Judge grants Amazon bid to pause Pentagon's JEDI cloud contract

Judge grants Amazon bid to pause Microsoft's Pentagon contract work

Judge grants Amazon bid to pause Microsoft's Pentagon contract work

A federal court has ordered the Pentagon to temporarily halt work with Microsoft on a $10 billion military cloud contract that Amazon was initially favoured to win. Amazon sued in December to revisit that decision, alleging that Donald Trump's bias against the company hurt its chances to win the project.

Microsoft in October won the Pentagon's Joint Enterprise Defense Infrastructure, or JEDI, cloud contract, estimated to be worth as much as $10 billion over a decade. It's meant to improve the Pentagon's communications with soldiers on the battlefield and would use artificial intelligence to speed up its war planning and fighting capabilities. The contract is meant to give the military better access to data and technology from remote locations. But he said the Pentagon remained sure of its decision to choose Microsoft.

Microsoft said in a statement Thursday that it was disappointed by the additional delay, but said it believes that it will ultimately be allowed to move forward with the project.

The Pentagon's mistakes in the contract were "hard to understand and impossible to assess" when separated from Trump's "repeatedly expressed determination to, in the words of the president himself, 'screw Amazon, '" court documents filed by Amazon argued.

Amazon has alleged it was shut out of the deal because of President Donald Trump's vendetta against the company and is seeking testimony from the president and other top officials on the reasons for awarding the $10 billion USA military cloud computing contract.

Telecoms operator AT&T made similar claims after the United States took action to block its takeover of Time-Warner, which owns CNN.

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Amazon also seeks to question other officials involved in the decision and alleged that Trump had a history of inappropriately intervening in governmental decisions.

Amazon and Microsoft did not immediately respond to requests for comment.

Amazon and Microsoft are industry leaders among cloud services providers.

Amazon asked the court to halt work on the project last month.

As a condition of the injunction, Amazon was directed to provide $42 million that would be used to cover any costs or damages incurred if it is determined that the injunction was issued wrongly.

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