According to India‘s markets regulator, Infosys CEO Salil Parekh has settled charges related to insufficient internal controls to prevent insider trading during a 2020 contract. Parekh agreed to pay approximately $30,000 to settle the charge, which stemmed from a contract where Infosys provided a cloud-based record-keeping platform to US financial firm Vanguard.
The Securities and Exchange Board of India (SEBI) stated that Infosys failed to recognise certain unpublished price-sensitive information (UPSI) as such. Though SEBI did not specify the information, it held Parekh accountable for the lapse. In response, Infosys has implemented an internal policy to identify UPSI and now seeks approval from the board and audit committee for such information.
Additionally, Infosys has started breaking down the total contract value of deals into average revenue per annum for comparison with its annual revenue. The initiative aims to enhance transparency and prevent future lapses in internal controls.
Oracle has cautioned investors that a potential US ban on TikTok could negatively impact its financial results. A new law signed by President Biden in April could make it illegal for Oracle to provide internet hosting services to TikTok unless its China-based owners meet certain conditions. Oracle warned that losing TikTok as a client could harm its revenue and profits, as TikTok relies on Oracle’s cloud infrastructure for storing and processing US user data.
Analysts consider TikTok one of Oracle’s major clients, contributing significantly to its cloud business revenue. Estimates suggest Oracle earns between $480 million to $800 million annually from TikTok, while its cloud unit generated $6.9 billion in sales last year. The cloud business’s growth, driven by demand for AI work, has boosted Oracle’s shares by 34% this year.
Why does it matter?
The new law requires TikTok to find a US buyer within 270 days or face a ban, with a possibility of extension. TikTok, which disputes the security concerns, has sued to overturn the law. It highlights its collaboration with Oracle, termed ‘Project Texas,’ aimed at safeguarding US data from its Chinese parent company, ByteDance. Despite this, Oracle has remained discreet about its relationship with TikTok, not listing it among its key cloud customers and avoiding public discussion.
Amazon announced plans to invest €10 billion ($10.75 billion) in Germany, emphasising the country’s growing importance in cloud computing and retail. The majority of this investment, totalling €8.8 billion, will be allocated by 2026 to expand Amazon Web Services (AWS), particularly focusing on enhancing cloud infrastructure to support AI technologies across Europe.
German Chancellor Olaf Scholz hailed the investment, highlighting its potential to create over 4,000 jobs this year. That move comes amidst Germany’s economic challenges, including an energy crisis and bureaucratic hurdles that have hindered investment.
Amazon’s latest commitment brings its total planned investments in Germany to €17.8 billion, underscoring its long-term strategic focus on the country. Earlier reports indicated AWS’s consideration of multi-billion investments to expand data centres in Italy, further illustrating Amazon’s broader ambitions in Europe’s digital infrastructure sector.
The investment signals Amazon’s confidence in Germany’s business environment and its strategic position in Europe, aiming to bolster AWS’s AI and cloud services capabilities to meet increasing regional demand. That is expected to boost employment and enhance Amazon’s technological footprint in Europe’s largest economy.
Microsoft plans to invest 6.69 billion euros ($7.16 billion) in developing new data centres in Spain’s northeastern region of Aragon, enhancing the area’s reputation as a major European cloud computing hub. The regional government confirmed that Microsoft had applied for a construction permit for data centres outside Zaragoza, with the investment spread over ten years. The initiative follows Microsoft’s recent announcement of a 2.1 billion euro investment in data centres in Madrid.
Amazon Web Services (AWS) also has significant plans for Aragon, having announced a 15.7 billion euro investment over the next decade to build renewable energy-powered data centres in the region. Zaragoza, Spain’s fifth-largest city, is a logistics and transportation hub strategically positioned between Madrid and Barcelona along the key trade route connecting the Iberian Peninsula to France and the rest of Europe. The geographical advantage and Aragon’s substantial wind power capacity make it an attractive location for significant tech investments.
Oracle’s stock soared nearly 9% on Wednesday, propelled by surging demand for its cost-effective cloud infrastructure services, particularly from AI applications. The surge could boost the company’s market valuation by over $28 billion, adding to its current $340 billion valuation. With an 18% increase in shares since the beginning of the year, Oracle is capitalising on the momentum of its cloud infrastructure unit, which offers computing and storage services to businesses at competitive prices, positioning itself against major rivals like Google, Microsoft, and Amazon.
Oracle’s cloud infrastructure has garnered attention from AI startups, including Elon Musk’s xAI, thanks to its affordability compared to competitors. In a strategic move, Oracle recently announced partnerships with ChatGPT-maker OpenAI and Google Cloud to expand its cloud infrastructure offerings. That collaboration strengthens Oracle’s position as an AI platform and extends its database services distribution, as Evercore analyst Kirk Materne highlighted.
While Oracle’s forward earnings estimates stand at 19.59 times, lower than those of its major competitors, its fourth-quarter results missed expectations. Due to increasing competition from more cost-effective alternatives, the company faces challenges in its legacy database and enterprise resource planning (ERP) software business. Morningstar analyst Julie Sharma suggests that Oracle may experience customer churn as businesses undergo significant digital transformations, opting for cheaper database and ERP solutions over Oracle’s offerings.
At Apple’s annual developer conference on Monday, the tech giant is anticipated to unveil how it’s integrating AI across its software suite. The integration includes updates to its Siri voice assistant and a potential collaboration with OpenAI, the owner of ChatGPT. With its reputation on the line, Apple aims to reassure investors that it remains competitive in the AI landscape, especially against rivals like Microsoft.
Apple faces the challenge of demonstrating the value of AI to its vast user base, many of whom are not tech enthusiasts. Analysts suggest that Apple needs to showcase how AI can enhance user experiences, a shift from its previous emphasis on enterprise applications. Despite using AI behind the scenes for years, Apple has been reserved in highlighting its role in device functionality, unlike Microsoft’s more vocal approach with OpenAI.
The spotlight is on Siri’s makeover, which is expected to enable more seamless control over various apps. Apple aims to make Siri smarter by integrating generative AI, potentially through a partnership with OpenAI. The move is anticipated to improve user interactions with Siri across different apps, enhancing its usability and effectiveness. Also, Apple recently introduced an AI-focused chip in its latest iPad Pro models, signalling its commitment to AI development. Analysts predict that Apple will provide developers with insights into leveraging these capabilities to support AI computing. Additionally, reports suggest Apple may discuss its plans for using its chips in data centres, which could enhance cloud computing capabilities while maintaining privacy and security features.
The Apple Worldwide Developers Conference (WWDC 2024) will run until Friday, offering developers insights into app updates and new tools. Investors are hopeful that Apple’s AI advancements will drive sales of new iPhones and boost the company’s competitive edge amid fierce global competition.
China’s ByteDance, the parent company of TikTok, plans to invest around $2.13 billion to establish an AI hub in Malaysia. The plan includes an additional $320 million to expand data centre facilities in Johor state, according to Malaysia’s Trade Minister Tengku Zafrul Aziz.
The development follows significant investments by other tech giants in Malaysia. Google recently announced a $2 billion investment to create its first data centre and Google Cloud region in the country, while Microsoft is set to invest $2.2 billion to enhance cloud and AI services.
The investment is expected to boost Malaysia’s digital economy, aiming to increase its contribution to 22.6% of its GDP by 2025, underscoring the county’s growing importance as a digital economy hub in Southeast Asia.
According to European banking executives, the rise of AI is increasing banks’ reliance on major US tech firms, raising new risks for the financial industry. AI, already used in detecting fraud and money laundering, has gained significant attention following the launch of OpenAI’s ChatGPT in late 2022, with banks exploring more applications of generative AI.
At a fintech conference in Amsterdam, industry leaders expressed concerns about the heavy computational power needed for AI, which forces banks to depend on a few big tech providers. Bahadir Yilmaz, ING’s chief analytics officer, noted that this dependency on companies like Microsoft, Google, IBM, and Amazon poses one of the biggest risks, as it could lead to ‘vendor lock-in’ and limit banks’ flexibility. These facts also imply the strong impact AI could have on retail investor protection.
Britain has proposed regulations to manage financial firms’ reliance on external tech companies, reflecting concerns that issues with a single cloud provider could disrupt services across multiple financial institutions. Deutsche Bank’s technology strategy head, Joanne Hannaford, highlighted that accessing the necessary computational power for AI is feasible only through Big Tech.
The European Union’s securities watchdog recently emphasised that banks and investment firms must protect customers when using AI and maintain boardroom responsibility.
Alphabet’s Google announced the completion of its data centre and cloud facilities expansion in Singapore, marking a total investment of $5 billion in the nation’s technical infrastructure. This substantial investment underscores Google’s commitment to enhancing its services in Southeast Asia. The expanded data centres, which employ over 500 people, are crucial for powering essential services like Google Search and Maps.
In addition to its efforts in Singapore, Google revealed plans last week to invest $2 billion in Malaysia to establish its first data centre in the country. The expansion into Malaysia signifies Google’s broader strategy to bolster its presence and capabilities across Southeast Asia, aiming to support the growing demand for digital services and infrastructure.
Microsoft announced on Monday a significant investment of 33.7 billion Swedish crowns ($3.21 billion) to enhance its cloud and AI infrastructure in Sweden over the next two years. This investment marks the company’s largest commitment to Sweden to date and includes plans to train 250,000 individuals in AI skills, aiming to boost the country’s competitiveness in the tech sector. Microsoft Vice Chair and President Brad Smith emphasised that this initiative goes beyond technology, focusing on providing widespread access to essential tools and skills for Sweden’s people and economy.
As part of this investment, Microsoft plans to deploy 20,000 advanced graphics processing units (GPUs) across its data centre sites in Sandviken, Gavle, and Staffanstorp. These GPUs are designed to accelerate computer calculations, enhancing the efficiency and capability of AI applications. Smith was scheduled to meet with Swedish Prime Minister Ulf Kristersson in Stockholm to discuss the investment and its implications for the country’s tech landscape.
In addition to bolstering AI infrastructure in Sweden, Microsoft is committed to promoting AI adoption throughout the Nordic region, which includes Denmark, Finland, Iceland, and Norway. The strategic move underscores Microsoft’s dedication to fostering innovation and equipping the Nordic countries with the necessary resources to thrive in the evolving AI era.
