A bipartisan duo of senators is working to revive legislation aimed at breaking the dominance of major tech companies like Amazon, Microsoft, and Google over the Pentagon’s cloud computing and AI contracts. The Protecting AI and Cloud Competition in Defense Act is set to be reintroduced by Democratic Senator Elizabeth Warren from Massachusetts and Republican Senator Eric Schmitt from Missouri. This version of the bill will also be presented for the first time in the House.

The primary aim of the legislation is to foster competition for the substantial AI and cloud contracts currently held by big tech firms. If enacted, the Department of Defense would be mandated to conduct competitive bidding for contracts worth $50 million or more. Additionally, the bill seeks to diminish barriers that hinder startups and nontraditional contractors from participating in the bidding process.

This legislative effort highlights a balancing act for lawmakers. While there is a growing call to enhance the U.S. technological edge and expand AI usage within federal operations, there are also persistent concerns regarding the potential consolidation of power among Silicon Valley’s largest corporations.

Warren emphasized this sentiment, stating that maintaining a monopoly in AI and cloud computing tools suppresses innovation, raises costs, and poses risks to national security. Both Warren and Schmitt, who serve on the Senate Armed Services Committee, initially put forth the bill in December during the closing weeks of the Biden administration, but it did not gain traction at that time. However, it has recently regained momentum, buoyed by new federal procurement policies aimed at promoting a competitive AI landscape.

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