Protecting AI and Cloud Competition in Defense Act of 2025

Requires the Department of Defense to force open, competitive buys and stronger data protections when it purchases cloud services, data infrastructure, and AI foundation models. It prohibits using Government data to train commercial models without express authorization, sets penalties and narrow exemptions, and directs DoD to update its acquisition rules to reflect these limits.

Also requires public reporting to track competition and market concentration in AI procurement: the first report is due January 15, 2027, and then annually for four years. The measure focuses on procurement rules, definitions of covered providers and foundation models, enforcement mechanisms, and transparency about DoD market behavior.