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Ecolab Buys CoolIT for $4.75B to Target AI Cooling Demand

Ecolab has agreed to acquire liquid cooling specialist CoolIT Systems from KKR for approximately $4.75 billion in cash, aiming to expand its presence in the fast-growing AI data center market.

The deal comes as technology companies increase investment in artificial intelligence infrastructure, driving demand for advanced cooling solutions. Traditional air cooling is being replaced by liquid-based systems that can handle higher chip densities and energy loads.

CoolIT provides liquid cooling technology to major industry players, including chipmakers such as Nvidia and AMD. Its systems are widely used by hyperscale and colocation data center operators.

Ecolab expects the acquisition to strengthen its capabilities by combining CoolIT’s hardware and thermal engineering expertise with its own strengths in water management, chemistry and digital monitoring. This integration is expected to position the company as a more comprehensive provider of cooling and fluid management solutions.

CoolIT is projected to generate around $550 million in revenue over the next year. The transaction is expected to close in the third quarter of 2026 and contribute positively to Ecolab’s earnings per share by 2028.

Microsoft Weighs Legal Move Over OpenAI-Amazon Deal

Microsoft is considering legal action against OpenAI and Amazon over a reported $50 billion cloud agreement that could challenge its existing partnership with the AI company.

The dispute centers on OpenAI’s deal to use Amazon Web Services as the exclusive third-party cloud provider for its Frontier platform, which is designed for building and deploying AI agents.

Microsoft argues that such a move may conflict with its agreement requiring OpenAI’s models to be accessed through its Azure cloud platform. The company has signaled confidence that OpenAI is aware of its contractual obligations.

While discussions are ongoing, Microsoft has indicated it could pursue legal action if the agreement is breached. The situation highlights growing tensions as major tech firms compete for dominance in the rapidly expanding AI cloud market.

Grok Faces Lawsuit Over Images

Elon Musk’s artificial intelligence company xAI is facing a lawsuit in the United States alleging its Grok image generator enabled the creation of explicit content using real photos of individuals.

The complaint was filed in federal court by three plaintiffs, including two minors, who claim the system allowed altered images based on their likeness to be produced and circulated online.

The case seeks class-action status for individuals in the United States who may have been identifiable in AI-generated explicit imagery.

According to the filing, the plaintiffs argue the technology lacked sufficient safeguards to prevent misuse involving real people.

The lawsuit is requesting damages and court orders that would require the company to halt the alleged practices.

The case adds to a growing global debate over safeguards and accountability for generative artificial intelligence tools.