Microsoft used China-based engineering teams to maintain cloud computing systems for multiple federal departments including Justice, Treasury, and Commerce, extending the practice beyond the Defense Department that the company announced last week it would discontinue. The work occurred within Microsoft's Government Community Cloud, which handles sensitive but unclassified federal information and has been used by the Justice Department's Antitrust Division for criminal and civil investigations, as well as parts of the Environmental Protection Agency and Department of Education.

Microsoft employed "digital escorts" -- U.S.-based personnel who supervised the foreign engineers -- similar to the arrangement it used for Pentagon systems. Following ProPublica's reporting, Microsoft issued a statement indicating it would take "similar steps for all our government customers who use Government Community Cloud to further ensure the security of their data." Competing cloud providers Amazon Web Services, Google, and Oracle told ProPublica they do not use China-based support for federal contracts.

The $500 billion Stargate AI project announced by SoftBank and OpenAI at the White House six months ago has failed to complete a single data center deal and sharply scaled back its near-term plans. The venture, which originally pledged to invest $100 billion "immediately," now aims to build one small data center by year-end, likely in Ohio, according to WSJ. SoftBank and OpenAI have disagreed over crucial partnership terms, including site locations.

OpenAI has proceeded independently, signing a deal with Oracle worth more than $30 billion annually starting within three years. That agreement totals 4.5 gigawatts of capacity and would consume power equivalent to more than two Hoover Dams. Combined with a smaller CoreWeave deal, OpenAI has secured nearly as much data center capacity as Stargate promised for this year. SoftBank invested $30 billion in OpenAI earlier this year as part of the infrastructure partnership plans.

OpenAI has added Google Cloud as a provider for ChatGPT and its API, expanding beyond Microsoft to address growing demand for computing power. CNBC reports: OpenAI has added Google to a list of suppliers, specifying that ChatGPT and its application programming interface will use the Google Cloud Platform, as well as Microsoft, CoreWeave and Oracle. The announcement amounts to a win for Google, whose cloud unit is younger and smaller than Amazon's and Microsoft's. Google also has cloud business with Anthropic, which was established by former OpenAI executives. The Google infrastructure will run in the U.S., Japan, the Netherlands, Norway and the United Kingdom.

A survey of 500 IT asset managers in organizations that use Oracle Java has found that 73% have been audited in the last three years. From a report: At the same time, nearly eight out of 10 Oracle Java users said they had migrated, or planned to shift, to open source Java to try to avoid the risk and high costs of the dominant vendor's development and runtime environments.

Oracle introduced a paid subscription for Java in September 2018, and in January 2023, it decided to switch its pricing model to per employee rather than per user, creating a steep price hike for many users. In July 2023, Gartner recorded users experiencing price increases of between two and five times when they switched to the new licensing model.

Two years later, the survey conducted by market research firm Dimensional Research showed only 14% of Oracle Java users intended to stick with the vendor's subscription model.

Oracle has signed a landmark $30 billion annual cloud deal -- nearly triple the size of its current cloud infrastructure business -- with revenue expected to begin in fiscal year 2028. The deal was disclosed in a regulatory filing Monday without the customer being named. Bloomberg reports: "Oracle is off to a strong start" in its fiscal year 2026, Chief Executive Officer Safra Catz said in the filing. The company has signed "multiple large cloud services agreements," she said, adding that revenue from Oracle's namesake database that runs on other clouds continues to grow more than 100%.

The $30-billion deal ranks among the largest cloud contracts on record. That revenue alone would represent nearly three times the size of Oracle's current infrastructure business, which totaled $10.3 billion over the past four quarters. A major cloud contract awarded in 2022 from the US Defense Department, that runs through 2028 and could be worth as much as $9 billion, is split among four companies, including Oracle. That award was a shift after an earlier contract worth $10 billion was awarded to Microsoft and was contested in court.

An anonymous reader quotes a report from Reuters: SoftBank Group founder Masayoshi Son is envisaging setting up a $1 trillion industrial complex in Arizona that will build robots and artificial intelligence, Bloomberg News reported on Friday, citing people familiar with the matter. Son is seeking to team up with Taiwan Semiconductor Manufacturing Co for the project, which is aimed at bringing back high-end tech manufacturing to the U.S. and to create a version of China's vast manufacturing hub of Shenzhen, the report said.

SoftBank officials have spoken with U.S. federal and state government officials to discuss possible tax breaks for companies building factories or otherwise investing in the industrial park, including talks with U.S. Secretary of Commerce Howard Lutnick, the report said. SoftBank is keen to have TSMC involved in the project, codenamed Project Crystal Land, but it is not clear in what capacity, the report said. It is also not clear the Taiwanese company would be interested, it said. TSMC is already building chipmaking factories in the U.S. with a planned investment of $165 billion. Son is also sounding out interest among tech companies including Samsung Electronics, the report said.

The plans are preliminary and feasibility depends on support from the Trump administration and state officials, it said. A commitment of $1 trillion would be double that of the $500 billion "Stargate" project which seeks to build out data centre capacity across the U.S., with funding from SoftBank, OpenAI and Oracle.

President Trump will extend the deadline for ByteDance to divest TikTok's U.S. operations by another 90 days, marking the third extension since taking office. The extension aims to prevent a TikTok ban while negotiations with potential buyers like Oracle and Project Liberty continue. CNBC reports: "President Trump will sign an additional Executive Order this week to keep TikTok up and running," White House Press Secretary Karoline Leavitt said in a statement. "As he has said many times, President Trump does not want TikTok to go dark. This extension will last 90 days, which the Administration will spend working to ensure this deal is closed so that the American people can continue to use TikTok with the assurance that their data is safe and secure."

ByteDance was nearing the deadline of June 19, to sell TikTok's U.S. operations in order to satisfy a national security law that the Supreme Court upheld just a few days before Trump's second presidential inauguration. Under the law, app store operators like Apple and Google and internet service providers would be penalized for supporting TikTok. ByteDance originally faced a Jan. 19 deadline to comply with the national security law, but Trump signed an executive order when he first took office that pushed the deadline to April 5. Trump extended the deadline for the second time a day before that April mark. Trump told NBC News in May that he would extend the TikTok deadline again if no deal was reached, and he reiterated his plans on Thursday.

An anonymous reader quotes a report from The Register: UK universities and colleges have signed a framework worth up to 9.86 million pounds ($13.33 million) with Oracle to use its controversial Java SE Universal Subscription model, in exchange for a "waiver of historic fees due for any institutions who have used Oracle Java since 2023." Jisc, a membership organization that runs procurement for higher and further education establishments in the UK, said it had signed an agreement to purchase the new subscription licenses after consultation with members. In a procurement notice, it said institutions that use Oracle Java SE are required to purchase subscriptions. "The agreement includes the waiver of historic fees due for any institutions who have used Oracle Java since 2023," the notice said.

The Java SE Universal Subscription was introduced in January 2023 to an outcry from licensing experts and analysts. It moved licensing of Java from a per-user basis to a per-employee basis. At the time, Oracle said it was "a simple, low-cost monthly subscription that includes Java SE Licensing and Support for use on Desktops, Servers or Cloud deployments." However, licensing advisors said early calculations to help some clients showed that the revamp might increase costs by up to ten times. Later, analysis from Gartner found the per-employee subscription model to be two to five times more expensive than the legacy model.

"For large organizations, we expect the increase to be two to five times, depending on the number of employees an organization has," Nitish Tyagi, principal Gartner analyst, said in July 2024. "Please remember, Oracle defines employees as part-time, full-time, temporary, agents, contractors, as in whosoever supports internal business operations has to be licensed as per the new Java Universal SE Subscription model." Since the introduction of the new Oracle Java licensing model, user organizations have been strongly advised to move off Oracle Java and find open source alternatives for their software development and runtime environments. A survey of Oracle users found that only one in ten was likely to continue to stay with Oracle Java, in part as a result of the licensing changes.

An anonymous reader shares a report: Negotiations are under way between the UAE and OpenAI that may make the company's ChatGPT Plus artificial intelligence chatbot available to all residents free of charge, though a final deal has not been reached.

An agreement involving ChatGPT Plus would be part of the recently announced Stargate UAE infrastructure plan to create an AI hub in Abu Dhabi, according to a source familiar with the country's AI strategy. Abu Dhabi's AI company G42 has partnered with OpenAI, Oracle and Nvidia to set up Stargate UAE, a 1-gigawatt computing cluster that will operate in the newly established 5GW UAE -- US AI Campus.

Richard Speed writes via The Register: It was 30 years ago when the first public release of the Java programming language introduced the world to Write Once, Run Anywhere -- and showed devs something cuddlier than C and C++. Originally called "Oak," Java was designed in the early 1990s by James Gosling at Sun Microsystems. Initially aimed at digital devices, its focus soon shifted to another platform that was pretty new at the time -- the World Wide Web.

The language, which has some similarities to C and C++, usually compiles to a bytecode that can, in theory, run on any Java Virtual Machine (JVM). The intention was to allow programmers to Write Once Run Anywhere (WORA) although subtle differences in JVM implementations meant that dream didn't always play out in reality. This reporter once worked with a witty colleague who described the system as Write Once Test Everywhere, as yet another unexpected wrinkle in a JVM caused their application to behave unpredictably. However, the language soon became wildly popular, rapidly becoming the backbone of many enterprises. [...]

However, the platform's ubiquity has meant that alternatives exist to Oracle Java, and the language's popularity is undiminished by so-called "predatory licensing tactics." Over 30 years, Java has moved from an upstart new language to something enterprises have come to depend on. Yes, it may not have the shiny baubles demanded by the AI applications of today, but it continues to be the foundation for much of today's modern software development. A thriving ecosystem and a vast community of enthusiasts mean that Java remains more than relevant as it heads into its fourth decade.

OpenAI is currently in "a tough negotiation" with Microsoft, the Financial Times reports, citing "one person close to OpenAI."

On the road to building artificial general intelligence, OpenAI hopes to unlock new funding (and launch a future IPO), according to the article, which says both sides are at work "rewriting the terms of their multibillion-dollar partnership in a high-stakes negotiation...."

Microsoft, meanwhile, wants to protect its access to OpenAI's cutting-edge AI models... [Microsoft] is a key holdout to the $260bn start-up's plans to undergo a corporate restructuring that moves the group further away from its roots as a non-profit with a mission to develop AI to "benefit humanity". A critical issue in the deliberations is how much equity in the restructured group Microsoft will receive in exchange for the more than $13bn it has invested in OpenAI to date.

According to multiple people with knowledge of the negotiations, the pair are also revising the terms of a wider contract, first drafted when Microsoft first invested $1bn into OpenAI in 2019. The contract currently runs to 2030 and covers what access Microsoft has to OpenAI's intellectual property such as models and products, as well as a revenue share from product sales. Three people with direct knowledge of the talks said Microsoft is offering to give up some of its equity stake in OpenAI's new for-profit business in exchange for accessing new technology developed beyond the 2030 cut off...

Industry insiders said a failure of OpenAI's new plan to make its business arm a public benefits corporation could prove a critical blow. That would hit OpenAI's ability to raise more cash, achieve a future float, and obtain the financial resources to take on Big Tech rivals such as Google. That has left OpenAI's future at the mercy of investors, such as Microsoft, who want to ensure they gain the benefit of its enormous growth, said Dorothy Lund, professor of law at Columbia Law School.
Lund says OpenAI's need for investors' money means they "need to keep them happy." But there also appears to be tension from how OpenAI competes with Microsoft (like targeting its potential enterprise customers with AI products). And the article notes that OpenAI also turned to Oracle (and SoftBank) for its massive AI infrastructure project Stargate. One senior Microsoft employee complained that OpenAI "says to Microsoft, 'give us money and compute and stay out of the way: be happy to be on the ride with us'. So naturally this leads to tensions. To be honest, that is a bad partner attitude, it shows arrogance."

The article's conclusion? Negotiating new deal is "critical to OpenAI's restructuring efforts and could dictate the future of a company..."

The Open Document Format reached its 20th anniversary on May 1, marking two decades since OASIS approved the XML-based standard originally developed by Sun Microsystems from StarOffice code. Even as the format has seen adoption by several governments including the UK, India, and Brazil, plus organizations like NATO, Microsoft Office's proprietary formats remain the de facto standard.

Microsoft countered ODF by developing Office Open XML, eventually getting it standardized through Ecma International. "ODF is much more than a technical specification: it is a symbol of freedom of choice, support for interoperability and protection of users from the commercial strategies of Big Tech," said Eliane Domingos, Chair of the Document Foundation, which oversees LibreOffice -- a fork created after Oracle acquired Sun.

Redis, the popular in-memory data store, has returned to open source licensing with Redis 8 now available under the AGPL v3 license. The move reverses last year's controversial shift to proprietary licensing schemes (RSALv2 and SSPLv1) that aimed to force major cloud providers to pay for offering Redis as a managed service.

The decision follows significant market pressure, including AWS, Google, and Oracle backing the Valkey fork, which gained momentum in the open source community.

Redis believes the AGPL license provides sufficient protection from cloud providers while satisfying open source requirements. Redis 8 will incorporate vector sets and integrate previously separate Redis Stack features including JSON, Time Series, and probabilistic data support.

Oracle engineers mistakenly triggered a five-day software outage at a number of Community Health Systems hospitals, causing the facilities to temporarily return to paper-based patient records. From a report: CHS told CNBC that the outage involving Oracle Health, the company's electronic health record (EHR) system, affected "several" hospitals, leading them to activate "downtime procedures." Trade publication Becker's Hospital Review reported that 45 hospitals were hit.

The outage began on April 23, after engineers conducting maintenance work mistakenly deleted critical storage connected to a key database, a CHS spokesperson said in a statement. The outage was resolved on Monday, and was not related to a cyberattack or other security incident. CHS is based in Tennessee and includes 72 hospitals in 14 states, according to the medical system's website.

In NoSQL database news, Arch Linux "is the latest Linux distribution replacing its Redis packages with the Valkey fork," reports Phoronix.

Valkey is backed by the Linux Foundation, Google, Amazon Web Services, and Oracle, which the article points out is due to Redis's decision last year to shift the upstream Redis license from a BSD 3-clause to RSALv2 and SSPLv1. Valkey is replacing Redis in the Arch Linux extra repository and after a two week period the Redis package will be moved out to AUR and receive no further updates. Users are encouraged to migrate to Valkey as soon as possible.

Microsoft's AI chief Mustafa Suleyman says the company has deliberately chosen to build AI models "three or six months behind" cutting-edge developments, citing cost savings and more focused implementation. "It's cheaper to give a specific answer once you've waited for the first three or six months for the frontier to go first. We call that off-frontier," Suleyman told CNBC.

"That's actually our strategy, is to really play a very tight second, given the capital-intensiveness of these models." Microsoft owns substantial Nvidia GPU capacity but sees no need to develop "the absolute frontier, the best model in the world first," as it would be "very, very expensive" and create unnecessary duplication, Suleyman said.

Despite its $13.75 billion investment in OpenAI, Microsoft added the startup to its list of competitors in July 2024. OpenAI subsequently announced a partnership with Oracle on its $500 billion Stargate project, departing from exclusive reliance on Microsoft's Azure cloud. "Look, it's absolutely mission-critical that long-term, we are able to do AI self-sufficiently at Microsoft," Suleyman said, while stressing the partnership with OpenAI would continue "until 2030 at least."

An anonymous reader shares a report: Oracle has told customers that a hacker broke into a computer system and stole old client log-in credentials, according to two people familiar with the matter. It's the second cybersecurity breach that the software company has acknowledged to clients in the last month.

Oracle staff informed some clients this week that the attacker gained access to usernames, passkeys and encrypted passwords, according to the people, who spoke on condition that they not be identified because they're not authorized to discuss the matter. Oracle also told them that the FBI and cybersecurity firm CrowdStrike are investigating the incident, according to the people, who added that the attacker sought an extortion payment from the company. Oracle told customers that the intrusion is separate from another hack that the company flagged to some health-care customers last month, the people said.

A breach of legacy Cerner servers at Oracle Health exposed patient data from multiple U.S. hospitals and healthcare organizations, with threat actors using compromised customer credentials to steal the data before it had been migrated to Oracle Cloud. Despite confirming the breach privately, Oracle Health has yet to publicly acknowledge the incident. BleepingComputer reports: Oracle Health, formerly known as Cerner, is a healthcare software-as-a-service (SaaS) company offering Electronic Health Records (EHR) and business operations systems to hospitals and healthcare organizations. After being acquired by Oracle in 2022, Cerner was merged into Oracle Health, with its systems migrated to Oracle Cloud. In a notice sent to impacted customers and seen by BleepingComputer, Oracle Health said it became aware of a breach of legacy Cerner data migration servers on February 20, 2025.

"We are writing to inform you that, on or around February 20, 2025, we became aware of a cybersecurity event involving unauthorized access to some amount of your Cerner data that was on an old legacy server not yet migrated to the Oracle Cloud," reads a notification sent to impacted Oracle Health customers. Oracle says that the threat actor used compromised customer credentials to breach the servers sometime after January 22, 2025, and copied data to a remote server. This stolen data "may" have included patient information from electronic health records. However, multiple sources told BleepingComputer that it was confirmed that patient data was stolen during the attack.

Oracle Health is also telling hospitals that they will not notify patients directly and that it is their responsibility to determine if the stolen data violates HIPAA laws and whether they are required to send notifications. However, the company says they will help identify impacted individuals and provide templates to help with notifications.

SoftBank Group plans to create industrial parks for AI across the US and is considering an investment of more than $1 trillion, Nikkei reported. From a report: Founder and Chief Executive Officer Masayoshi Son is expected to visit the US to discuss his ideas for such industrial parks, the newspaper said. The factories would likely use AI-equipped robots that would operate autonomously because of labor shortages in the country, according to the report.

Son teamed up with OpenAI and Oracle in January to unveil a $100 billion joint venture to fund AI infrastructure in the US, one of the first such pledges after Donald Trump became president. They said at the time they would deploy $100 billion immediately with the goal of increasing that to at least $500 billion for data centers and physical campuses.

An anonymous reader quotes a report from BleepingComputer: Despite Oracle denying a breach of its Oracle Cloud federated SSO login servers and the theft of account data for 6 million people, BleepingComputer has confirmed with multiple companies that associated data samples shared by the threat actor are valid. Last week, a person named 'rose87168' claimed to have breached Oracle Cloud servers and began selling the alleged authentication data and encrypted passwords of 6 million users. The threat actor also said that stolen SSO and LDAP passwords could be decrypted using the info in the stolen files and offered to share some of the data with anyone who could help recover them.

The threat actor released multiple text files consisting of a database, LDAP data, and a list of 140,621 domains for companies and government agencies that were allegedly impacted by the breach. It should be noted that some of the company domains look like tests, and there are multiple domains per company. In addition to the data, rose87168 shared an Archive.org URL with BleepingComputer for a text file hosted on the "login.us2.oraclecloud.com" server that contained their email address. This file indicates that the threat actor could create files on Oracle's server, indicating an actual breach. However, Oracle has denied that it suffered a breach of Oracle Cloud and has refused to respond to any further questions about the incident.

"There has been no breach of Oracle Cloud. The published credentials are not for the Oracle Cloud. No Oracle Cloud customers experienced a breach or lost any data," the company told BleepingComputer last Friday. This denial, however, contradicts findings from BleepingComputer, which received additional samples of the leaked data from the threat actor and contacted the associated companies. Representatives from these companies, all who agreed to confirm the data under the promise of anonymity, confirmed the authenticity of the information. The companies stated that the associated LDAP display names, email addresses, given names, and other identifying information were all correct and belonged to them. The threat actor also shared emails with BleepingComputer, claiming to be part of an exchange between them and Oracle.