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Google to Invest $9 Billion in AI and Cloud Infrastructure in Oklahoma

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Alphabet’s Google announced Wednesday that it will spend an additional $9 billion in Oklahoma over the next two years to expand its cloud and artificial intelligence (AI) infrastructure. The plan includes building a new data center campus in Stillwater and expanding the existing facility in Pryor, alongside education and workforce programs.

The investment comes amid intensifying competition among Big Tech companies, which are spending heavily on new data centers and skills development to meet surging AI demand. Part of the $9 billion is included in Google’s 2025 capital expenditure plan, with the remainder earmarked for future projects.

Last month, Alphabet raised its annual capital spending target to $85 billion from $75 billion and indicated more increases could follow next year. The company and its peers have justified large AI investments as necessary for growth and product improvement, particularly amid competition from Chinese tech firms and investor concerns over slower returns.

In addition, Google committed $1 billion last week to AI education and training for U.S. universities and nonprofit organizations. Over 100 universities have joined the initiative, including major public institutions such as Texas A&M and the University of North Carolina. Competitors like OpenAI, Anthropic, and Amazon have launched similar AI-focused education programs.

U.S. policy also supports onshoring of AI infrastructure, prompting investments by companies such as Micron, Nvidia, and CoreWeave. Apple similarly announced plans last week to invest $600 billion in the U.S. over the next four years.

Apple Appeals €500 Million EU Fine Over App Store Restrictions

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Apple has officially filed a lawsuit challenging a €500 million ($587 million) antitrust fine imposed by the European Commission, contesting claims it violated the Digital Markets Act (DMA). The tech giant submitted the appeal on Monday, the final day to do so, at the EU’s General Court, the bloc’s second-highest legal authority.

The Commission ruled in April 2025 that Apple had unlawfully restricted app developers from directing users to cheaper payment options outside the App Store, a practice viewed as anti-competitive under the DMA.

In a public statement, Apple argued that the decision “goes far beyond what the law requires,” adding that the imposed fine was “unprecedented” and that the Commission is now effectively mandating how we run our store. Apple said it changed its policies to avoid daily fines of up to €50 million, or 5% of its average global daily revenue.

Despite modifying its App Store rules last month to comply with EU regulations, Apple insists the changes were made under protest, calling the Commission’s stance “confusing for developers and bad for users.” The company maintains that its original policies were fair and necessary for maintaining quality and user safety within the App Store ecosystem.

The European Commission has begun gathering feedback from developers to assess whether Apple’s revised App Store practices meet the obligations of the DMA. A decision on whether further changes will be required is still pending.

The case represents a significant moment in the EU’s broader campaign to rein in the influence of Big Tech, using the DMA to challenge gatekeeper platforms like Apple, Meta, Google, and Amazon. It also marks one of the first major legal battles under the DMA framework, setting a precedent for how tech firms may operate across the EU going forward.

Microsoft to Cut Around 4% of Workforce Amid Heavy AI Investment Costs

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Microsoft announced it will lay off nearly 4% of its global workforce as part of efforts to control costs while investing heavily in artificial intelligence infrastructure. The company, with about 228,000 employees as of June 2024, had already begun layoffs in May affecting around 6,000 workers, primarily in sales roles.

The tech giant has pledged $80 billion in capital spending for fiscal year 2025, but the soaring costs of expanding AI capabilities have pressured profit margins. Microsoft’s cloud margin for the June quarter is expected to decline compared to the previous year.

In addition to workforce reductions, Microsoft plans to simplify its organizational structure by reducing management layers and streamlining products, processes, and roles. The gaming division, including its Barcelona-based King unit known for Candy Crush, will also see job cuts of about 10%, or roughly 200 employees.

Microsoft’s layoffs follow a broader trend among Big Tech companies investing in AI, with peers like Meta trimming about 5% of its lowest performers, Alphabet cutting hundreds of jobs, and Amazon reducing staff across various segments amid economic uncertainties and rising operational costs.