Hewlett Packard Enterprise wins $931 million cloud contract from US Defense Department

(Reuters) -Artificial intelligence server maker Hewlett Packard Enterprise said on Tuesday it has won a $931 million contract from a combat support agency of the U.S. Department of Defense for providing cloud services for its data centers.

U.S. President Donald Trump has ordered the department to rename itself as the Department of War, a change that will require action by Congress.

The contract to HPE, aimed at creating a cloud environment to improve outcomes for "warfighters", underscores federal confidence in the company's cloud capabilities as the government accelerates efforts to modernize infrastructure, investing billions in AI and signing contracts with leading industry players.

E-commerce giant Amazon.com said on Monday it would invest up to $50 billion to expand AI and supercomputing capabilities for Amazon Web Services U.S. government customers.

HPE's cloud will enable the Defense Information Systems Agency to accelerate communications and application deployment, as well as benefit from enhanced AI and data analytics, the company said.

(Reporting by Zaheer Kachwala in Bengaluru; Editing by Shilpi Majumdar)

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