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January 25, 2026

Two senators look to reign in big tech’s influence in defense AI, cloud contracts Ali Guerra | usagoldmines.com

Two senators want to reign within the outsized affect tech giants equivalent to Google, Microsoft and Amazon have over the cloud computing and synthetic intelligence protection contracting area.

Sens. Elizabeth Warren, (D-Mass.), and Eric Schmitt, (R-Mo.), launched laws on Thursday that, if handed, would require the Protection Division to make sure there’s a “aggressive award course of” when procuring cloud computing, knowledge infrastructure and AI fashions.

“Proper now, all of our eggs are in a single large Silicon Valley basket. That doesn’t solely stifle innovation, nevertheless it’s dearer and it significantly will increase our safety dangers. Our new invoice will guarantee that because the Division of Protection retains increasing its use of AI and cloud computing instruments, it’s making good offers that may preserve our data safe and our authorities resilient,” Sen. Warren mentioned in a press release.

Warren, a vocal critic of huge tech giants, has lengthy known as for breaking them up  — she campaigned in 2020 on the message that large expertise corporations have “bulldozed competitors” and “squashed small enterprise and innovation.”

In the meantime, Schmitt, who’s on the Senate Armed Companies Committee together with Warren, has expressed concerns prior to now concerning the Protection Division’s overreliance on main expertise corporations for cloud computing and cybersecurity companies and has advocated for elevated competitors to drive innovation within the protection sector.

“Competitors and innovation are crucial drivers of the Division of Protection’s capacity to take care of its strategic benefit, making certain that protection contractors, expertise builders, and inner DoD groups are continuously striving to ship cutting-edge options,” Schmitt mentioned.

Particularly, the new bill would require the Protection Division to have a aggressive award course of when contracting with cloud, superior AI methods, or knowledge infrastructure distributors that enter into contracts of $50 million or extra with DoD yearly.

The invoice would additionally require the Protection Division to make sure that it maintains unique rights to entry and use of all authorities knowledge. 

The DoD’s contracting course of must prioritize the “acceptable function for the federal government” with respect to mental property and knowledge rights and safety, interoperability, and auditability necessities; incorporate modular open methods approaches and “acceptable work allocation;” and take into account multi cloud technique the place “possible and advantageous.”

The invoice would additionally mandate the Pentagon’s chief digital and synthetic intelligence workplace to replace the Protection Federal Acquisition Regulation Complement provisions to guarantee that authorities knowledge offered by the federal government for improvement and operation of AI merchandise to DoD gained’t be disclosed or used with out authorization from the DoD. 

As well as, the CDAO must make sure that authorities knowledge saved on distributors’ methods is protected against different knowledge on these methods and segregated from different knowledge on their methods and complies with DoD’s knowledge decrees and Creating Knowledge Benefit (Open DAGIR) rules.

Distributors who violate these provisions would face penalties, together with fines or contract termination, in keeping with the invoice. 

DoD would even be required to publish a report each 4 years analyzing competitors, obstacles to entry for small corporations and market energy focus within the AI sector.

The invoice comes at a time when the Pentagon is pouring billions of {dollars} into AI and cloud companies — simply final month it got here out with the primary draft of what could possibly be the largest authorities AI contract in historical past.

And in 2022, the Pentagon awarded the Joint Warfighting Cloud Functionality contract, which might be price as much as $9 billion over 10 years, to Google, Oracle, Microsoft and Amazon. Though DoD officers have shared they want to embrace extra suppliers within the subsequent section of this system.

That is the primary time Warren and Schmitt have collaborated on laws, bringing two sides of the aisle collectively in an try to reign within the dominance of tech giants. The laws must cross the Home and Senate earlier than getting enacted.

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This articles is written by : Nermeen Nabil Khear Abdelmalak

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