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Larry Ellison, Oracle’s chairman and technology chief, speaks at the Oracle OpenWorld conference in San Francisco on September 16, 2019.

Justin Sullivan | Getty Images

Every tech company is talking up its AI opportunity. Oracle is no exception. But during an earnings call in March, Oracle’s Larry Ellison laid out a future market opportunity focused on a major customer that investors may think about less often that Fortune 500 companies.

The Oracle founder, former CEO and current chairman and chief technology officer, sees national and state government applications being run on platforms like Oracle Cloud Infrastructure to a much greater degree than today, and indicated that it’s starting to happen in a variety of ways.

“We talk about, you know, winning business with companies. For the first time, we’re beginning to win business for countries,” Ellison said. “We have a number of countries where we’re negotiating sovereign regions with the national government.”

Major tech companies vying for massive government contracts in the cloud are nothing new. Microsoft and Amazon had a lengthy battle over a cloud deal with the Department of Defense, and both those AI players as well as Oracle and Google ended up all in on a $9 billion DoD contract in 2022.

But Ellison went further in his prediction when speaking with analysts on the recent earnings call, saying “Every government, pretty much every government, is going to want a sovereign cloud and a dedicated region for that government.”

Oracle, which works with Nvidia and Microsoft on generative AI capabilities, has already helped use cloud tech to cut red tape for countries. One example Ellison gave was Albania. It is trying to ascend to the European Union with the help of chatGPT, with the generative AI helping to decipher and summarize its laws and aid the country in what it needs to change in order to be compliant with E.U. regulations.

“It took Serbia eight years to harmonize their laws to be able to join the E.U.,” Ellison said. “Albania is facing the same thing, but with generative AI, we can read the entire corpus of the Albanian laws and actually harmonize their laws with the EU in probably more like 18 months to two years.”

Some analysts are skeptical of Ellison’s talk as being anything more than typical C-suite rallying for a key business unit. Oracle shares are up about 21% YTD, but Barclays analyst Raimo Lenschow expressed concern about lower OCI growth during its latest earnings, which could “worry investors, as this is the main investment story.”

Oracle shares pop on Q3 earnings despite mixed earnings

A version of future featuring cloud services and artificial intelligence-powered solutions can make government more efficient. Ellison said for starters, redundancy is a focus for government, in the case of disaster and disaster recovery. But it’s also moving into health care information and internet access projects.

Countries including Serbia are standardizing on Oracle Cloud Infrastructure and using generative AI for processes like automating health care. Deals related to delivery of internet services in partnership with Elon Musk’s Starlink to remote areas are taking place in Kenya and Rwanda, where OCI and Starlink are mapping rural farms to see which crops are growing in what area, and if they are getting enough nutrients like nitrogen and water.

“These maps are AI-assisted, help them plan their agricultural output and predict their agricultural output, predict markets, the logistics of the agricultural output, doing all of all of those things as next-generation national applications,” Ellison said.

Food security, rural school and rural hospital internet access, are other examples of what Ellison said are among the “all sorts of interesting new AI applications out there that you’ve probably never heard of before, at least I hadn’t heard of before until these last 12 months now that we’ve worked on and we’re now in the process of delivering.”

He also mentioned automation of vaccination programs, and other healthcare program “across the board.”

“We’re living in a world where like data and information is the gold of the future,” said Dan Gardner, CEO of digital strategy agency Code and Theory. “If the government can get access and action on that their data faster, why would we want to slow that down? We want that to be as efficient as possible. A lot of that is like mundane human resources, that maybe those people could be doing something else that is way more valuable.”

Cloud and generative AI applications allowing countries to give rural areas internet access could increase educational opportunities and create more economic value. It could also allow citizens to have more insight into government processes, said Tapan Parikh, Cornell University associate professor. “One thing technology’s always been good at is potentially making bureaucracies more efficient, or at least more transparent internally,” he said.

‘Black Mirror’ governments

But the push to move more government processes to the cloud is also opening the door to new risks, especially as countries trust newly developed generative AI systems. While they may make processes faster than ever, there are bound to be mistakes as the technology develops and could make citizen data accessible to cyber criminals.

“We shouldn’t use these technologies as an excuse to not maintain oversight and control over political processes,” Parikh said. “Certainly, I think that’s a very important thing, particularly when you’re dealing with countries that may not have the same kind of governance capacity.”

Oracle did not respond to a request for additional comment on Ellison’s earnings call discussion.

“There’s the ‘Black Mirror’ bad side of it: Big Brother, data wars, AI warfare and all that stuff,” Garder said. “As far as like removing red tape and being more efficient and getting better use out of crops across the country, that’s incredible. That’s the multiplier of humanity that could really improve because of AI.”

AI raises a host of concerns.

Gardner pointed to the proliferation of more generative content in an election year around the world and all the issues related to tech-enabled interference. “Maybe it’s not like chips on the ground. But it’s data security, authentication of who you are, who governments are, what content you’re viewing, all the connection points between financial systems, and AI governance. Using AI as a tool of destruction is quite scary.” 

“No big government in the world can afford to move all of their services and especially critical ones like defense, taxes, health care, completely into the cloud and into the hands of gen AI,” said Simone Bohnenberger, chief product officer at cloud company Phrase. “It’s just not in the realm of, I think it’s not responsible to do that. The potential risks outweigh the benefits of doing that.”

OpenAI, which created ChatGPT, is mostly trained on existing content on the internet. That could pose a problem, especially when text from lesser known languages like Albanian need to be analyzed, Bohnenberger said.

“If you look at the World Wide Web or the internet, the vast majority of content there’s English, I think a quarter of the content is English, followed by Chinese,” she said. “Albanian is a minority. It’s very questionable for me how well that actually works for a small country like Albania and like an outlier language, because there’s just not much data you can train a model on. And if you don’t have much data, then the outputs will be very messy.”

Then there’s security and data risks with allowing foreign companies access to citizen data, Parikh said. Even the U.S., with all its resources, has been vulnerable to data hacks, including a recent February incident with contractor CGI Federal which exposed personally identifiable information on employees. The recent battle between the U.S. and China over TikTok is an example of how control of sensitive consumer data can be interjected into geopolitics. “I think certainly that’s a concern going forward for countries who are working with vendors from different countries,” Parikh said.

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Amazon shareholders reject proposal to split CEO and chair roles

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Amazon shareholders reject proposal to split CEO and chair roles

Amazon CEO Andy Jassy speaks during an unveiling event in New York on Feb. 26, 2025.

Michael Nagle | Bloomberg | Getty Images

Amazon shareholders rejected a proposal to adopt a policy that would require the company’s CEO and board chair roles to remain separate.

Vote totals disclosed in a filing Thursday show about 82% of shareholders rejected the proposal. The independent proposal was submitted alongside seven others at Amazon’s annual meeting on Wednesday. Each of the independent proposals were rejected.

Amazon split the roles of CEO and board chair when founder Jeff Bezos turned the helm over to Andy Jassy in 2021. As part of the transition, Bezos retained the title of executive chairman.

The proposal sought to codify that structure within Amazon “like the majority of S&P 500 companies,” advocacy group the Accountability Board wrote in its submission. The group argued that the split structure allows the board to focus on corporate governance and oversight, while the CEO focuses on the company’s business.

“With the positions currently separated, now would be an opportune time to do so,” the proxy states.

Shareholder proposals seeking the separation of board chair and CEO roles have been on the rise in recent years. The number of such proposals increased 113% among Russell 3000 companies in the first half of 2023, the highest level in the past decade, according to the Harvard Law School Forum on Corporate Governance.

Amazon urged shareholders to vote against the proposal, saying the current policy enables the board to determine the right leadership for the company “in light of our specific circumstances at any given time.”

The separation in 2021 came “after careful consideration” of Amazon’s leadership structure and functions, the company wrote in its recommendation.

“In light of our success through these various leadership structures, the board believes that shareholders are better served by the board retaining the ability to adapt to our evolving needs and implement the optimal leadership structure at any given time,” Amazon wrote in the filing.

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Microsoft employees say emails with ‘Gaza,’ ‘Palestine,’ or ‘genocide’ won’t send

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Microsoft employees say emails with 'Gaza,' 'Palestine,' or 'genocide' won't send

Security officers block entrance doors after pro-Palestinian protesters attempted to enter the Microsoft Build conference at the Seattle Convention Center Arch building in Seattle, Washington on May 19, 2025.

Jason Redmond | Afp | Getty Images

Microsoft employees are concerned that the company has been blocking Outlook emails containing the words “Palestine,” “Gaza,” “genocide,” “apartheid” and “IOF off Azure,” even if they’re including those terms in an HR complaint, according to screenshots, recordings and documents viewed by CNBC.

Employees said they started noticing the change Wednesday just before noon PST, batch-testing emails with the terms in question and emails without them. Only the ones without such terms appeared in their outboxes, suggesting those containing the terms weren’t received, according to materials viewed by CNBC and three sources familiar with the matter.

The people asked not to be named in order to speak freely.

One employee with the word “apartheid” in their email signature, who spoke on condition of anonymity for fear of retaliation, said they sent a typical work-related email around 11:30 a.m. PST on Wednesday successfully. The person said that just before noon on the same day, their emails wouldn’t go through — ostensibly due to their email signature.

On internal message boards, messages seen by CNBC showed employees asking why their emails with the word “Israel” may go through but not the word “Palestine,” as well as “Gaza” and other terms. Modifications like “P4lestine” did go through, according to their tests.

One employee asked on an internal message board, “Is the company abandoning the inclusivity initiative or is this only targeting Palestinians and their allies?”

The Verge was first to report on the potential email block.

In a message seen by CNBC, Frank Shaw, Microsoft’s chief communications officer, responded to an employee post, writing: “To clarify, emails are not being blocked or censored, unless they are being sent to large numbers of random distribution groups. There can be a small delay and the team is working to make that as short as possible.”

“Over the past couple of days, a number of emails have been sent to tens of thousands of employees across the company and we have taken measures to try and reduce those emails to those that have not opted in,” a Microsoft spokesperson said in a statement.

But employees told CNBC that even when they attempted to send relatively mundane, solely work-related emails to small groups of colleagues, the emails still didn’t go through if they contained those terms.

Another employee who spoke on condition of anonymity said that when they attempted to send a report to HR containing one of the terms in question, they did not receive the auto-response typically confirming receipt until more than 24 hours later. The message also didn’t show up in the online HR portal until more than 24 hours later.

Some emails were delivered after being delayed by seven hours or more, according to the group No Azure for Apartheid. The group suggested manual reviews of such emails were taking place before they were delivered.

Microsoft protests

Microsoft has seen a growing number of protests at recent events over the Israeli military’s use of the company’s AI products. Protesters have also sent emails to the company’s executives outlining their concerns.

At Microsoft’s Build developer conference in Seattle this week, protesters interrupted executives during keynote speeches and sessions.

On Tuesday, protesters interrupted the Microsoft Build session on best AI security practices, singling out Sarah Bird, Microsoft’s head of responsible AI, who was co-hosting the session with Microsoft AI security chief Neta Haiby.

Haiby was formerly a member of the Israel Defense Forces, according to a Tumblr page viewed by CNBC.

“Sarah Bird, you are whitewashing the crimes of Microsoft in Palestine,” Hossam Nasr, an organizer with the group No Azure for Apartheid, said.

Nasr was one of the Microsoft employees terminated last year after planning a vigil for Palestinians killed in Gaza.

Earlier on Tuesday during another Microsoft Build session, an unnamed Palestinian tech worker disrupted a speech by Jay Parikh, Microsoft’s head of CoreAI.

“Jay, you are complicit in the genocide in Gaza,” the tech worker, who did not wish to share their name for fear of retaliation, said. “My people are suffering because of you. How dare you. How dare you talk about AI when my people are suffering. Cut ties with Israel.”

The worker then called to “free Palestine” and said, “No Azure for apartheid,” a nod to the group and its petition.

A demonstrator is removed from the audience as they interrupt a presentation by Microsoft Chairman and CEO Satya Nadella at the Microsoft Build 2025 conference in Seattle, Washington on May 19, 2025.

Jason Redmond | AFP | Getty Images

On Monday, Microsoft software engineer Joe Lopez interrupted CEO Satya Nadella’s keynote speech onstage, saying, “Satya, how about you show them how Microsoft is killing Palestinians? How about you show them how Israeli war crimes are powered by Azure?”

Lopez was later fired, according to a document viewed by CNBC that stated the reason as, “misconduct resulting in the violation of both company policy and our expectations of a respectful workplace.”

The document said Lopez would be ineligible to return to Microsoft as an employee, contractor, or in any other capacity, including an employee of a Microsoft partner, customer or other third party.

At Microsoft’s 50th anniversary event last month, two Microsoft software engineers publicly protested the use of the company’s AI by the Israeli military during executive presentations. The roles of both employees, Ibtihal Aboussad and Vaniya Agrawal, were terminated soon after, according to documents viewed by CNBC.

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OpenAI CFO says AI hardware will boost ChatGPT subscriptions in ‘new era of computing’

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OpenAI CFO says AI hardware will boost ChatGPT subscriptions in 'new era of computing'

OpenAI CFO on acquisition of Jony Ive's startup: Hardware is a part of next value-add for OpenAI

OpenAI is betting a new “era” of computing will justify the company’s decision to spend billions of dollars on bespoke hardware to go with it, Chief Financial Officer Sarah Friar said.

The artificial intelligence startup, best known for the ChatGPT chatbot, announced plans on Wednesday to buy iPhone designer Jony Ive’s devices startup io for about $6.4 billion. Ive’s company was founded roughly a year ago and doesn’t have a product on the market.

Friar told CNBC on Thursday that any startup as young as io was “hard to value.” But she sees an eventual return on that investment.

“You’re really betting on great people and beyond,” Friar said. “It’s not just about imagining what a new platform could look like — you’ve got to be able to craft it. You’ve got to be able to build it. You’ve got to be able to understand supply chains.”

Friar, who took the CFO job at OpenAI last summer and was formerly CEO of Nextdoor, said new devices will eventually get OpenAI’s technology in the hands of more users, and drive subscription growth and attach rates. ChatGPT last reported 500 million weekly active users, but monthly actives are higher, Friar said.

“When you start thinking about it beyond just a phone, it starts to grab the imagination,” she said. “If we can get people around the world excited to use AI, we have many ways to begin to think of a business model around that. So it could be an ongoing, bigger subscription for ChatGPT.”

Friar’s comments echo others in the tech industry who have said AI hardware could change the face of computing, and threaten the iPhone. Eddy Cue, Apple’s chief of services, said earlier this month that he believes AI devices could replace the iPhone within ten years.

While OpenAI works with Apple on an iPhone and Siri integration, Friar said the company still saw a need to have its own proprietary devices.

“We want to work with many partners. When we single-thread ourselves, we don’t think that drives max innovation,” Friar said. “We continue to work closely with Apple on their device, and we’d love to see more being done with AI — but we also want to keep sparking innovation broadly in the ecosystem.”

Friar hinted at new devices without touchscreens. She declined to give details around what exactly they might look like, pointing to the former Apple team’s secretive culture and “mystique” around products.

“As you birth this new era of AI, there’s going to be new platforms and new substrate,” she said. “We think of tech today as a little bit more around touch. We as humans, we see things, we hear things, we talk. And our models are great at that.”

WATCH: CNBC’s full interview with OpenAI CFO Sarah Friar

Watch CNBC's full interview with OpenAI CFO Sarah Friar

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