Pentagon cancels $10bn \`JEDI\` contract

The Pentagon is cutting a multibillion dollar cloud computing contract_ which sparked a row between Microsoft and Amazon.

The US Department of Defense said the 10 billion US Dollar contract no longer met its current needs due to the "shifting technology environment".

Microsoft was awarded the contract_ but Amazon claimed President Trump had influenced the decision. Amazon and Microsoft will both have the opportunity to bid for a new contract.

After Microsoft won the massive Joint Enterprise Defense Infrastructure (JEDI) contract_ it drew complaints and a legal challenge from tech rival Amazon_ which claimed that the choice was politically motivated.

The Department of Defense (DoD) said in a statement on Tuesday: "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."

It added that it would seek new proposals "from a limited number of sources"_ including both Amazon and Microsoft.

The two tech giants are the only suppliers it said would be capable of meeting the brief_ although it would consider other firms.

The Jedi system was designed to replace the DoD's ageing computer networks with one single cloud system_ which would have hosted classified secrets and provided artificial intelligence-based analysis to the military.

But after the work was awarded to Microsoft in 2019_ Amazon - which was seen as the favourite for the project - filed a legal challenge to object.