Protecting AI and Cloud Competition in Defense Act of 2025

This bill requires the Department of Defense to promote competition when purchasing artificial intelligence, cloud computing, and data infrastructure services by mandating competitive award processes and prioritizing multi-cloud technology. It defines covered providers as companies with at least $50 million in DoD contracts over five years and restricts how these vendors can use government-provided data, prohibiting unauthorized use for training commercial products. The legislation also establishes annual reporting requirements to Congress on market competition and innovation in the AI sector, including details on any exemptions granted for national security reasons.