Thousands of staff had already protested about working on a separate Department of Defense contract and against this backdrop has opted not to proceed further with the Joint Enterprise Defense Infrastructure cloud (Jedi).
Google opted out of the JEDI bidding on October 8, claiming the contract might fail to align with its AI principles - and (more importantly) because it didn't have some of the required government certifications.
In June, Google chief executive Sundar Pichai unveiled a set of principles on the company's use of artificial intelligence, saying that the company would not participate in "technologies that cause or are likely to cause overall harm" and would stay away from "weapons or other technologies whose principal goal or implementation is to cause or directly facilitate injury to people".
However, the firm does leave space for potential government collaboration stating that Google "will continue our work with governments and the military in many other areas".
"At most of the major defense contractors' front offices you'll see American flags. you don't really see that at Google", William Schneider Jr., a former Reagan administration acquisitions official who's a senior fellow at the conservative Hudson Institute, said in a briefing that he said was funded by Microsoft and Oracle.
Amazon Web Services is now the only company to have achieved an IL-6 security authorization, besting other competitors including Microsoft, Oracle and International Business Machines. Azure Government Secret is meant to provide multi-tenant cloud infrastructure and cloud capabilities to U.S. Federal Civilian, Department of Defense, Intelligence Community, and US Government partners working within Secret enclaves.
The bidding process for the JEDI contract has come under scrutiny because of its large size and the fact that the Pentagon wants to award it to a single bidder rather than share it among several providers.
Google has dropped out of the race for the Department of Defense's $10 billion, 10-year cloud contract, but Microsoft is still all-in.
The government has yet to make a decision about the complaint, but Google said that if the contract had been open to multiple vendors, it would have "submitted a compelling solution for portions of it".
The front-runner for the contract is widely believed to be Amazon, which already has a $US600 million contract with the Central Intelligence Agency.