SpaceX has agreed to acquire startup Cursor in a $60 billion deal, the latest move in Elon Musk’s push to close the gap with rivals on AI-powered coding tools.

A regulatory filing today (16 June) with the US Securities and Exchange Commission (SEC) confirmed Cursor investors will receive SpaceX stock based on the implied $60 billion equity value of the startup.

The transaction, which converts an earlier option into a binding merger agreement, is expected to close in Q3. After gaining regulatory approvals, Cursor will become a wholly owned subsidiary of SpaceX. The filing was signed by SpaceX CFO Bret Johnsen.

The deal came a week after SpaceX completed the largest initial public offering in history.

Bloomberg reported the Cursor acquisition is central to SpaceX’s ambitions for its AI business.

The news outlet noted Musk has publicly acknowledged xAI, which is now part of SpaceX’s operations, trails rivals including Anthropic and OpenAI on coding capabilities.

Bloomberg also reported SpaceX’s AI unit has been hit by internal turmoil, with dozens of departures across engineering and data training and ongoing difficulty recruiting top talent, prompting Elon Musk to bring in leadership from Starlink to steady the business.

It also noted US-based Cursor, whose AI coding assistant launched in 2023, has become one of the fastest-growing coding startups by helping developers write and debug software through chatbot prompts.

Before SpaceX moved to acquire the company, Cursor was reportedly in talks for a funding round that would have valued it at more than $50 billion, according to Bloomberg.

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A US federal judge reportedly dismissed xAI’s trade secret lawsuit against rival OpenAI with prejudice, dealing another legal blow to Elon Musk in his widening battle with Sam Altman’s company.

Reuters reported Elon Musk-owned xAI failed to demonstrate OpenAI induced former xAI engineer Xuechen Li to misappropriate trade secrets, or that Li disclosed any confidential information during a presentation he gave while OpenAI was recruiting him.

In the order, the judge wrote xAI essentially equated asking a job candidate about prior work experience with encouraging a potential employee to divulge trade secrets obtained during that work.

The news agency stated the dismissal with prejudice means xAI cannot raise the same claims again.

The judge already dismissed an earlier version of the lawsuit in February, giving xAI an opportunity to strengthen its case. Having found xAI failed to cure the shortcomings in its amended complaint, the judge ruled it would be futile to allow further attempts.

The lawsuit was originally filed in September 2025, alleging OpenAI engaged in a coordinated campaign to hire away xAI employees to access trade secrets related to its Grok chatbot, including source code and data centre deployment strategies.

Musk’s AI company claimed former employees took confidential material when they left for roles at OpenAI.

Reuters noted OpenAI previously called the lawsuit baseless and part of Musk’s ongoing campaign of harassment against the company.

The case is part of a broader legal battle between Musk and OpenAI, which he co-founded alongside OpenAI CEO Sam Altman before departing.

Musk is separately suing OpenAI over its conversion to a for-profit company, while the AI firm has countersued Musk for harassment.

xAI also sued Apple in federal court, alleging it conspired with OpenAI to suppress rival platforms.  

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AT&T Business expanded the reach of its 400G wavelength connectivity into 16 additional US metropolitan areas, extending the service as enterprises face mounting pressure to support AI-era traffic at scale.

With the 400G wavelength edgeless handoff capability now live across 440,000 properties serving more than 2.3 million business tenants, the mobile operator is targeting rapid deployment within 15 days where eligible.

AT&T stated the 400G rollout is designed to connect AI workloads from any location to the cloud, with security embedded in the network rather than added on top.

The company’s edgeless design approach anchors 400G at key interconnection hubs where cloud, network and enterprise traffic converge. It is currently in more than 130 carrier hotel locations nationwide.

The architecture is intended to deliver consistent handoff and predictable performance without requiring traditional network edge builds at every location or data centre.

Amrit Singh, industry principal for information communications technology at Frost & Sullivan, stated AT&T’s wavelength services reflect the infrastructure rigour required for the AI era, citing the company’s fibre reach and a successful 1.6 Tb/s single-carrier wavelength trial.

For enterprises scaling AI across multiple sites, AT&T noted the ability to avoid stitching together multiple smaller circuits as workloads grow is a key benefit for the service.

Branch locations, campuses and edge environments requiring high-capacity connectivity to centralised compute and cloud services are among the primary use cases for the service.

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Ericsson highlighted its private 5G service is now available through Verizon Business beyond US borders, giving multinational enterprises the ability to extend connectivity and boost digital transformation opportunities.

The Swedish vendor explained the expansion means global enterprises already running Ericsson technology in Verizon Business Private 5G Networks in the US can now replicate those capabilities across their operations worldwide.

As AI drives greater demand for secure, high-speed and low-latency connectivity, the collaboration is designed to offer enterprises more flexibility as they scale internationally.

Hannes Ekstrom, SVP and Head of Customer Unit Verizon at Ericsson Americas, said the vendor’s multinational customers in the US had already unlocked significant growth through 5G-enabled private networks and are now looking to extend those capabilities globally.

“By simplifying 5G adoption and enhancing reliability, low latency, and security, we are empowering industries to harness next-generation connectivity and drive innovation on a global scale,” he stated.

The Ericsson Private 5G platform operates as a dual mode 4G and 5G network with global spectrum support, built to connect in challenging indoor and outdoor environments.

It is designed to deliver ultra-low latency and high reliability for real-time applications including automated manufacturing, industrial IoT and AI-driven analytics, while keeping sensitive data within the enterprise’s private network to support compliance requirements.

Industries including manufacturing, logistics, healthcare, energy and higher education are among those expected to benefit from the international rollout, with use cases spanning smart factories, warehouse automation, remote diagnostics and AI-powered research infrastructure.

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Nvidia reportedly told Chinese customers its new Vera CPU for AI data centres could be available in August, in a move to regain ground in a market where its advanced GPU business has been stalled by US export curbs.

Reuters reported the chipmaker is pitching Vera as an alternative route into China after shipments of its H200 AI chip stalled for months. CEO Jensen Huang (pictured) previously said Nvidia’s market share in China had effectively fallen to zero, reflecting tighter US restrictions and Beijing’s push to support domestic suppliers.

The news site noted Vera is Nvidia’s first standalone CPU for agentic AI workloads, with the company claiming it delivers up to 1.8 times the performance of rival processors.

Huang unveiled Vera in March as part of Nvidia’s Vera Rubin architecture and cast the CPU as a major new growth engine, as the company looks to expand beyond GPUs and into the server processor market.

Sources told Reuters one major Chinese cloud provider is planning to order more than 300 servers containing two Vera CPUs each for testing, with the chips set to be deployed first in overseas data centres before any wider commitment.

The move also sharpens Nvidia’s challenge to Intel and AMD, which dominate the server CPU market.

Because Vera is based on Arm architecture rather than x86, Nvidia is entering the segment as AI infrastructure demand shifts further toward inference and agentic computing, where CPUs are becoming increasingly important alongside accelerators.

Reuters added selling CPUs into China may prove easier for Nvidia than shipping high-end GPUs, which remain subject to stricter US controls.

Broader adoption, however, is likely to hinge on software compatibility and the willingness of Chinese operators to move workloads away from domestic AI silicon.

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SpaceX reportedly leased the full capacity of its Colossus 1 data centre to Anthropic after running into technical problems using the site for its own Grok AI workloads.

Bloomberg reported last week (12 June) the company planned to use Colossus 1, located in the US state of Tennessee, as part of a three-campus cluster to train its more advanced AI models, but latency issues emerged when the facility was linked with two other sites more than 10 miles away

Sources told the news site the problems were said to be worsened by older network infrastructure.

Bloomberg noted high-performance AI training depends on fast, low-latency links between compute sites, but bottlenecks can slow the wider cluster.

Rather than continue trying to resolve those constraints, SpaceX decided leasing the site to third parties would generate greater value and create an additional revenue stream.

The move comes as SpaceX pushes its data centre expansion as a key plank of its investor story following its acquisition of xAI earlier this year.

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Anthropic was directed by the Trump administration to immediately suspend all access to its two most advanced AI models, Fable 5 and Mythos 5, citing national security concerns.

The directive issued on 12 June ordered the AI lab to disable both models for all customers globally, including foreign national Anthropic employees, whether inside or outside the US.

The Trump administration’s letter to Anthropic targeted foreign nationals, but because ensuring compliance would require verifying the nationality of every user, it shut both models down entirely for all customers, Anthropic stated in a blog.

The letter did not specify the nature of its national security concern, but Anthropic said its understanding is goverment officials believe a method of bypassing the model’s safeguards through jailbreaking has been identified.

The AI player stated it reviewed a demonstration of the technique and found it exposed only a small number of previously known minor vulnerabilities, all of which can be replicated using other publicly available AI models without any bypass required.

Anthropic pushed back on the administration’s justification for the suspension. The company noted in the weeks building up to Fable 5’s launch, it worked extensively with the US government, the UK AI Safety Institute and multiple private organisations.

Those tests, Anthropic said, showed Fable 5’s protections were substantially stronger than any previously deployed model. No tester has yet found a universal jailbreak capable of broadly bypassing the model’s defences, according to Anthropic.

It did acknowledge perfect jailbreak resistance is not currently achievable for any AI model provider and stated it disclosed this limitation publicly at launch.

Anthropic adopted what it describes as a defence in depth strategy, combining narrow jailbreak resistance with thorough monitoring and a 30-day customer data retention policy specifically designed to detect and shut down successful attacks.

Amazon angle
The Wall Street Journal (WSJ) reported the directive followed conversations between Amazon CEO Andy Jassy and US officials including Treasury Secretary Scott Bessent, after the retail giant’s researchers used a series of prompts to extract information from Fable 5 which were restricted.

Anthropic said it is complying with the legal order but disagrees the narrow potential jailbreak warrants recalling a model deployed to hundreds of millions of users. The company warned that applying this standard across the industry would effectively halt all new frontier model deployments.

Forbes reported some customers are seeking refunds from Anthropic for the disabling of Fable 5, citing a post on Reddit from the company which offers a prorated refund.

Anthropic apologised for the disruption, describing the situation as a misunderstanding, and said it is working to restore access as soon as possible.

AI policy shifts
Kevin Frazier, adjunct research fellow at the Cato Institute, said the episode exposes a deeper structural problem. The decision, he said, based on questionable justifications and made by actors subject to few effective constraints, strengthens the case for Congress to pass a transparent and technically grounded AI governance framework.

“Transparency, fairness, clarity, and evidence-driven enforcement should be core components of AI governance,” he said. “So long as AI policy decisions are driven by a few actors taking action behind closed doors in response to non-public reports, we will be far short of that standard.”

The Trump administration previously took a hands-off approach to AI regulations to spur development and stay ahead of China.

Earlier this month, Trump signed an executive order directing pre-deployment testing of frontier AI models, but the order was voluntary and did not create a licensing requirement.

In March 2026, the administration released its national AI legislative framework, a move aimed to create uniform security and safety guardrails while also attempting to pre-empt states from enacting their own rules.

Anthropic is currently on a Department of War blacklist designating the company as supply chain risk and barring it from government use. A federal judge blocked the order for the federal government to cut all contracts with Anthropic. The legal battle is ongoing.

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The government of Taiwan reportedly plans to deepen its diplomatic relationship with Paraguay through a planned $200 million data centre investment, in a rare technology investment designed to strengthen the pair’s diplomatic relationship.

Bloomberg reported the date centre partnership, which is backed by the Trump administration, is targeting 10-megawatts of computing capacity. It is expected to be operational by the end of 2027.

The data centre will be built on government land near the capital of Asuncion.

The news site noted Taiwan will supply Nvidia chips and supporting equipment, while Paraguay brings cheap hydropower and basic infrastructure to the partnership.

Both sides are in discussions with the US International Development Finance Corporation over financing arrangements.

Sources told Bloomberg Taiwan’s International Cooperation and Development Fund has separately approached Google, Microsoft and Amazon about potentially investing in the project or taking up capacity.

Paraguay is one of only a handful of countries worldwide which still maintains formal ties with Taiwan rather than China, but pressure is growing domestically for a reassessment of the position as neighbouring countries have attracted substantial Chinese investment.

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Google reportedly is in discussions with Samsung Electronics to manufacture part of its next-generation AI processor, which could include using the latter’s 2-nanometer production technology.

The Information reported Google plans for TSMC to produce the main computing component of its tensor processing unit (TPU), codenamed Icefish, while Samsung may manufacture a component which helps connect it to memory.

Reuters reported the tech giant is also working with chip designer MediaTek on the overall design. Icefish is still in development, with mass production possible as early as 2028.

Landing the deal would be a major boost for Samsung’s foundry ambitions, strengthening an effort to win more advanced chip manufacturing business.

Its 2nm process would allow more transistors to be packed into smaller chips, improving performance, energy efficiency and AI capabilities, Reuters noted. It added the South Korean vendor is also considering a second Texas plant to expand output.

The reports are the latest indication Google is looking to reduce its reliance on TSMC, which is struggling to keep pace with surging AI demand and could prove a bottleneck for the wider industry.

Earlier this week, The Information also reported Google is in talks with Intel to manufacture more than three million TPUs in 2028.

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Dell’Oro Group predicted cumulative 6G RAN capex would exceed $500 billion and revenue $100 billion in the first six years of deployment, spanning the period 2029 to 2034.

The company expects 6G RAN to account for approximately half of total capex during the period and tipped the technology to follow an evolutionary path, building on existing network architecture rather than reshaping the market entirely.

Dell’Oro does not expect 6G to expand the overall RAN market, forecasting an overall CAGR of 1% between 2030 and 2034.

It envisions 6G developing from Massive MIMO, existing sites and wider channel bandwidths, so changing RAN economics in stages. Capex is expected to accelerate toward the end of the 20230s.

Stefan Pongratz, VP of RAN and telecom capex research, said the most likely scenario is 6G would follow the established generational pattern, despite growing momentum for a so-called “G decoupling movement”.

He asserted “operators are in a much stronger position today from a network capacity perspective than they were during the transition from 4G to 5G”, meaning total 6G RAN revenue “during the first six years of the cycle is projected to be 10% to 20% lower than during the comparable period of the 5G cycle.”

The company expects sub-7GHz and cm wave bands to be key in 6G deployments, though noted growing momentum above 7GHz.

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NTT Global Data Centres (GDC) is reportedly seeking at least $1 billion in fresh capital to fund new development projects in the US, working with Citigroup to raise funds.

Bloomberg reported the company, which is a subsidiary of NTT Group, is selling stakes with the investment bank2sedxzsz`Ω in a development vehicle for new US data centre projects.

The size of the equity offering could increase depending on investor demand, and the company may also raise a credit facility alongside it.

The news site stated NTT GDC, which is the world’s third-largest data centre provider outside of China, has started sending marketing materials to prospective long-term investors including pension and infrastructure funds, with a formal sale process expected to launch in the coming weeks.

Bloomberg explained the establishment of a development company which owns and manages pre-revenue early-stage assets, gives data centre builders the flexibility to target a broader pool of long-term investors, who in turn can demand higher returns for taking on early-stage project risk.

The news site stated the talks are at an early stage, with details including timing and the final size of the fundraising subject to change.

In May 2025, NTT Data announced it bought land across North America, Europe and Asia to support nearly a gigawatt of planned data centre capacity, including new sites in the US states of Oregon and Arizona.

NTT GDC CEO Doug Adams told Bloomberg in March 2026 the company is working on 34 projects which will double its capacity within two years, with total capacity set to reach over five gigawatts within five years.

Also in March, NTT Data announced a multi-year plan to invest more than $10 billion by 2027 to deliver infrastructure capable of supporting dense AI workloads.

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The US Federal Communications Commission (FCC) teamed with federal, state and local agencies to ensure secure communications across host cities as the FIFA World Cup 2026 football tournament kicked off.

FCC chair Brendan Carr welcomed the start of matches yesterday (11 June), stating the commission’s public safety, enforcement and radio engineering experts collaborated with the White House Task Force, private sector communications providers and stadium operators to support robust networks throughout the tournament.

“This event will be an incredible showcase of America’s strength and spirit as we celebrate the nation’s 250th birthday,” Carr said, also thanking Task Force Executive Director Andrew Giuliani and the FCC’s own staff for their work on the effort.

On the public safety front, the FCC has been preparing for rapid interference detection and response during matches, helping ensure first responders and emergency communications systems operate without disruption.

The commission has also been working with federal, state and local partners to support lawful counter-drone operations under the Safer Skie Act and has issued 10 Special Temporary Authorizations for wireless devices and broadcast operations to aid global media coverage.

Wireless interference has been a central focus given the extraordinary demand placed on networks when large crowds converge in concentrated areas.

The FCC collaborated with industry partners to support high-capacity wireless and 5G connectivity in and around host venues, ensuring reliable operations for broadcasters, wireless carriers and media organisations.

To monitor the radio spectrum in real time, the FCC deployed a networked constellation of advanced spectrum sensors across all US venues, to enable remote monitoring and rapid identification of harmful interference.

The FCC is ensuring spectrum requirements for broadcast operations, public safety communications, event security and national security preparations are fully supported at the tournament locations.

It also conducted advance planning, testing and coordination activities with host cities ahead of the tournament.

The FCC noted these efforts lay the groundwork beyond the World Cup itself, strengthening national communications coordination frameworks in preparation for the 2028 Olympics and other future major events.

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IT provider Tata Consultancy Services (TCS) teamed with Anthropic to accelerate enterprise AI adoption, with a focus on highly regulated sectors where accuracy, auditability and governance requirements have historically slowed deployments.

As a Global Premier Partner in the Claude Partner Network, TCS will establish a dedicated business unit focused on delivering industry services and AI expertise built on Anthropic’s Claude family of models, with early access to new releases.

It will also provide Anthropic’s Claude AI assistant to more than 50,000 employees across engineering, finance, legal, marketing, and sales.

The two companies will jointly go to market with AI capabilities across financial services, public services, life sciences, healthcare, aviation, telecom, and medtech.

The partnership also spans several TCS businesses and platforms. Diligenta, TCS’s UK-based life and pensions business with over 22 million customers, will use Claude to improve customer experience through agentic process transformation.

TCS iON, which conducts more than 75 million annual assessments across 1,500 cities in India, will deliver learning and certification programmes on Claude models to help build an AI-certified workforce.

K Krithivasan, CEO and managing director of TCS, stated enterprise AI value comes from understanding business context, orchestrating complex systems and applying deep AI engineering talent.

“By combining Claude with our industry expertise, engineering rigour and large-scale transformation capabilities, we will help customers move faster to production, especially in industries where trust, resilience and regulatory discipline are critical,” he said.

The partnership comes as Anthropic, now valued at $965 billion, looks to extend the momentum which has pushed its valuation above rival OpenAI, with both startups moving towards public listings.

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AT&T unveiled a 24-hour unlimited wireless data service for iPad users in the US, available to any customer regardless of their existing operator for a flat daily rate of $3.

The company claimed to be the first major US wireless provider to offer on-demand connectivity for iPad users on a pay-as-you-go basis. The service is for models with mobile and Wi-Fi connectivity capabilities, with the 24-hour data window beginning shortly after purchase.

AT&T explained it is targeting consumers who do not activate mobile connectivity on compatible iPads, pitching the benefit of short-term network access for periods where users are not in Wi-Fi range.

It highlighted ease of use, stating the service is activated in device settings without the need for a dedicated app.

The first day pass is complimentary, with subsequent purchases charged to a credit or debit card.

Josh Goodell, VP of consumer product management, said the goal is to make connectivity simple across the devices people use most.

The operator positioned the launch as part of a broader effort to simplify connectivity and provide flexible options without long-term commitments.

Model compatibility ranges from seventh-generation iPads to the latest Pro and Air models with M3 chips.

AT&T ultimately plans to expand the service to other 5G-enabled devices including Android tablets, smartwatches, laptops and drones.

Multi-day options are also planned.

AT&T noted data rates may be temporarily reduced during periods of network congestion.

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AI platform disruptions rose sharply in early 2026 as growing enterprise adoption and heavier workloads exposed reliability issues across the full infrastructure stack, according to research from Ookla.

Analysing 471 days of US Downdetector data from 1 January 2025 to 16 April 2026 across ChatGPT, Claude, Gemini, Microsoft Copilot, AWS and Microsoft Azure, Ookla recorded 3.7 million user-reported problems.

High-signal disruption days, defined as when a service recorded more than 10 times its own median daily report volume, rose from six across four major AI apps in Q1 2025 to 51 in Q1 2026, according to the report by Ookla analyst Luke Kehoe.

Anthropic’s Claude model accounted for 39 of those 51 disruption days, making it the clearest example of scale-up volatility in the period. Gemini accounted for seven, Copilot three and ChatGPT two.

Claude recorded near-zero Downdetector reports in early 2025 before moving into a sustained report baseline from mid-July as adoption grew.

In Q1 2026, Claude generated 314,996 reports, while March volume alone was nearly three times February’s level. Ookla noted the pattern cannot be attributed to a single outage, with disruption clustered around demand surges, model-release windows and platform instability as Claude Code and Cowork usage scaled rapidly.

OpenAI’s ChatGPT produced the largest individual disruption signals in absolute terms, including roughly 68,000 reports on 2 December 2025, but its underlying reliability trend has improved.

Its monthly median daily report volume fell from a peak of 2,157 in April 2025 to 1,166 in April 2026, even as OpenAI reported more than 900 million weekly active users and rapid growth in Codex usage.

Google’s Gemini and Microsoft’s Copilot showed smaller but distinct patterns. Gemini’s high-signal disruption days rose from zero in Q1 2025 to seven in Q1 2026, consistent with rapid user growth.

Copilot’s outage pattern reflected its position inside Microsoft’s broader enterprise range, with far fewer reports on weekends, reflecting enterprise-aligned use.

Cloud infrastructure also featured prominently in the reliability picture. AWS’s 20 October 2025 DynamoDB DNS event generated more than 315,000 US reports, while Microsoft’s Azure Front Door incident on 29 October produced nearly 96,000, illustrating how failures in cloud control planes can cascade into AI platform disruptions.

Ookla concluded AI reliability has moved well beyond model serving, with failure points now spanning feature gates, GPU fleets, developer APIs, login systems and demand-management policies, all of which can appear to the end user as a single outage.

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UK operator Virgin Media O2 (VMO2) and Mavenir completed a proof-of-concept trial of technology designed to improve call clarity for customers suffering hearing issues without having to make changes on their phone.

Unlike device-based accessibility features or third-party apps, the service works entirely within the operator’s network. This allows participants to make and receive calls without needing to change their device or how they use it.

In the test participants completed a short, automated hearing test to identify how they perceive different sound frequencies. Personalised hearing profiles were then generated and securely linked to their mobile numbers, enabling the network to adapt how speech is delivered to them during calls in real time.

Following the trial, nearly 90% of participants reported improvements in call clarity, with many noting reduced listening effort, fewer misunderstandings and a more natural calling experience.

Jorge Ribeiro, director of core networks at Virgin Media O2, stated the trial was about using intelligence within the network to improve the experience without asking customers to do anything differently.

“We are encouraged by the early results from this proof-of-concept and are excited to explore how this type of technology could support more accessible services for our customers in future,” he said.

While still at an early stage, O2 said it is encouraged by the results and is exploring how the technology could be developed further to support accessible services at scale.

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Managed services provider MetTel completed a rapid network capacity upgrade for the US General Services Administration (GSA), equipping 11 federal offices across the country with connectivity infrastructure to support the Trump administration’s return-to-office mandate.

The project, delivered under the GSA’s Enterprise Infrastructure Solutions contract, involved the installation of 22 high-capacity network circuits alongside SD-WAN technology and VoIP services, enabling hundreds of federal employees to return to fully connected work locations.

Among the most demanding elements was a 10-gigabit circuit requiring entirely new carrier infrastructure, which was completed in under 60 days to meet the expedited timeline of a Telecommunications Service Priority order.

Don Parente, vice president of public sector at MetTel, said the mandate created an urgent, real-world test of the company’s capabilities.

“Our operations team delivered fast, reliable network modernisation, meeting the Administration’s Executive Order to return to work,” he said.

The SD-WAN architecture, which MetTel had previously deployed for the GSA, was a key enabler of the fast turnaround. The technology provides intelligent traffic management, enhanced resiliency and centralised network visibility, while high-capacity circuits were tailored to the specific needs of each site.

Bandwidth was sized for future growth, building in capacity to support evolving workforce and digital requirements without requiring additional infrastructure overhauls.

The Enterprise Infrastructure Solutions (EIS) programme under which the work was delivered, is a 15-year, $50 billion government-wide vehicle designed to help federal agencies modernise their telecommunications and network infrastructure.

US-based MetTel has held EIS contract authority since January 2020, delivering network modernisation, managed services and communications transformation projects throughout that period.

The upgrade underscores the broader infrastructure pressures facing federal agencies as the return-to-office push accelerates demand for reliable, high-capacity government networks.

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Global data centre capital expenditure is on course to exceed $1 trillion in 2026 according to new research from Dell’Oro Group, as hyperscale AI deployments accelerate and rising memory and storage costs push overall server spending higher.

The research company raised its worldwide data centre capex outlook for the year following a strong Q1, citing a combination of AI expansion, continued investment in general-purpose infrastructure and component cost inflation as the primary drivers.

Baron Fung, senior research director at Dell’Oro Group, stated rising memory and storage pricing substantially increased overall server system costs in the quarter and will likely remain a major capex growth factor throughout the year.

“At the same time, AI infrastructure deployments continue to accelerate rapidly, while hyperscalers also expanded general-purpose infrastructure to support public cloud growth, agentic AI workloads, and rising AI-related storage requirements,” he said.

The scale of spending among the largest cloud providers is striking. Amazon, Google, Meta, and Microsoft, the top four US hyperscalers, increased data centre capex by 78% year-on-year, reflecting the intensity of the AI infrastructure race.

On the supply side, Dell led server OEM revenue followed by Supermicro and Lenovo, though white-box vendors serving the hyperscale market accounted for most overall server revenue. Nearly all server vendors benefited from higher memory-driven system pricing.

Despite already exceptional spending growth in the first half of the year, Dell’Oro expects capex growth to accelerate further in the second half, driven by the ramp-up of Nvidia’s Vera Rubin platform and refresh cycles for hyperscaler custom accelerator platforms.

Beyond the major cloud providers, Fung noted select enterprise verticals and sovereign cloud providers are also increasing AI infrastructure adoption, “though growth remains constrained by uncertain returns and infrastructure readiness”.

“While near-term demand remains healthy, some spending may have been pulled forward ahead of expected price increases later this year,” explained Fung.

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Anthropic launched a public version of its Mythos AI model, but with guardrails in place to block its use in sensitive areas such as cybersecurity.

The AI player stated its Claude Fable 5 model is its most powerful to date on its launch yesterday (9 June), which is two months after Anthropic first unveiled its Mythos-class model.

The limited Mythos preview sent shockwaves through the industry after the model uncovered thousands of software vulnerabilities.

Last week Anthropic expanded the reach of its Mythos AI model to an additional 150 companies across more than 15 countries.

The startup describes Fable 5 as state-of-the-art on nearly all tested benchmarks of AI capability, claiming exceptional performance across software engineering, knowledge work, vision and scientific research. The longer and more complex the task, Anthropic stated, the larger Fable 5’s lead over its other models.

Anthropic stated it has done extensive testing to ensure users cannot manipulate Fable 5 into bypassing its guidelines. Queries on restricted topics will instead receive a response from the company’s Claude Opus 4.8 model.

The AI player acknowledged the safeguards are tuned conservatively and will sometimes catch harmless requests but said they trigger on average in fewer than 5% of sessions.

“With more capable models arriving in the coming months, we’re working to improve our safeguards and reduce false positives as quickly as we can,” Anthropic stated.

For a smaller group of cyber defenders and infrastructure providers, Anthropic is simultaneously launching Claude Mythos 5, which is the same underlying model as Fable 5 but with safeguards lifted in some areas.

Mythos 5 will initially be deployed through Project Glasswing in collaboration with the US government. It carries what Anthropic described as the strongest cybersecurity capabilities of any model in the world.

Users who had access to the Claude Mythos Preview will be able to upgrade to Mythos 5, with broader access planned through an expanded trusted-access programme.

Fable 5 and Mythos 5 are priced at $10 per million input tokens and $50 per million output tokens, less than half the price of Claude Mythos Preview.

The rollout comes as Anthropic, now valued at $965 billion, looks to extend the momentum which has pushed its valuation above rival OpenAI, with both startups racing toward public listings.

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Axon Networks acquired Greenwave Systems, combining two companies with shared roots to create a more unified, AI-powered network orchestration platform.

The US-based company stated the deal strengthens its cloud-agnostic Axon Maestro platform, purpose-built for telecom operators, institutions and enterprise service providers.

Greenwave’s software-defined mobile network services, including its network-as-a-service orchestration portfolio, will be added to Axon Maestro.

Greenwave’s technology will be folded into the Maestro platform as dedicated modules, with its engineering team shifting focus to OSS/BSS product development with expanded support for mobile connectivity.

Financial terms are not available.

At the heart of the integration is Axon’s real-time digital twin technology, which the company said will serve as the foundation for next-generation network inventory management.

Axon CEO Martin Manniche, who co-founded Greenwave in 2008 alongside other current Axon executives, stated operators are too often constrained by legacy operational support systems which require heavy customisation and slow down innovation.

“This limits their agility and effectiveness, delaying innovation and time-to-market for new services,” he said.

The deal also positions Axon to capitalise on growing operator interest in fixed wireless access and low earth orbit satellite connectivity.

As those technologies gain traction in access networks, the company argues end-to-end orchestration from the mobile core to in-home devices will become increasingly critical for delivering a consistent subscriber experience.

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