6th July 2025, Kathmandu
The latest RCR Daily from July 3, 2025, brings a torrent of news from the tech and telecom world, highlighting monumental deals, crucial infrastructure advancements, and significant shifts in global digital strategies.
Oracle’s OpenAI Deal
Supersized Deals and Cloud Sovereignty in Focus
The tech world is buzzing with confirmation that Oracle’s massive $30 billion annual contract is, in fact, with OpenAI. This colossal deal is set to turbocharge an expanded “Stargate” project, leading to an unprecedented wave of new data center constructions. This collaboration underscores the escalating demand for high-performance computing to power advanced AI initiatives.
Meanwhile, the concept of sovereign cloud is gaining serious traction, particularly in Europe. Deutsche Telekom (DT) is consolidating its B2B cloud offerings, aiming to provide localized, secure public and private cloud services tailored for European enterprises. This move reflects a growing emphasis on data residency, regulatory compliance, and digital independence for nations and regions.
5G Innovation and Global Telecom Dynamics
In a significant stride for next-generation connectivity, Orange and Samsung have completed their first vRAN (virtualized Radio Access Network) and Open RAN (Open Radio Access Network) calls in France. This achievement is a key step in Orange’s strategy to diversify its supplier base and embrace more flexible, cloud-native 5G architectures, with further testing anticipated later this year.
The Asian telecom landscape is also undergoing a shake-up. The Indian government is actively pushing for increased competition within its telecom market, aiming to disrupt the long-standing duopoly of Jio and Airtel. This initiative reiterates governmental support for challengers like Vodafone Idea and BSNL, hoping to foster a more competitive and innovative environment.
Green Tech, AI, and Data Center Shifts
The mobile industry is demonstrating a commitment to sustainability, with telecom operators actively cutting emissions despite the surging demand for data. However, to meet ambitious 2030 targets, the pace of emission reduction must double, with supply chains identified as a major hurdle. This highlights the industry’s ongoing challenge to balance growth with environmental responsibility.
In the realm of AI, Emerald AI has emerged from stealth with $24.5 million in funding, showcasing software designed to help AI data centers reduce power consumption and alleviate strain on electrical grids. This innovation is crucial as AI’s energy demands continue to rise.
Furthermore, a significant power shift is anticipated in the colocation data center market, with Cushman & Wakefield predicting Asia Pacific will become the world’s largest market by 2030. This growth is fueled by increasing digital demand, high-growth economies, and strong investor interest across the APAC region.
Beyond the Headlines: AI’s Impact and Market Realities
The report also touches upon the transformative role of generative AI within telco operations, from call centers to back-office systems. While telcos are exploring this technology’s potential, they are approaching its integration with caution, especially in critical environments.
The debate around Open RAN revenue continues, with Téral Research reporting slight growth in 2024, a claim that contradicts other market analyses. Despite differing figures, there’s a consensus that significant hurdles remain for widespread Open RAN adoption. Nevertheless, a recent 5G Open RAN stadium network deployment at Germany’s largest European football stadium demonstrates the potential of neutral-host solutions for large-venue connectivity.
In other news, Microsoft is undergoing significant layoffs, impacting approximately 9,000 workers, particularly in gaming and sales. Legal developments are also noteworthy, with a court ordering OpenAI to preserve all ChatGPT logs indefinitely as potential evidence in ongoing copyright cases.
Finally, the discussion around “sovereign” AI raises questions, particularly regarding Europe’s increasing reliance on U.S. firms like Nvidia for its AI ambitions. This reliance prompts important considerations about control, sustainability, and long-term strategic independence in the rapidly evolving global AI landscape.
For more: Oracle’s OpenAI Deal