The Department of Defense on Tuesday revealed that it is canceling a $10 billion cloud agreement that was in the center of a legal fight that included Amazon and Microsoft, CNBC informed.
The Department also said that it is revealing a fresh new contract, soliciting proposals from the two companies in which both will be set to score a reward.
The Joint Enterprise Defense Infrastructure or JEDI contract has turned into one of the most complex deals for the Defense Department.
The Pentagon issued a press release on Tuesday, saying that the JEDI deal can no longer meet the needs of the department due to increased cloud conversancy, evolving requirements as well as industry advances.
Microsoft’s shares were decreased by 0.4% after the news emerged, while Amazon’s stocks were up 3.5% after they already reached a 52-week high.