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Sep 10, 2025
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Supported by
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Happy Wednesday! Microsoft plans to use Anthropic's models for AI features in its Office 365 software. Oracle projects a huge increase in cloud infrastructure revenue to $144 billion by fiscal 2030. Apple announces its thinnest-ever iPhone.
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Microsoft is planning to use models from OpenAI’s chief rival, Anthropic, to power AI features in its Office 365 software, after previously relying on OpenAI’s models for the AI features. The move reflects how Microsoft is partially shifting to other providers for AI features in the software, known as Copilot, integrated into products like Word, Excel, and PowerPoint. The decision stems from the fact that Anthropic’s latest models, specifically Claude Sonnet 4, performed better than OpenAI’s on complex tasks like automating financial functions in Excel and generating more aesthetically pleasing PowerPoint presentations, according to people involved in the effort. The move also comes amid ongoing negotiations between Microsoft and OpenAI over the startup’s plans to restructure for an eventual IPO. Microsoft will pay for the AI from Amazon Web Services, which hosts Anthropic’s models, to power the products. Microsoft has previously tapped Anthropic to power advanced “agent” features in GitHub Copilot and has been exploring alternatives for its consumer-facing Copilot app, including models from xAI and its own in-house models, dubbed MAI-1.
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Oracle stock leapt 20% in after-hours trading after the software-and-cloud firm projected that new cloud contracts it signed in the first quarter would lift revenue from that business sharply in the next few years, transforming Oracle’s financial performance. The company also revised upwards its capital expenditures projection for the current fiscal year to $35 billion from $21 billion in fiscal 2025. As recently as June it had projected this year’s capex would rise to $25 billion. Oracle said revenue from cloud “infrastructure”—renting servers to businesses—would grow 77% to $18 billion this fiscal year and then would grow to reach $144 billion by fiscal 2030. Cloud infrastructure had been growing at a 50% annual rate, but from a very small level. In the first quarter, Oracle reported it generated $3.3
billion in revenue, while overall revenue was $14.9 billion, up 12%, at the lower end of projections. The projection for 2030 is below what Wall Street was expecting, as analysts now project Oracle’s fiscal 2030 revenue will reach $145.6 billion. That implies Oracle’s other businesses, which now make up the vast majorit of its top line, generate only $1 billion. Oracle based the new projections on “four multi-billion dollar contracts” it signed with three new customers in the first quarter.
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Apple is slimming down. At the company’s annual September hardware event, Apple announced its thinnest iPhone ever at 5.6 millimeters—two millimeters slimmer than its regular phones. It also introduced three other iPhone models with proportions similar to its existing family of smartphones–—the iPhone 17, 17 Pro and 17 Pro Max. It appears that Apple is making some tradeoffs for battery life with the iPhone Air’s thinness. The company said it has “all day battery life,” but the most specific figure it provided—40 hours of video playback—requires the iPhone Air to be paired with an external battery pack. Meanwhile, Apple said that the iPhone 17 Pro Max had 39 hours of video playback without any external battery. With the new thin iPhone, Apple is beginning a period of more aggressive design changes to
the iPhone. A foldable iPhone is expected next year, according to The Information’s past reporting, and the 20th-anniversary iPhone in 2027 is expected to have a major update of an all-glass design, according to analysts. In a potentially telling move John Ternus, a senior vice president of hardware engineering at Apple, introduced the iPhone Air at Apple’s event. Ternus is considered the most likely candidate to become Apple’s next CEO. Entrusting him to announce the company’s most important product could be an indication that Apple is preparing him to assume a bigger role.
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Klarna said late Tuesday it had priced its initial public offering at $40 a share, above its planned range of $35 to $37, confirming an earlier report in The Information. This gives Klarna a market value above $15 billion. It sold $1.37 billion in shares in the IPO, including from shareholders such as Sequoia Capital. Better-than-expected demand from its investor roadshow caused the company to raise expectations, with significant demand from institutional investors, according to people familiar with the matter. The Swedish fintech company is expected to debut on
Wednesday.
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Nvidia on Tuesday unveiled a new graphics processing unit designed to power existing artificial intelligence, known as inference workloads. The move signals that Nvidia believes data centers of the future need a specific chip for running AI-powered applications like ChatGPT rather than its general purpose GPU, which companies such as OpenAI and xAI use to handle inference workloads and to train new AI models. Nvidia’s new chip could dampen the efforts of numerous chip rivals such as Google, Amazon, Microsoft, Groq and Cerebras. Those rivals developed inference-focused chips, aiming to exploit
the lack of an Nvidia chip for such workloads. OpenAI and Apple also have been developing inference chips with the help of chip designer Broadcom. On stage at the AI Infra Summit in Santa Clara, Nvidia executive Ian Buck said the new GPU, Rubin CPX, is based on the company’s next-generation Rubin chip and would be available at the end of 2026. The CPX chip is better at workloads that require massive amounts of context processing, which can be helpful for software coding and video generation startups, he said. Buck said firms including Cursor, Runway, Fireworks and Together plan to use the upcoming chip.
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