Meta plugs in $10B cloud boost and paints a picture with Midjourney
Meta has signed a six-year cloud computing deal with Google worth more than $10 billion, securing servers, storage, and networking services to power its AI ambitions. The agreement marks Google’s second major cloud win after landing OpenAI.
The deal supports Meta’s plan to spend hundreds of billions building AI data centers. CEO Mark Zuckerberg raised the company’s annual capital expenditure forecast to $66-72 billion last month, while seeking outside partners to help fund infrastructure.
The company is simultaneously boosting its AI capabilities through strategic partnerships. Meta signed a deal with Midjourney to license the startup’s “aesthetic technology” for future visual products, linking research teams under Meta’s reorganized Superintelligence Labs division.
Google’s cloud unit delivered 32% revenue growth in the second quarter, surpassing expectations amid this flurry of enterprise AI deals.
Databricks adds Tecton to fast-track AI response times
Databricks will acquire machine learning startup Tecton in an all-stock deal. Tecton is known for providing software that helps companies analyze and deploy data at scale with low latency. The move addresses enterprise customers’ growing impatience with slow AI responses.
Financial terms weren’t disclosed. The acquisition comes as Databricks pursues a new funding round valuing the company above $100 billion.
CEO Ali Ghodsi said the acquisition will boost Databricks’ Agent Bricks platform. “Many of the use cases are directly user-facing and human-facing, and humans hate to wait,” he told Reuters, pointing to voice interaction as a priority.
The companies already work together. Tecton partners with both Databricks and rival Snowflake, sharing clients like crypto exchange Coinbase. This deal extends Databricks’ acquisition streak after MosaicML ($1.3 billion) and Neon ($1 billion).
OpenAI sets up shop in Delhi amid India AI surge
OpenAI will open its first India office in New Delhi later this year, doubling down on its second-largest market by users. The company has established a legal presence and started hiring locally.
India represents both promise and problems for ChatGPT. Weekly active users have quadrupled in the past year, with students the largest segment. OpenAI launched its cheapest monthly plan at $4.60 this week for India’s billion internet users.
Legal headaches mount. News outlets and publishers accuse OpenAI of training ChatGPT on their content without permission. The company denies wrongdoing while facing competition from Google’s Gemini and Perplexity, both offering free advanced features.
CEO Sam Altman said the Delhi office shows commitment to “build AI for India, and with India.” The local team will make advanced AI more accessible across the country.
DaVita reels from ransomware exposing millions of records
A ransomware attack on dialysis provider DaVita impacted 2.7 million people, according to U.S. health department data. The company first disclosed the April cyberattack without revealing the massive scope.
Hackers gained unauthorized access to DaVita’s labs database containing sensitive patient information. The company operates nearly 3,000 outpatient clinics providing kidney dialysis treatment, making patient data particularly valuable to cybercriminals.
DaVita maintained uninterrupted patient care throughout the attack but faced significant operational disruption. The company is offering complimentary credit monitoring to affected patients while working to restore compromised systems.
The breach cost DaVita $13.5 million in second-quarter remediation expenses. Patient care costs increased $1 million while general administrative expenses jumped $12.5 million for third-party cybersecurity assistance and system restoration.
Trump eyes CHIPS funds for minerals pivot
The Trump administration plans to reallocate at least $2 billion from the CHIPS Act to fund critical minerals projects, boosting Commerce Secretary Howard Lutnick’s influence over the strategic sector. The move redirects money allocated for semiconductor research.
The plan aims to reduce U.S. dependence on China for critical minerals used in electronics and defense while centralizing the administration’s minerals strategy. This follows confusion over the Pentagon’s recent multibillion-dollar investment in MP Materials.
Trump has called the CHIPS Act “a horrible, horrible thing” since taking office. The $52.7 billion law, signed by Biden in 2022, seeks to boost American semiconductor production and lure manufacturing from Asia.
Lutnick will coordinate funding decisions across agencies, taking the lead from the Pentagon. The administration wants to “get the $2 billion out the door” quickly through grants or equity stakes.
