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ENTERPRISE
$30 billion a year Oracle deal? It's with OpenAI
Oracle and OpenAI have signed a massive cloud contract worth $30 billion per year, marking one of the largest deals in cloud computing history.
The agreement centers around several data center projects, including the Stargate initiatives in Texas and the UAE. OpenAI plans to lease about 4.5 GW of capacity from Oracle, with potential growth in various US states like Michigan, Wisconsin, New Mexico, and Wyoming.
The financial impact won't show up in Oracle's books until 2028. However, Oracle is already seeing incredible growth in its cloud business:
Their project pipeline is set to grow by more than 100% in 2026
Cloud infrastructure revenue reached $10.2 billion in 2025
They expect a 70% increase in fiscal 2026
Oracle plans to spend $25 billion next year on infrastructure
Oracle's CEO Safra Catz noted this level of demand is unlike anything in the company's history. They're working at full speed to build more data centers, with customers willing to take capacity wherever it becomes available.
DATA CENTER
Server sales surged in Q1, driven by GPU demand
Server sales hit a remarkable high point in the first three months of 2025, mainly because of the strong demand for GPUs.
The market grew by 134% compared to last year, reaching $95.2 billion in sales. This marks the biggest increase in 25 years according to IDC research. Looking at the bigger picture:
The market is expected to grow to $360 billion by the end of 2025
GPU-powered servers will make up about half of all sales
Major tech companies are spending big on data centers
AWS spent $24 billion
Microsoft invested $21 billion
Google Cloud put in $17 billion
Oracle doubled its spending to $21.2 billion
Companies like Dell and HPE also saw strong growth in their server business. Dell's server sales went up by 16% to $6.3 billion, while HPE's increased by 6% to $4.1 billion.
JOB MARKET
Microsoft Plans Major Layoffs: Thousands Affected
Microsoft has announced it will reduce its workforce by about 4 percent this summer, which could affect up to 9,000 employees.
The cuts have already started hitting various departments. Workers from Xbox gaming, government relations, and customer success teams have been affected. Some of these employees had been with Microsoft for over 13 years. Looking at recent cuts from May and June:
Software engineers made up 40% of the reductions
Product managers were 20%
Technical program managers were 11%
The changes touched many key areas of Microsoft:
Azure cloud services
Microsoft 365 products
Windows operating system
Copilot AI features
Microsoft says these changes are needed to keep the company strong in today's market. The reductions started as Microsoft began its new financial year on Tuesday.
AWS
AWS Enforces MFA Authentication
AWS has made a big change to make all accounts safer. They now require multi-factor authentication (MFA) for root users on every type of account.
The change comes after AWS added similar rules in steps:
May 2024: Required MFA for management accounts
June 2024: Added it for standalone accounts
November 2024: Made it possible to manage root access from one place
June 2025: Now requires it for all account types
MFA is free and stops almost all password-related attacks. Users can choose from different MFA options, including security keys. You can add up to 8 MFA devices for each user.
For companies using AWS Organizations, AWS suggests managing all accounts from one main account and removing root access from other accounts for better security.
📺 PODCAST
AI for FinOps vs FinOps for AI with Ido Kotler
We talk with Ido Kotler (CPO of Pelanor) about how artificial intelligence is radically transforming financial operations in the Cloud. From smart alerts to autonomous agents, discover why the future of FinOps depends on AI more than you might think.
ACQUISITIONS
HPE closes on $14 billion Juniper acquisition
HPE has completed its $14 billion purchase of Juniper Networks, making it official just after reaching an agreement with the U.S. Department of Justice.
The merger combines two major networking companies. HPE will now have two main networking brands: HPE Aruba Networking and HPE Juniper Networking. The former Juniper Networks CEO, Rami Rahim, will lead the combined networking business.
The deal faced initial resistance from the Department of Justice due to competition concerns. To get approval, HPE agreed to several conditions:
They must sell their Instant On campus and branch WLAN business
They need to share certain Juniper software with competitors
They have to auction a license for AI Ops for Mist's source code
HPE expects to save $450 million yearly within three years after the merger. The company aims to offer better AI and cloud services to their customers.
AI
Enterprises can’t secure AI
Companies are moving fast with AI but falling behind on keeping it safe, according to a new Accenture study of over 2,000 tech leaders.
The numbers tell a concerning story:
Almost 80% of companies don't have basic protection for their AI systems and data
Companies spend much more on AI than security - for every $1 on security, they spend $1.60 on AI
By next year, they plan to spend $2.60 on AI for every $1 on security
Speed appears to be the main issue. Companies want quick results from AI, often leaving security as an afterthought. This creates problems later when they have to add security measures after the fact, which costs more time and money.
The talent shortage makes things worse. More than 80% of leaders say they can't find enough cybersecurity experts to protect their AI systems properly.
This rush to use AI without proper security could backfire. As one expert points out, when something goes wrong with automated systems, it can create bigger problems more quickly than manual processes.
Some businesses are taking steps to fix this. About 40% of companies have started reviewing their security measures to better protect against AI-related threats.
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