
Bucatini alla zozzona recipe
The Week Recommends Classic Roman dish is 'slurpy, fun and absolutely heavenly'
By The Week UK Published
-
The UK 'spy cops' scandal, explained
The Explainer Undercover police targeting activist groups conducted intrusive surveillance, with some even embarking on relationships under assumed identities
By The Week UK Published
-
Trump's China tariffs start after Canada, Mexico pauses
Speed Read The president paused his tariffs on America's closest neighbors after speaking to their leaders, but his import tax on Chinese goods has taken effect
By Peter Weber, The Week US Published
-
Chinese AI chatbot's rise slams US tech stocks
Speed Read The sudden popularity of a new AI chatbot from Chinese startup DeepSeek has sent U.S. tech stocks tumbling
By Peter Weber, The Week US Published
-
US port strike averted with tentative labor deal
Speed Read The strike could have shut down major ports from Texas to Maine
By Peter Weber, The Week US Published
-
Biden expected to block Japanese bid for US Steel
Speed Read The president is blocking the $14 billion acquisition of U.S. Steel by Japan's Nippon Steel, citing national security concerns
By Peter Weber, The Week US Published
-
Judges block $25B Kroger-Albertsons merger
Speed Read The proposed merger between the supermarket giants was stalled when judges overseeing two separate cases blocked the deal
By Peter Weber, The Week US Published
-
Rupert Murdoch loses 'Succession' court battle
Speed Read Murdoch wanted to give full control of his empire to son Lachlan, ensuring Fox News' right-wing editorial slant
By Peter Weber, The Week US Published
-
Bitcoin surges above $100k in post-election rally
Speed Read Investors are betting that the incoming Trump administration will embrace crypto
By Peter Weber, The Week US Published
-
Enron mystery: 'sick joke' or serious revival?
Speed Read 23 years after its bankruptcy filing, the Texas energy firm has announced its resurrection
By Peter Weber, The Week US Published