Pentagon cancels JEDI contract as Amazon, Microsoft duke it out

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The Defense Department has canceled its Joint Enterprise Defense Infrastructure (JEDI) contract after Amazon and Microsoft sparred for years over the $10 billion cloud computing contract.

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The JEDI contract, which aimed to give the military better access to data from remote locations using cloud technology, was initially expected to go to Amazon before the Defense Department decided to give the award to Microsoft in October of 2019, prompting a lawsuit from Amazon.

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"With the shifting technology environment, it has become clear that the JEDI Cloud contract, which has long been delayed, no longer meets the requirements to fill the DoD's capability gaps," the Pentagon said in a statement.

Amazon Web Services went to court arguing that the Pentagon's process was flawed and unfair, including that it was improperly influenced by then-President Donald Trump's dislike of Amazon and its then-CEO Jeff Bezos. Bezos also owns The Washington Post, a news outlet often criticized by Trump.

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This year the Pentagon had been hinting that it might scrap the contract, saying in May that it felt compelled to reconsider its options after a federal judge in April rejected a Pentagon move to have key parts of Amazon's lawsuit dismissed.

The Associated Press contributed to this report.

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