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- The Pentagon has canceled the $10 billion cloud-infrastructure plan it awarded Microsoft in 2019.
- The Pentagon cited "evolving requirements, increased cloud conversancy, and industry advances."
- Amazon filed a complaint accusing the Trump administration of influencing the award process.
- See more stories on Insider's business page.
The Pentagon has canceled the $10 billion cloud-infrastructure contract Microsoft and Amazon were fighting over, CNBC and other outlets reported on Tuesday.
The Department of Defense granted Microsoft the massive contract in 2019. Amazon soon after challenged the grant, claiming former President Trump had improperly influenced the award process due to his numerous public criticisms of the company.
The Pentagon said on Tuesday the agency would call off the contract due to "evolving requirements, increased cloud conversancy, and industry advances," according to a press release reviewed by CNBC.
Microsoft "respects" the Department of Defense's decision to scrap the contract instead of continue a potentially "years-long litigation battle," the company said in a release sent on Tuesday.
"We support them and every military member who needs the mission-critical 21th century technology JEDI would have provided," Microsoft stated.
The agency also announced it would accept proposals from Microsoft and Amazon for a new cloud-computing contract, the Joint Warfighter Cloud Capability, per CNBC.
Experts previously told Insider's Rosalie Chan Jeff Bezos' ownership of the Washington Post, which published critical coverage of the Trump administration, may have worked against Amazon Web Services in the JEDI contract bidding process. Industry analysts had speculated AWS would be the frontrunner for the contract.
The Pentagon and Amazon did not immediately respond to a request for comment.
