The Visitor's Center at Microsoft Headquarters campus is pictured July 17, 2014 in Redmond, Washington.Source: Stephen Brashear/Getty Images for Microsoft

What you need to know

  • The Pentagon awarded Microsoft its JEDI cloud computing contract in 2019.
  • Amazon claims that foul play led to it losing the contract.
  • The litigation headaches are big enough that the Pentagon is reportedly considering nixing the whole project.

It seems the fights over JEDI aren't stopping anytime soon. After being awarded to Microsoft in 2019, the Pentagon's JEDI cloud-computing project and its associated contract have been the subject of legal controversy as Amazon has claimed the Trump administration interfered with the awarding of the deal. Based on a new report, it seems the Pentagon's tolerance for JEDI headaches is nearing an end.

According to The Wall Street Journal, Pentagon officials are toying with the idea of killing the JEDI project, given how much of an annoyance it's become. Thanks to Amazon's litigation efforts, the $10 billion deal may not be a win for the company, but it will at least be a mutual loss for both it and its competitor Microsoft.

With that being said, Microsoft has another lucrative government deal in the works thanks to its successful IVAS prototype netting it an almost $22 billion contract with the U.S. Army. However, losing a $10 billion contract is bound to be an unpleasant reality for the tech giant if the Pentagon decides to scrap JEDI and reassess its cloud computing plans.

This development from the Pentagon comes not long after a judge denied requests from Microsoft and the U.S. Justice Department to dismiss Amazon's claims.