This bill, titled the "Protecting AI and Cloud Competition in Defense Act of 2025," aims to enhance competition, security, and government control in the Department of Defense's (DoD) procurement of cloud computing, data infrastructure, and artificial intelligence (AI) foundation models. It requires the Secretary of Defense to implement a competitive award process for all such solutions, ensuring the government maintains exclusive rights to access and use of all Government data . The legislation specifies that the competitive process must prioritize the government's intellectual property and data rights, security, interoperability, and auditability requirements. It also mandates the inclusion of modular open systems approaches , mitigation of barriers for small businesses and nontraditional contractors, and a preference for multi-cloud technology unless infeasible or a national security risk. Furthermore, the bill directs the Chief Digital and Artificial Intelligence Office to update acquisition regulations to prevent unauthorized disclosure or use of government-furnished data, particularly for training commercial AI products, and establishes penalties for violations. Finally, the bill requires the Chairman of the Joint Chiefs of Staff, in coordination with the Under Secretary of Defense for Acquisition and Sustainment, to submit annual reports to congressional defense committees. These reports will assess competition, innovation, barriers to entry, and market concentrations within the AI space, including a list of any granted exemptions, and will be made publicly available.