Arab Press

بالشعب و للشعب
Wednesday, Nov 19, 2025

Pentagon hands Microsoft $10B 'war cloud' deal, snubs Amazon

Pentagon hands Microsoft $10B 'war cloud' deal, snubs Amazon

The Pentagon awarded Microsoft a $10 billion cloud computing contract , snubbing early front-runner Amazon, whose competitive bid drew criticism from President Donald Trump and its business rivals.
Bidding for the huge project, known as Joint Enterprise Defense Infrastructure, or JEDI, pitted leading tech titans Microsoft, Amazon, Oracle and IBM against one another.

The giant contract has attracted more attention than most, sparked by speculation early in the process that Amazon would be the sole winner of the deal. Tech giants Oracle and IBM pushed back with their own bids and also formally protested the bidding process last year.

Oracle later challenged the process in federal court, but lost .

Trump waded into the fray in July, saying that the administration would “take a very long look” at the process, saying he had heard complaints. Trump has frequently expressed his ire for Amazon and founder Jeff Bezos, who also owns the Washington Post. At the time, he said other companies told him that the contract “wasn’t competitively bid.”

Defense Secretary Mark Esper recused himself from the controversial bidding process earlier this week, citing a conflict of interest because his son works for one of the companies that originally bid.

The JEDI system will store and process vast amounts of classified data, allowing the U.S. military to use artificial intelligence to speed up its war planning and fighting capabilities.

A cloud strategy document unveiled by the Defense Department last year called for replacing the military’s “disjointed and stove-piped information systems” with a commercial cloud service “that will empower the warfighter with data and is critical to maintaining our military’s technological advantage.”

The Pentagon emphasized in an announcement that the process was fair and followed procurement guidelines. It noted that over the past two years, it has awarded more than $11 billion in ten separate cloud-computing contracts, and said the JEDI award “continues our strategy of a multi-vendor, multi-cloud environment.”

The latter statement appeared designed to address previous criticism about awarding such a large deal to one company.

The deal is a major win for Microsoft’s cloud business Azure, which has long been playing catch-up to Amazon’s market leading Amazon Web Services. Microsoft said it was preparing a statement.

Amazon said Friday it was surprised by the decision.

“AWS is the clear leader in cloud computing, and a detailed assessment purely on the comparative offerings clearly lead to a different conclusion,” Amazon spokesman Drew Herdener said in a statement. “We remain deeply committed to continuing to innovate for the new digital battlefield where security, efficiency, resiliency, and scalability of resources can be the difference between success and failure.”

According to a July report from the research firm Gartner, Amazon holds almost 48% of the market for public cloud computing, followed by Microsoft in second place with close to 16%.

Over the last year, Microsoft has positioned itself as a friend to the U.S. military. President Brad Smith wrote last fall that Microsoft has long supplied technology to the military and would continue to do so, despite pushback from employees.

Oracle and IBM were eliminated earlier in the process, leaving Microsoft and Amazon to battle it out at the end.

Google decided last year not to compete for the contract, saying it would conflict with its AI ethics principles. Google employees have been especially vocal in protesting the company’s involvement with government contracts.

“It’s a paradigm changer for Microsoft to win JEDI,” said Dan Ives, managing director of Wedbush Securities. “And it’s a huge black eye for Amazon and Bezos.”

Microsoft, Amazon, Google and other tech giants have faced criticism from their own employees about doing business with the government, especially on military and immigration related projects.
Newsletter

Related Articles

Arab Press
0:00
0:00
Close
President Trump Hosts Saudi Crown Prince Mohammed bin Salman in Washington Amid Strategic Deal Talks
Saudi Crown Prince to Press Trump for Direct U.S. Role in Ending Sudan War
Trump Hosts Saudi Crown Prince: Five Key Takeaways from the White House Meeting
Trump Firmly Defends Saudi Crown Prince Over Khashoggi Murder Amid Washington Visit
Trump Backs Saudi Crown Prince Over Khashoggi Killing Amid White House Visit
Trump Publicly Defends Saudi Crown Prince Over Khashoggi Killing During Washington Visit
President Donald Trump Hosts Saudi Crown Prince Mohammed bin Salman at White House to Seal Major Defence and Investment Deals
Saudi Arabia’s Solar Surge Signals Unlikely Shift in Global Oil Powerhouse
Saudi Crown Prince Receives Letter from Iranian President Ahead of U.S. Visit
Saudi Arabia’s Crown Prince Begins Washington Visit to Cement Long-Term U.S. Alliance
Saudi Crown Prince Meets Trump in Washington to Deepen Defence, AI and Nuclear Ties
Saudi Arabia Accelerates Global Mining Strategy to Build a New Economic Pillar
Crown Prince Mohammed bin Salman Arrives in Washington to Reset U.S.–Saudi Strategic Alliance
Saudi-Israeli Normalisation Deal Looms, But Riyadh Insists on Proceeding After Israeli Elections
Saudis Prioritise US Defence Pact and AI Deals, While Israel Normalisation Takes Back Seat
Saudi Crown Prince’s Washington Visit Aims to Advance Defence, AI and Nuclear Cooperation
Saudi Delegation Strengthens EU–MENA Security Cooperation in Lisbon
Saudi Arabia’s Fossil-Fuel Dominance Powers Global Climate Blockade
Trump Organization Engages Saudi Government-Owned Real-Estate Deal Amid White House Visit
Trump Organization Nears Billion-Dollar Saudi Real Estate Deal Amid White House Diplomacy
Israel Presses U.S. to Tie Saudi F-35 Sale to Formal Normalisation
What We Know Now: Donald Trump’s Financial Ties to Saudi Arabia
Saudi Arabia’s Ambitious Defence Wish List for Washington: From AI Drones to Nuclear Umbrella
Analysis Shows China, Saudi Arabia and UAE among Major Recipients of Climate Finance Loans
Why a Full Saudi–Israel Normalisation Deal Eludes Trump’s Reach
Trump Presses Saudi Arabia to Normalise Ties with Israel as MBS Prepares for White House Visit
US-Saudi Summit Set for November 18 Seeks Defence Pact and Israel Normalisation Momentum
Comcast CEO Brian Roberts Visits Saudi Arabia Amid Potential Bid for Warner Bros. Discovery
Cristiano Ronaldo Embraces Saudi Arabia’s 2034 World Cup Vision with Key Role
Saudi Arabia’s Execution Campaign Escalates as Crown Prince Readies U.S. Visit
Trump Unveils Middle East Reset: Syria Re-engaged, Saudi Ties Amplified
Saudi Arabia to Build Future Cities Designed with Tourists in Mind, Says Tourism Minister
Saudi Arabia Advances Regulated Stablecoin Plans with Global Crypto Exchange Support
Saudi Arabia Maintains Palestinian State Condition Ahead of Possible Israel Ties
Chinese Steel Exports Surge 41% to Saudi Arabia as Mills Pivot Amid Global Trade Curbs
Saudi Arabia’s Biban Forum 2025 Secures Over US$10 Billion in Deals Amid Global SME Drive
Saudi Arabia Sets Pre-Conditions for Israel Normalisation Ahead of Trump Visit
MrBeast’s ‘Beast Land’ Arrives in Riyadh as Part of Riyadh Season 2025
Cristiano Ronaldo Asserts Saudi Pro League Outperforms Ligue 1 Amid Scoring Feats
AI Researchers Claim Human-Level General Intelligence Is Already Here
Saudi Arabia Pauses Major Stretch of ‘The Line’ Megacity Amid Budget Re-Prioritisation
Saudi Arabia Launches Instant e-Visa Platform for Over 60 Countries
Dick Cheney, Former U.S. Vice President, Dies at 84
Saudi Crown Prince to Visit Trump at White House on November Eighteenth
Trump Predicts Saudi Arabia Will Normalise with Israel Ahead of 18 November Riyadh Visit
Entrepreneurial Momentum in Saudi Arabia Shines at Riyadh Forward 2025 Summit
Saudi Arabia to Host First-Ever International WrestleMania in 2027
Saudi Arabia to Host New ATP Masters Tournament from 2028
Trump Doubts Saudi Demand for Palestinian State Before Israel Normalisation
Viral ‘Sky Stadium’ for Saudi Arabia’s 2034 World Cup Debunked as AI-Generated
×