Senators introduce bill to ‘limit Big Tech monopolies’ in DOD cloud and AI procurement

In this article:

1. New Bipartisan Legislation for AI and Cloud Competition: Senators Elizabeth Warren (D-Mass.) and Eric Schmitt (R-Mo.) have introduced the Protecting AI and Cloud Competition in Defense Act, aiming to foster competition in Pentagon cloud and AI contracts.

2. Addressing Big Tech Monopolies: The legislation seeks to curb monopolistic dominance by major tech companies, encouraging innovation, cost efficiency, and improved security for defense technology.

   • Warren emphasized the risks of over-reliance on Silicon Valley firms, highlighting the potential for higher costs and security vulnerabilities.
   • Schmitt stressed the bill’s focus on ensuring resiliency, interoperability, and innovation in defense technology procurement.

3. Key Provisions:

   • The bill mandates competitive bidding for cloud computing, data infrastructure, and foundation model solutions in contracts exceeding $50 million with the Pentagon.
   • The bill emphasizes government oversight on intellectual property, data security, modular systems, and leveraging multi-cloud technology where feasible.
   • It mandates updates to acquisition regulations to safeguard government-furnished data used in AI development, ensuring its secure handling and compliance with DoD data policies.
   • The bill also contains reporting requirements.

4. Impact on Defense Procurement: As both senators serve on the Senate Armed Services Committee, the legislation reflects a bipartisan push to diversify the Pentagon’s AI and cloud ecosystem while maintaining robust safeguards for critical defense systems.