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Democratic AGs Urge Court to Reconsider DOJ Settlement in $14B HPE-Juniper Deal

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A coalition of 20 Democratic attorneys general, led by Colorado’s Phil Weiser, is urging a federal court to scrutinize and potentially reject the U.S. Department of Justice’s settlement that cleared Hewlett-Packard Enterprise’s $14 billion acquisition of Juniper Networks.

In a letter filed Friday, the AGs argued the court must examine whether the DOJ’s decision was tainted by “undue influence” from politically connected lobbyists. “If… the evidence establishes that it was the product of undue influence, then the court should reject it as against the public interest,” Weiser wrote.

The DOJ initially sued to block the merger in January, shortly after Trump took office, citing antitrust concerns that the deal would leave HPE and Cisco controlling over 70% of the U.S. networking equipment market. But just before trial in June, the DOJ reversed course, dropping its case in exchange for HPE agreeing to license Juniper’s AI technology and divest a unit serving small and mid-sized businesses.

That reversal has fueled controversy. Two DOJ antitrust officials who approved the settlement were later fired, in what sources described as retaliation against division head Gail Slater for resisting political pressure to settle. Former DOJ official Roger Alford, one of those dismissed, later accused leadership of having “perverted justice” to favor HPE.

The AGs want the court to hear testimony from Alford and other DOJ staff, as well as consultants tied to HPE, before finalizing approval. The push sets up another flashpoint in the broader debate over antitrust enforcement and political interference in major tech-sector mergers.

Nvidia and HPE Partner to Build New Supercomputer in Germany

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Nvidia and Hewlett Packard Enterprise (HPE) announced a collaboration with Germany’s Leibniz Supercomputing Centre to construct a new supercomputer named Blue Lion, which will incorporate Nvidia’s next-generation Vera Rubin chips. The system is scheduled to become operational for scientific use in early 2027.

The announcement, made during a supercomputing conference in Hamburg, Germany, follows similar developments in the United States, where Nvidia recently revealed that Lawrence Berkeley National Lab will also deploy systems utilizing Vera Rubin chips next year.

Additionally, Nvidia confirmed that Jupiter, a separate supercomputer at Forschungszentrum Jülich, has officially become Europe’s fastest system, further cementing Nvidia’s growing role in global supercomputing efforts.

These initiatives reflect a broader push by European research institutions to maintain competitiveness with U.S. advancements in supercomputing, which serve critical scientific domains such as biotechnology, physics, and climate research.

Nvidia, which initially gained prominence by offering chips to accelerate complex scientific calculations, is now working to integrate artificial intelligence into these processes. Traditional models, like climate change simulations, require extensive and precise computations that often take months to complete. Nvidia’s AI approach aims to significantly shorten this timeline while still delivering valuable predictive insights.

As part of this strategy, Nvidia introduced its Climate in a Bottle AI model. According to Dion Harris, Nvidia’s head of data center product marketing, the system allows researchers to input initial conditions such as sea surface temperatures to generate 10- to 30-year forecasts, offering highly localized projections of future weather patterns.

“Researchers will use a combined approach of classic physics and AI to resolve turbulent atmospheric flows,” Harris explained. “This technique will allow them to analyze thousands and thousands more scenarios in greater detail than ever before.”

The ongoing evolution of Nvidia’s supercomputing and AI capabilities underscores its expanding influence beyond its traditional markets and highlights a significant technological shift in global scientific research methodologies.

HPE Forecasts Below-Estimate Revenue Amid Tariff Impact and Cost-Cutting Measures

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Hewlett Packard Enterprise (HPE) has projected quarterly revenue growth below analysts’ estimates, resulting in a nearly 20% drop in its shares in after-hours trading. The company attributed this forecast to the uncertainty created by the U.S. tariff war, which has affected its server business.

CEO Antonio Neri addressed the issue on a post-earnings call, explaining that HPE plans to adjust the prices of its products and leverage its global supply chain to mitigate the impact of both imposed and threatened tariffs. Neri added that the forecast reflects the company’s best estimate of the net effects of U.S. tariff policy.

U.S. President Donald Trump recently exempted certain goods from Canada and Mexico under a North American trade pact until April 2, temporarily easing some tariffs. However, Trump’s additional 10% duty on Chinese goods, which follows a 10% tariff imposed earlier in February, took effect this week, adding more pressure on companies like HPE.

Sales outside the U.S. account for nearly 64% of HPE’s net revenue in fiscal 2024, with key operations, including production and final assembly, based in Mexico and China. CFO Marie Myers stated that the company expects to mitigate much of the tariff impact during the second half of the year, although some effects may be felt in the second quarter as mitigation measures are gradually implemented.

HPE’s second-quarter revenue forecast falls between $7.2 billion and $7.6 billion, which is below the analysts’ expected $7.93 billion. The company’s profit forecast also missed expectations. In a bid to cut costs, HPE announced plans to lay off 5% of its global workforce, equating to approximately 2,500 jobs. These layoffs are part of a cost-saving program expected to generate about $350 million in savings by fiscal 2027. HPE had around 61,000 employees as of October 31.

Despite these challenges, the company reported first-quarter revenue of $7.85 billion, slightly surpassing analysts’ estimates of $7.82 billion. Server revenue grew by 29%, reaching $4.3 billion.