Pentagon scraps JEDI award to Microsoft, will rebid

The U.S. Defense Department cancelled its $10 billion JEDI cloud-computing project on Tuesday and will rebid a multiple vendor contract, saying in a statement that tech giants Microsoft Corp and Amazon.com are the only providers "capable of meeting the department's requirements." The now-cancelled Joint Enterprise Defense Infrastructure Cloud (JEDI) contract was budgeted for as much as $10 billion and was part of a broader digital modernization of the Pentagon aimed at making it more technologically agile.

The U.S. Defense Department cancelled its $10 billion JEDI cloud-computing project on Tuesday and will rebid a multiple vendor contracts, saying in a statement that tech giants Microsoft Corp and Amazon.com are the only providers "capable of meeting the department's requirements."

The now-cancelled Joint Enterprise Defense Infrastructure Cloud (JEDI) contract was budgeted for as much as $10 billion and was part of a broader digital modernization of the Pentagon aimed at making it more technologically agile. The contract was awarded to Microsoft in 2019, but Amazon quickly filed a lawsuit to object. Amazon, which was seen as a front-runner to win the project, has argued the contract process reflected undue influence from former President Donald Trump.

While president, Trump publicly derided then-Amazon CEO Jeff Bezos and repeatedly criticized the company. A U.S. Court of Federal Claims judge in April refused to dismiss Amazon's claims.