The tech companies are fighting over a $10 billion Pentagon contract.

Cloud City

At the end of August, the Pentagon will award a $10 billion contract to a tech company that will build it a so-called "war cloud."

The AI-driven cloud computing network, formally called the Joint Enterprise Defense Infrastructure (JEDI) plan, is expected to vastly improve the U.S. military's ability to plan and engage in warfare, reports the Associated Press. Right now, the contract will likely go to Amazon or Microsoft, but accusations that the Pentagon plays favorites with Amazon have slowed the bidding process.

Winner Take All

With an existing contract to build a high-security cloud system for the CIA, Amazon already has close ties with military leaders. Oracle, which was eliminated from an earlier round of bidding, sued over allegations that the contract for JEDI was tailor-made for Amazon, the AP reports.

A hearing is scheduled for Wednesday, during which Oracle representatives will state their case that the bidding war wasn't a fair fight, and military leaders will likely express a desire to move forward with the contract.


In a June court filing reviewed by the AP, Lt. General Bradford Shwedo said that delays caused by Oracle's case will "hamper our critical efforts in AI."

He went on to say that those delays could mean that the U.S. loses its technological advantage over others who are "weaponizing their use of data."

READ MORE: Amazon, Microsoft wage war over the Pentagon’s ‘war cloud’ [The Associated Press]

More on military contracts: Ungrateful Google Plebes Somehow Not Excited to Work on Military Industrial Complex Death Machines

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