Amazon chairman Jeff Bezos, 57, has become the richest man in history, with a net worth of $211 billion, after the Pentagon terminated Microsoft’s JEDI contract.
According to the Bloomberg Billionaires Index, Bezos increased his net worth by $8.4 billion on Tuesday alone, as Amazon shares climbed 4.7 percent in response to the Pentagon’s decision to terminate the $10 billion JEDI deal with Microsoft.
Bezos’ profits have been helped by Amazon’s surging stock. He still holds over 51 million shares of Amazon stock, which accounts for the great majority of his fortune. It pushed Bezos above Tesla CEO Elon Musk’s previous record of $210 billion. Musk currently owns only $181 billion, putting him in second place behind Bezos, reported Daily Mail.
Jeff Bezos becomes the richest man in history with $211 billion net worth as Amazon shares soar after Pentagon canceled JEDI contract rival Microsoft— IntoTheMystic (@Mystic_Sailor) July 7, 2021
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Amazon stock rose sharply on Tuesday after the U.S. Defense Department scrapped its $10 billion JEDI cloud-computing project, reversing a Trump-era award to Microsoft Corp. (MSFT.O) and announcing a new contract that will likely involve Amazon.com (AMZN.O) and other cloud providers.
According to John Sherman, the Pentagon’s top information officer, “the environment has altered” with new possibilities for large-scale cloud computing services throughout the lengthy court battle with Amazon. He believed that the three other major cloud service providers—Google, IBM, and Oracle—may also be eligible.
Sherman stated that the threat of endless litigation was not the driving cause behind the Pentagon’s shift. Instead, he explained, “This is really about mission need. … Because JEDI was conceived over three and a half years ago, we have moved to a different place,” in terms of cloud advances.
Republican Senator Chuck Grassley praised the Pentagon’s decision, reported Reuters.
“The JEDI contract has been burdened by potential conflicts of interest, size, needless delays and its single awardee structure,” Grassley said, saying a new review process “will afford the program an opportunity for greater public trust and confidence.”
According to analysts, meeting all of the U.S. military’s security criteria would have been a conspicuous stamp of approval likely to convince other corporate and government clients.
Microsoft and Amazon will not be automatically given the contract and would have to submit proposals detailing how they can meet the government’s standards.
According to a Pentagon information sheet, the Defense Department plans to impose standards such as managing sensitive data at different classification levels, global availability of cloud services in tactical contexts, and strengthened cybersecurity controls.
The JEDI term on the initial contract was meant to conjure up images of “Star Wars.” That ten-year initiative, estimated to cost $10 billion, was supposed to be the significant data repository for all military services worldwide.
To gain a tactical advantage on the battlefield and increase its use of developing technologies, the Defense Department has announced that it will employ commercial cloud services, which means computer power and storage in remote data centers controlled by private corporations.
While the Trump administration preferred a single provider, the Biden administration has stated that the project will most likely be split among several companies.
A move like this would align the military with private-sector corporations, which often split up their cloud computing work among numerous vendors to avoid being locked into one.