OpenAI’s significant infrastructure expansion with a 4.5 GW power lease from Oracle highlights the soaring energy demands of AI development, amidst Microsoft’s major layoffs affecting 9,000 employees and strategic shifts, and Cloudflare’s new AI data scraping blocks to protect content rights. Meanwhile, the UK considers updating submarine cable laws to counter rising cyber and sabotage threats.
▶️ Internet Infrastructure
OpenAI Leases 4.5 GW Power from Oracle for AI Infrastructure Growth
OpenAI will lease about 4.5 GW of US data center power from Oracle for its Stargate project, emphasizing the substantial infrastructure needs of cutting-edge AI technology.
- OpenAI has agreed to rent approximately 4.5 gigawatts of data center power from Oracle in the US as part of its Stargate initiative.
- The deal highlights the significant energy and infrastructure requirements for advanced AI products.
- The capacity expansion underscores the growing demand for large-scale computational resources in AI development.
Microsoft Cuts 9,000 Jobs and Cancels Major Xbox Projects in Strategic Shift
Microsoft’s July 2, 2025 layoffs affected about 9,000 employees globally, leading to studio closures and game cancellations, including Everwild, Perfect Dark, and a new MMO, amid ongoing Xbox strategic realignment.
- Microsoft announced mass layoffs on July 2, impacting approximately 9,000 employees (4% of global staff), including multiple Xbox studios and projects.
- Several studios faced closures or significant layoffs: Raven Software, Turn 10 Studios (nearly 50% staff reduction), Rare (Everwild canceled), The Initiative (first game canceled), High Moon Studios, Sledgehammer Games, and Blizzard (support for Warcraft Rumble reduced).
- Multiple game cancellations occurred, including Rare’s Everwild, a new MMO codenamed Blackbird from ZeniMax Online Studios, and The Initiative’s Perfect Dark reboot; some projects were in development for over a decade.
Cloudflare Blocks A.I. Data Scrapers to Protect Content and Data Rights
Cloudflare introduced default blocking of A.I. data scrapers via a new permission setting, aiming to safeguard original content and address data rights concerns amid rising A.I. training data exploitation.
- Cloudflare launched a permission-based setting to automatically block A.I. data scrapers by default, requiring explicit access grants.
- The change aims to protect original online content amid increased use of web data by A.I. companies like OpenAI, Anthropic, and Google.
- Cloudflare’s network handles approximately 20% of internet traffic; the move responds to contentious issues over data rights and copyright infringement claims against A.I. training data providers.
US Sanctions Russian Host Provider Aeza Group for Ransomware Support
US sanctions Aeza Group, a Russian bulletproof hosting provider linked to ransomware gangs like BianLian, for facilitating cybercrime, with key leaders designated by OFAC.
- US Treasury sanctioned Russian bulletproof hosting provider Aeza Group and four associates for enabling ransomware and cybercriminal activities.
- Aeza Group supplied infrastructure to ransomware gangs BianLian, Meduza, Lumma, and targeted critical US infrastructure.
- Key individuals include CEO Arsenii Penzev, director Yurii Bozoyan, interim boss Igor Knyazev, and technical director Vladimir Gast; all Russian nationals, with sanctions imposed by OFAC.
AWS Launches C8gn EC2 Instances with 600Gbps Bandwidth and Arm Processors
AWS’s C8gn EC2 instances, launched in July 2025, feature dual 300Gbps NICs, 192 vCPUs, and 384GB DDR5 memory, optimized for high-bandwidth network applications.
- AWS introduced C8gn EC2 instances powered by Graviton 4 processors, offering up to 192 Arm vCPUs and 384GB DDR5 memory
- Headline feature includes dual 300Gbps NICs delivering 600Gbps network bandwidth and 60Gbps EBS bandwidth via twin Nitro 6 DPUs
- Designed for network-intensive workloads such as virtualized firewalls, load balancers, routers, and DDoS prevention, with software-capped 300Gbps NICs
Arista Acquires VeloCloud from Broadcom to Boost AI-Driven Cloud WAN Solutions
Arista acquired VeloCloud from Broadcom in 2025 to enhance AI-optimized cloud WAN solutions, addressing evolving WAN traffic patterns and enterprise app architectures.
- Broadcom sold VeloCloud, VMware’s SD-WAN business acquired in 2017, to Arista Networks in 2025
- VeloCloud’s hardware component aligns with Arista’s box-based business model, easing integration
- VMware shifted focus to private clouds, reducing its SD-WAN emphasis; Broadcom integrated VeloCloud into Secure Access Service Edge products
HPE Completes $14B Acquisition of Juniper Networks to Expand Networking Portfolio
HPE finalized its $14 billion acquisition of Juniper Networks, with plans to integrate and expand its networking portfolio, while retaining brands and starting an “integration strategy” without specific details.
- HPE completed its acquisition of Juniper Networks after 18 months, deal valued at $14 billion
- The transaction doubles HPE’s networking business size and aims to offer a comprehensive portfolio
- HPE agreed to divest its Instant On Wi-Fi business and license Juniper’s AI Ops for Mist to address DOJ antitrust requirements
Heathrow Power Outage Caused by Ignored Moisture Risk and System Failures
The Heathrow power outage resulted from moisture in a high-voltage bushing ignored since 2018, exposing systemic failures in infrastructure monitoring, design, and operational procedures, with datacenters maintaining resilience.
- The March Heathrow power outage was caused by moisture ingress into a high-voltage bushing at North Hyde Substation, leading to a short circuit and fire.
- Elevated moisture levels in the bushing oil were detected in 2018, but mitigation actions were not implemented, contributing to the fire.
- NESO’s report states Heathrow’s electrical system design made it vulnerable to loss of one of three supply points, with reconfiguration procedures not well-known, causing nearly a day of airport closure.
UK to Update Submarine Cable Laws Amid Rising Cyber and Sabotage Threats
UK plans to revise outdated submarine cable laws, addressing increased sabotage and cyber threats from Russia and China, with new legislation expected to enhance legal and military response capabilities.
- UK government considers updating the Submarine Telegraph Act of 1885 amid rising cyber and subsea cable sabotage threats
- Incidents include suspected Russian attack on Baltic Sea cables and damage to cables between Sweden, Latvia, Finland, and Estonia
- UK law currently imposes £1,000 fines; officials suggest legislation needs modernization to address modern risks, including state-sponsored cybercrime and gray zone threats
▶️ Open Source
Percona Launches Open Source On-Disk Encryption for PostgreSQL
Percona’s open source pg_tde extension introduces enterprise-grade on-disk encryption for PostgreSQL, with plans for upstream integration, supporting centralized key management and regulatory compliance.
- Percona has developed an open source Transparent Data Encryption (TDE) extension for PostgreSQL, available under the PostgreSQL License and managed by the PostgreSQL Global Development Group.
- The
pg_tdeextension is included in Percona Distribution for PostgreSQL and aims for integration into the main PostgreSQL distribution, with foundational changes underway. - TDE encrypts all database files on disk, supports centralized Key Management with providers like HashiCorp, Thales, Fortanix, and OpenBao, and helps meet regulations such as GDPR.
▶️ Management and Leadership
Microsoft to Lay Off 9,000 Employees in 2026 Restructuring Effort
Microsoft announced about 9,000 layoffs in its second fiscal day of 2026, aiming to streamline management layers and adapt to market dynamics, following multiple layoffs earlier in 2025.
- Microsoft will lay off approximately 9,000 employees, representing less than 4% of its global workforce, affecting various teams, roles, and regions.
- The layoffs follow previous reductions in 2025: less than 1% in January, over 6,000 in May, and at least 300 in June; total employment was 228,000 as of June 2024.
- The company aims to reduce management layers to enhance organizational agility, particularly in gaming and strategic growth areas.
Cisco Issues Urgent Patch for Critical Cisco Unified Communications Vulnerability
Cisco released a critical patch for ES builds of Unified Communications Manager and Session Management Edition due to hardcoded credentials enabling remote root access (CVE-2025-20309), with no workaround available.
- Cisco issued an urgent patch for Engineering-Special (ES) builds of Unified Communications Manager (Unified CM) and Session Management Edition due to hardcoded, unchangeable credentials.
- The vulnerability, CVE-2025-20309, allows unauthenticated remote attackers to gain full root control if they identify the development credentials.
- Affected packages include Cisco Unified CM and Unified CM SME Engineering Special releases 15.0.1.13010-1 through 15.0.1.13017-1; the fix is available here.
Microsoft Launches Subscription Editions of Exchange and Skype for Business
Microsoft launched Subscription Editions of Exchange and Skype for Business, discontinuing support for 2016 and 2019 versions by October 14, 2025, with minimal update changes and ongoing support for on-premises deployments.
- Microsoft has released Subscription Editions (SE) of Exchange Server and Skype for Business Server, replacing year-numbered versions.
- The last cumulative updates for Exchange Server 2019 (CU15) and Skype for Business Server 2019, as well as Exchange Server 2016 and Skype for Business Server 2016, are due to drop support on October 14, 2025.
- The update to SE involves only license agreement changes, a name change, build/version number updates, and cumulative update rollups since CU15.
Microsoft Restructures Licensing, Shifting Revenue from Resellers to Direct Sales
Microsoft’s restructured enterprise licensing incentives are reducing reseller revenues, with LSPs losing significant EA renewal commissions, shifting business toward direct sales and AI investments.
- Microsoft’s changes to licensing incentives for large service providers impact enterprise account renewals, reducing reseller profits and shifting business models.
- Bytes Technology Group (BTG) shares dropped over 25% after reporting profits dented by customer delays and lower renewal kickbacks, with gross profit expected to be flat at £2.1 billion ($2.88 billion) for FY2026 H1.
- Microsoft is reclaiming approximately one-third of Enterprise Agreement (EA) renewals from Large Service Providers (LSPs), with estimated $2.5 billion paid in 2023, decreasing to $583 million in 2025, and expected to cease in 2026; direct sales revenue in these accounts is projected to reach $2.5 billion in 2026.
Microsoft to Cut 9,000 Jobs Amid Restructuring in 2025
Microsoft is reportedly preparing to lay off around 9,000 staff (4%) in its second major workforce reduction of 2025, amid ongoing organizational restructuring and over 16,000 total job cuts since January.
- Microsoft plans to cut approximately 9,000 employees, representing about 4% of its workforce, across teams, geographies, and seniority levels.
- The layoffs are part of ongoing organizational restructuring, with no formal announcement yet made by Microsoft.
- The company has reduced over 16,000 roles since January 2025, including 7,000 in a May layoff round and 1% in January.
▶️ Technology
Ensō Beta Unveils New UI Themes Privacy Features and Text Engine
Ensō’s latest beta introduces a streamlined UI, five accessibility themes, Coffeeshop Mode, privacy enhancements, and a new text engine, with App Store deployment planned for broader access.
- Ensō’s new version (codename: Occult Vampire Keanu) is available for public testing via TestFlight, released on 27 June 2025
- Features include a simplified UI, accessible themes (5½ predefined themes), Coffeeshop Mode for privacy, privacy improvements, and a new text rendering engine
- App will be published on the App Store, with standalone versions on Gumroad remaining as backup; no analytics are used, and personalization and RTL support are planned for future updates
Self-Improving AI Factory Using Claude Agents for Scalable Workflow Automation
A July 2025 snapshot details building a self-improving AI factory using Claude agents, emphasizing input-focused debugging, iterative refinement, and scalable workflows for autonomous code generation and verification.
- Implements a self-improving AI factory using multiple Claude-based agents (o3, sonnet 3.7/4, Claude code) with git worktrees for parallel development
- Workflow involves planning, execution, verification, and feedback, emphasizing fixing inputs (plans/prompts) rather than outputs
- Focuses on iterative input refinement, with agents running in parallel and lessons fed back into plans to enhance code quality and workflow automation
Cl0p MOVEit Tool Faces Critical RCE Vulnerability
Cl0p’s Python-based exfiltration tool, linked to MOVEit breaches, is vulnerable to remote command execution due to improper input validation, risking exploitation by rivals or attackers.
- Cl0p’s data exfiltration tool, used in 2023-2024 MOVEit mass data raids, has a critical RCE vulnerability (CWE-20) with an 8.9 severity score
- The flaw stems from lack of input sanitization, allowing attacker-controlled strings to be concatenated into OS commands
- Discovered by Lorenzo N and published by CIRCL, the vulnerability involves an authenticated endpoint passing filenames directly into shell-escape sequences
Software Engineer Criticizes LLMs Over Code Quality and Trust Issues
Alberto Fortin’s experience with LLMs reveals persistent quality and trust issues, advocating for cautious, small-scale use and emphasizing developer control in AI-assisted coding.
- Alberto Fortin, a software engineer with 15 years of experience, shared his critical assessment of LLMs after encountering significant challenges rebuilding infrastructure with Go and ClickHouse
- He tested models like Claude Opus 4, analyzing recent improvements and their effectiveness in addressing core issues
- Fortin highlights issues with AI-generated code quality, debugging, and trust, emphasizing the need for developers to maintain control and skepticism