The Wall Street Journal reported on Monday that Pentagon officials are scrapping the JDI cloud-computing project.
Amazon, which was seen as the front-runner to win the $ 10 billion JEDI project that went to Microsoft in 2019, has argued that the contracting process reflects the undue influence of former President Trump.
A judge of US federal claimants last month denied Amazon’s claims, accusing it of interfering with the Pentagon’s award by the Trump administration.
Last year, the US Department of Defense completed a comprehensive reevaluation of its contract proposals and determined that Microsoft’s representation still represented the best value for the government.
Microsoft said in an email statement on Monday that it was willing to give up on JEDI, but the litigation battle was damaging.
“We agree with the US Departments of Defense and Justice that protracted litigation is harmful and that this technology is delayed when our military service members need it,” Microsoft said.
Amazon’s cloud unit reiterated its previous stance, claiming the JEDI reevaluation of its contract proposals by the “undue influence” of former President Trump.
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