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How Akamai’s CIO balances enthusiasm and concerns about AI technology

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Kate Prouty, the chief information officer at Akamai Technologies, says workers at the cybersecurity and cloud computing company have developed a voracious appetite for artificial intelligence. They firmly believe that those with sharper AI skills will have an advantage.

“The demand for AI is out of control,” says Prouty. “It feels like a tsunami. Everyone feels like they need AI.”

While such enthusiasm may make it easier for Akamai to see strong adoption rates when new AI tools are deployed, it can also come with organizational challenges for leaders like Prouty, who oversees the company’s global IT organization and is responsible for assessing, testing, and deploying new AI tools to be used by over 9,000 employees globally.

Following the beginning of the generative AI boom in late 2022, Akamai initially embraced a “thousand flowers bloom” strategy for AI. The company quickly set up internal infrastructure that would give employees a safe “sandbox” to test use cases. While none of these AI applications were intended for full production, Akamai saw the value in encouraging experimentation. But only up to a point. 

“It didn’t make sense to me as a CIO that I would have people out in the Akamai ecosystem just developing AI and developing copilots,” explains Prouty, a 26-year veteran at Akamai. 

Now, Prouty prefers a more centralized approach and has adopted the thesis that most generative AI use cases that Akamai will adopt will come from the company’s vendors, including Cisco, Salesforce, and Google. Her team spends a lot of time with vendors, including a wide variety of AI startups that pitch Akamai, to better understand what their technologies can deliver, their future innovation roadmaps, and the changes that Akamai may need to make internally so it can best tap into these AI tools and generate meaningful productivity gains. 

When Akamai does opt to move forward with an AI feature, it does so in a highly measured rollout. “We’re sort of looking at as many of our vendors as we can in a very small pilot way, to understand what it is they’re offering and how it’s going to benefit us,” says Prouty, noting that she still has concerns about the maturity of AI technology and about the “murky” cost structures she’s seen from some vendors.

Each time an AI pilot is launched, Akamai creates a team chat channel in Webex so that people can share what’s working—or not working—when trying new AI capabilities.

Github Copilot has been rolled out under a “controlled release” for software engineers and in some cases, projects that would take weeks can be achieved in hours. But in other cases, the code written by the AI assistant doesn’t make sense and more work is needed to fix the errors. “There’s a learning curve,” says Prouty.

There is also some internal appetite to test offerings from other AI coding assistants, including Cursor and Anthropic’s Claude. But before Prouty signs off on that, she wants to really home in on measurable productivity benefits.

“I am still seeing that the technology is not quite there,” says Prouty. Workers still hit a lot of roadblocks when adopting these new AI tools and when that’s conveyed to vendors, they’re quick to say, “‘Oh yeah, that’s coming in the next release,’” she adds.

For some limited cases, Akamai sees a competitive advantage in building in-house AI tools. For example, the company partnered with French AI startup Dataiku to build a chatbot for the sales team, which taps into a blend of OpenAI’s LLMs and internal data from Akamai. The sales team is able to use this tool to pull a mix of private and public information about customers before making a pitch.

And while 2025 was christened as “the year of agents,” Akamai remains firmly on the sidelines when it comes to testing agentic AI. “I just don’t know if the technology is there yet,” says Prouty.

But even with the IT department exerting greater control of Akamai’s AI strategy, Prouty says she encourages an open-door policy when it comes to fielding new AI ideas.

“Let’s encourage, not discourage,” says Prouty. “Bring us your use cases. Let’s help you do that in a way that’s secure. But we’re going to put some cost controls around it.”

John Kell

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NEWS PACKETS

Salesforce debuts a new way to make it easier to build AI agents. Ahead of Salesforce’s annual Dreamforce customer conference this week, the software giant unveiled a new platform called Agentforce 360, which is intended to make it easier for businesses to build, control, and deploy AI agents. Rivals including Google and Amazon Web Services have also recently unveiled more centralized AI agent platforms as adoption of this technology is frequently stuck in the pilot phase. “Companies have invested a lot in AI, but they’re not getting the value,” Srini Tallapragada, president and chief engineering and customer success officer at Salesforce, said during a press briefing last week, according to CIO Dive.

Meta scoops up Thinking Machines Lab co-founder. Andrew Tulloch, an AI researcher and co-founder of Mira Murati’s Thinking Machines Lab, has left to rejoin Meta Platforms. Tulloch previously worked at Meta for 11 years and left in 2023 to join OpenAI before co-founding Thinking Machines Lab alongside Murati, who previously served as CTO at OpenAI, at the beginning of 2025. The Wall Street Journal reports that it is unclear which team Tulloch will be on at Meta. But the hire further highlights Meta CEO Mark Zuckerberg’s particularly aggressive push to poach top AI talent from competitors, hiring more than 50 top AI researchers from OpenAI, Google DeepMind, Apple, and others.

Broadcom hooks up with OpenAI. OpenAI is proving to have the “Midas Touch” on a large number of tech stocks and the latest to enjoy the glisten from the ChatGPT maker is Broadcom, which stands to generate billions in new revenue from a newly announced multi-year deal to sell the company’s custom chips and networking equipment to support the AI startup’s infrastructure needs. Under the terms of the deal, OpenAI will design the hardware and work with Broadcom to develop it. OpenAI’s recent long-term partnership with AMD (the sponsor of this newsletter) also sent shares of that chip supplier earlier in October, while Bloomberg reports that at OpenAI’s annual developers event, mere mentions of other companies like Figma, HubSpot, and Salesforce led to stock gains for those public companies.

ADOPTION CURVE

Executives say AI is now essential to their operations. Nearly three-quarters of executives say that their company would struggle to function without AI, a figure that rises to 77% of smaller companies with fewer than 10,000 employees, according to a survey of 1,500 IT business executives conducted by PagerDuty, which helps incident management for IT departments. A vast majority of the companies (84%) also reported that they are using AI in software development to write, review, or suggest code.

Additionally, the survey uncovered that three out of four companies have deployed at least one AI agent, with 25% saying they’ve deployed five or more. 81% of executives said they would also trust AI agents to take actions on a company’s behalf during a crisis, which could include a service outage or security event. But less optimistically, 85% say they need better procedures to detect errors or failures in AI tools and 84% of companies report experiencing at least one AI-related outage.

Courtesy of PagerDuty

JOBS RADAR

Hiring:

The state of Wisconsin is seeking a CIO, based in Dane, Wisconsin. Posted salary: $148.5K/year.

Amalgamated Bank is seeking a chief information security officer, based in New York City. Posted salary range: $240K-$260K/year.

Mascoma Bank is seeking a SVP of IT, based in White River Junction, Vermont. Posted salary range: $142.1K-$191.9K/year.

Instrumental is seeking a VP of engineering, based in Palo Alto, California. Posted salary range: $330K-$360K/year.

Hired:

The Knot Worldwide appointed John James as CTO, reporting to CEO Raina Moskowitz. James joins the wedding-planning website from financial services company Ouro, where he served as SVP of engineering. He also previously worked as VP of technology at travel technology company Expedia Group.

ASML Holding NV promoted Marco Pieters to the roles of EVP and CTO, reporting to CEO Christophe Fouquet. Pieters has had over 25 years at the Dutch semiconductor company, most recently as EVP for the product area of applications. He initially joined ASML in 1999 as a software designer.

Ibex announced the appointment of Michael Ringman, joining the outsourcing company from industry peer Telus International, where he most recently served as CIO/CTO. Prior to that, Ringman worked at another outsourcing firm, TeleTech Holdings, where he served as VP of global technology infrastructure.

JWP Connatix named Pat DeAngelis as CTO, joining the video technology company to advance its product roadmap. DeAngelis has  more than 20 years of leadership experience in the ad tech space, including serving as co-CTO at Innovid and CTO of Flashtalking.

Sovos appointed Peter Gaffney as CIO, joining the compliance and tax reporting software provider after most recently serving as SVP and CISO for workforce management software provider Magnit. He has also held technology leadership roles at Oracle, Blue Cross Blue Shield, Condé Nast, and Ann Taylor.

ConstructConnect appointed Gaurav Singal as CTO, where he will steer product development, IT, and security for the construction software provider. Singal joins ConstructConnect from payments firm Cantaloupe, where he served as CTO. He also previously served as CIO of the Georgia Lottery, chief product officer for the last mile division at XPO Logistics, and VP of technology at Goldman Sachs.



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YouTube launches option for U.S. creators to receive stablecoin payouts through PayPal

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Big Tech continues to tiptoe into crypto. The latest example is a move by YouTube to let creators on the video platform choose to receive payouts in PayPal’s stablecoin. The head of crypto at PayPal, May Zabaneh, confirmed the arrangement to Fortune, adding that the feature is live and, as of now, only applies to users in the U.S. 

A spokesperson for Google, which owns YouTube, confirmed the video site has added payouts for creators in PayPal’s stablecoin but declined to comment further.

YouTube is already an existing customer of PayPal’s and uses the fintech giant’s payouts service, which helps large enterprises pay gig workers and contractors. 

Early in the third quarter, PayPal added the capability for payment recipients to receive their checks in PayPal’s stablecoin, PYUSD. Afterwards, YouTube decided to give that option to creators, who receive a share of earnings from the content they post on the platform, said Zabaneh.

“The beauty of what we’ve built is that YouTube doesn’t have to touch crypto and so we can help take away that complexity,” she added.

Big Tech eyes stablecoins

YouTube’s interest in stablecoins comes as Google and other Big Tech companies have shown interest in the cryptocurrencies amid a wave of hype in Silicon Valley and beyond. 

The tokens, which are pegged to underlying assets like the U.S. dollar, are longtime features of the crypto industry. But over the past year, they’ve exploded into the mainstream, especially after President Donald Trump signed into law a new bill regulating the crypto assets. Proponents say they are an upgrade over existing financial infrastructure, and big fintechs have taken notice, including Stripe. In February, the payments giant closed a blockbuster $1.1 billion purchase of the stablecoin startup Bridge.

PayPal has long been an earlier mover in crypto among large tech firms. In 2020, it let users buy and sell Bitcoin, Ethereum, and a handful of other cryptocurrencies. And, in 2023, it launched the PYSUD stablecoin, which now has a market capitalization of nearly $4 billion, according to CoinGecko.

PayPal has slowly integrated PYUSD throughout its stable of products. Users can hold it in its digital wallet as well as Venmo, another financial app that PayPal also owns. They can use it to pay merchants. And, in February, a PayPal executive said small-to-medium sized merchants will be able to use it to pay vendors.

YouTube’s addition of payouts in PYUSD isn’t the first time Google has experimented with PayPal’s stablecoin. An executive at Google Cloud, the tech giant’s cloud computing arm, previously toldFortune that it had received payments from two of its customers in PYUSD. 



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Oracle slides by most since January on mounting AI spending

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Oracle Corp. shares plunged the most in almost 11 months after the company escalated its spending on AI data centers and other equipment, rising outlays that are taking longer to translate into cloud revenue than investors want.

Capital expenditures, a metric of data center spending, were about $12 billion in the quarter, an increase from $8.5 billion in the preceding period, the company said Wednesday in a statement. Analysts anticipated $8.25 billion in capital spending in the quarter, according to data compiled by Bloomberg. 

Oracle now expects capital expenditures will reach about $50 billion in the fiscal year ending in May 2026 — a $15 billion increase from its September forecast — executives said on a conference call after the results were released.

The shares fell 11% to $198.85 at the close Thursday in New York, the biggest single-day decline since Jan. 27. Oracle’s stock had already lost about a third of its value through Wednesday’s close since a record high on Sept. 10. Meanwhile, a measure of Oracle’s credit risk reached a fresh 16-year high.

The latest earning report and share slide marks a reversal of fortunes for a company that just a few months ago was enjoying a blistering rally and clinching multibillion-dollar data center deals with the likes of OpenAI. The gains temporarily turned co-founder Larry Ellison into the world’s richest person, with the tech magnate passing Elon Musk for a few hours.

Known for its database software, Oracle has recently found success in the competitive cloud computing market. It’s engaging in a massive data center build-out to power AI work for OpenAI and also counts companies such as ByteDance Ltd.’s TikTok and Meta Platforms Inc. as major cloud customers. 

Fiscal second-quarter cloud sales increased 34% to $7.98 billion, while revenue in the company’s closely watched infrastructure business gained 68% to $4.08 billion. Both numbers fell just short of analysts’ estimates.Play Video

Still, Wall Street has raised doubts about the costs and time required to develop AI infrastructure at such a massive scale. Oracle has taken out significant sums of debt and committed to leasing multiple data center sites. 

The cost of protecting the company’s debt against default for five years rose as much as 0.17 percentage point to around 1.41 percentage point a year, the highest intraday level since April 2009, according to ICE Data Services. The gauge rises as investor confidence in the company’s credit quality falls. Oracle credit derivatives have become a credit market barometer for AI risk.

“Oracle faces its own mounting scrutiny over a debt-fueled data center build-out and concentration risk amid questions over the outcome of AI spending uncertainty,” said Jacob Bourne, an analyst at Emarketer. “This revenue miss will likely exacerbate concerns among already cautious investors about its OpenAI deal and its aggressive AI spending.”

Remaining performance obligation, a measure of bookings, jumped more than fivefold to $523 billion in the quarter, which ended Nov. 30. Analysts, on average, estimated $519 billion.

Investors want to see Oracle turn its higher spending on infrastructure into revenue as quickly as it has promised. 

“The vast majority of our cap ex investments are for revenue generating equipment that is going into our data centers and not for land, buildings or power that collectively are covered via leases,” Principal Financial Officer Doug Kehring said on the call. “Oracle does not pay for these leases until the completed data centers and accompanying utilities are delivered to us.”

“As a foundational principle, we expect and are committed to maintaining our investment grade debt rating,” Kehring added.

Oracle’s cash burn increased in the quarter and its free cash flow reached a negative $10 billion. Overall, the company has about $106 billion in debt, according to data compiled by Bloomberg. “Investors continually seem to expect incremental cap ex to drive incremental revenue faster than the current reality,” wrote Mark Murphy, an analyst at JP Morgan.Play Video

“Oracle is very good at building and running high-performance and cost-efficient cloud data centers,” Clay Magouyrk, one of Oracle’s two chief executive officers, said in the statement. “Because our data centers are highly automated, we can build and run more of them.”

This is Oracle’s first earnings report since longtime Chief Executive Officer Safra Catz was succeeded by Magouyrk and Mike Sicilia, who are sharing the CEO post.

Part of the negative sentiment from investors in recent weeks is tied to increased skepticism about the business prospects of OpenAI, which is seeing more competition from companies like Alphabet Inc.’s Google, wrote Kirk Materne, an analyst at Evercore ISI, in a note ahead of earnings. Investors would like to see Oracle management explain how they could adjust spending plans if demand from OpenAI changes, he added.

In the quarter, total revenue expanded 14% to $16.1 billion. The company’s cloud software application business rose 11% to $3.9 billion. This is the first quarter that Oracle’s cloud infrastructure unit generated more sales than the applications business.

Earnings, excluding some items, were $2.26 a share. The profit was helped by the sale of Oracle’s holdings in chipmaker Ampere Computing, the company said. That generated a pretax gain of $2.7 billion in the period. Ampere, which was backed early in its life by Oracle, was bought by Japan’s SoftBank Group Corp. in a transaction that closed last month.

In the current period, which ends in February, total revenue will increase 19% to 22%, while cloud sales will increase 40% to 44%, Kehring said on the call. Both forecasts were in line with analysts’ estimates.

Annual revenue will be $67 billion, affirming an outlook the company gave in October.



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Analyst sees Disney/OpenAI deal as a dividing line in entertainment history

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Disney’s expansive $1 billion licensing agreement with OpenAI is a sign Hollywood is serious about adapting entertainment to the age of artificial intelligence (AI), marking the start of what one Ark Invest analyst describes as a “pre‑ and post‑AI” era for entertainment content. The deal, which allows OpenAI’s Sora video model to use Disney characters and franchises, instantly turns a century of carefully guarded intellectual property (IP) into raw material for a new kind of crowd‑sourced, AI‑assisted creativity.​

Nicholas Grous, director of research for consumer internet and fintech at Ark Invest, told Fortune tools like Sora effectively recreate the “YouTube moment” for video production, handing professional‑grade creation capabilities to anyone with a prompt instead of a studio budget. In his view, that shift will flood the market with AI‑generated clips and series, making it far harder for any single new creator or franchise to break out than it was in the early social‑video era.​ His remarks echoed the analysis from Melissa Otto, head of research at S&P Global Visible Alpha, who recently told Fortune Netflix’s big move for Warner Bros.’ reveals the streaming giant is motivated by a need to deepen its war chest as it sees Google’s AI-video capabilities exploding with the onset of TPU chips.

As low‑cost synthetic video proliferates, Grous said he believes audiences will begin to mentally divide entertainment into “pre‑AI” and “post‑AI” categories, attaching a premium to work made largely by humans before generative tools became ubiquitous. “I think you’re going to have basically a split between pre-AI content and post-AI content,” adding that viewers will consider pre-AI content closer to “true art, that was made with just human ingenuity and creativity, not this AI slop, for lack of a better word.”

Disney’s IP as AI fuel

Within that framework, Grous argued Disney’s real advantage is not just Sora access, but the depth of its pre‑AI catalog across animation, live‑action films, and television. Iconic franchises like Star Wars, classic princess films and legacy animated characters become building blocks for a global experiment in AI‑assisted storytelling, with fans effectively test‑marketing new scenarios at scale.​

“I actually think, and this might be counterintuitive, that the pre-AI content that existed, the Harry Potter, the Star Wars, all of the content that we’ve grown up with … that actually becomes incrementally more valuable to the entertainment landscape,” Grous said. On the one hand, he said, there are deals like Disney and OpenAI’s where IP can become user-generated content, but on the other, IP represents a robust content pipeline for future shows, movies, and the like.

Grous sketched a feedback loop in which Disney can watch what AI‑generated character combinations or story setups resonate online, then selectively “pull up” the most promising concepts into professionally produced, higher‑budget projects for Disney+ or theatrical release. From Disney’s perspective, he added, “we didn’t know Cinderella walking down Broadway and interacting with these types of characters, whatever it may be, was something that our audience would be interested in.” The OpenAI deal is exciting because Disney can bring that content onto its streaming arm Disney+ and make it more premium. “We’re going to use our studio chops to build this into something that’s a bit more luxury than what just an individual can create.”

Grous agreed the emerging market for pre‑AI film and TV libraries is similar to what’s happened in the music business, where legacy catalogs from artists like Bruce Springsteen and Bob Dylan have fetched huge sums from buyers betting on long‑term streaming and licensing value.

The big Netflix-Warner deal

For streaming rivals, the Disney-OpenAI pact is a strategic warning shot. Grous argued the soaring price tags in the bidding war for Warner Bros. between Netflix and Paramount shows the importance of IP for the next phase of entertainment. “​I think the reason this bidding [for Warner Bros.] is approaching $100 billion-plus is the content library and the potential to do a Disney-OpenAI type of deal.” In other words, whoever controls Batman and the like will control the inevitable AI-generated versions of those characters, although “they could take a franchise like Harry Potter and then just create slop around it.”

Netflix has a great track record on monetizing libraries, Grous said, listing the example of how the defunct USA dramedy Suits surged in popularity once it landed on Netflix, proving extensive back catalogs can be revived and re‑monetized when matched with modern distribution.​

Grous cited Nintendo and Pokémon as examples of under‑monetized franchises that could see similar upside if their owners strike Sora‑style deals to bring characters more deeply into mobile and social environments.​ “That’s another company where you go, ‘Oh my god, the franchises they have, if they’re able to bring it into this new age that we’re all experiencing, this is a home-run opportunity.’”

In that environment, the Ark analyst suggests Disney’s OpenAI deal is less of a one‑off licensing win than an early template for how legacy media owners might survive and thrive in an AI‑saturated market. The companies with rich pre‑AI catalogs and a willingness to experiment with new tools, he argued, will be best positioned to stand out amid the “AI slop” and turn nostalgia‑laden IP into enduring, flexible assets for the post‑AI age.​

Underlying all of this is a broader battle for attention that spans far beyond traditional studios and shows how sectors between tech and entertainment are getting even blurrier than when the gatecrashers from Silicon Valley first piled into streaming. Grous notes Netflix itself has long framed its competition as everything from TikTok and Instagram to Fortnite and “sleep,” a mindset that fits naturally with the coming wave of AI‑generated video and interactive experiences.​ (In 2017, Netflix co-founder Reed Hastings famously said “sleep” was one of the company’s biggest competitors, as it was busy pioneering the binge-watch.)

Grous also sounded a warning for the age of post-AI content: The binge-watch won’t feel as good anymore, and there will be some kind of backlash. As critics such as The New York Times‘ James Poniewozik increasingly note, streaming shows don’t seem to be as re-watchable as even recent hits from the golden age of cable TV, such as Mad Men. Grous said he sees a future where the endangered movie theater makes a comeback. “People are going to want to go outside and meet or go to the theater. Like, we’re not just going to want to be fed AI slop for 16 hours a day.”

Editor’s note: the author worked for Netflix from June 2024 through July 2025.



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