One Cloud Giant’s Bold AI Bet Is Paying Off

Author

Noah Zelvis
July 29, 2025

Cloud deals are expanding, guidance is moving higher, and enterprise tech spending hasn’t slowed down.

With big-money contracts flowing and next-gen AI baked into its growth story, one overlooked platform is quietly powering a digital transformation wave.

The setup heading into Q3 looks stronger than it seems.

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Generative AI

Photoshop Gets Smarter as Adobe Rolls Out Real-World AI Upgrades 

Adobe (NASDAQ: ADBE) is giving Photoshop a serious upgrade by embedding new Firefly AI tools across desktop, web, and iOS.

The latest features focus on practical fixes, helping designers and photo editors complete tedious work more efficiently.

Generative Upscale now enables users to enhance blurry or low-resolution images up to 8MP, making them suitable for printing or repurposing across various platforms.

The new Harmonize feature adjusts lighting, color, and shadow to help added objects blend seamlessly with the scene in which they’re placed.

The object removal tool has also been improved to avoid the background artifacts that plagued earlier versions.

Instead of blending in noise or distortions, it now prioritizes filling the space with relevant background elements.

Users also gain more control over their workflow, including the ability to select specific versions of the Firefly model tailored to their editing needs.

Team asset organization has been made easier as well, streamlining collaboration for designers.

This release reinforces Adobe’s push to keep creative pros loyal as generative design tools multiply. By building real utility into Photoshop, Adobe is betting that deep integration will beat standalone tools.

Adobe is targeting everyday workflows directly.

With Firefly AI integrated across platforms, Photoshop users now get faster edits, cleaner results, and fewer manual steps, exactly what matters when you’re on deadline.

Cloud AI

Microsoft Moves to Lock In OpenAI Tech for the Long Haul 

Microsoft (NASDAQ: MSFT) is negotiating a new agreement with OpenAI to ensure uninterrupted access to its AI models, regardless of the startup's future evolution.

The move comes as OpenAI seeks to restructure its capped-profit model and shift toward full commercial operations.

Microsoft has built core product lines around OpenAI's tech. Copilot tools in Office, Windows, and GitHub all rely on seamless access to ChatGPT models via Azure.

A break in that pipeline, if OpenAI achieves internal AI milestones and ceases sharing, would jeopardize years of platform integration.

Talks center on ensuring Microsoft's rights to deploy OpenAI technology beyond the current 2030 cutoff.

Rather than waiting for milestone-based triggers, the company is pushing for contractual continuity as part of a long-term enterprise AI roadmap.

The risk is real as Microsoft has invested $13.75 billion into OpenAI and deeply embedded its models into the Azure OpenAI Service.

Losing that link would undercut Microsoft's competitive position in the enterprise AI market, especially as rivals like Google and Amazon push their foundational models.

For enterprise buyers, Microsoft's effort signals one priority: platform stability. This is about keeping tools running, APIs available, and model access secure as AI ecosystems evolve.

The final deal will likely shape how Microsoft positions its AI stack for the rest of the decade.

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Mobility Tech

Lyft Sets 2026 Launch for Self-Driving Shuttles, Aiming at Transit Hubs 

Lyft (NASDAQ: LYFT) is introducing fully autonomous electric shuttles to its network starting in late 2026, marking a major step in the company’s long-term mobility strategy.

The new vehicles, designed by Austria’s Benteler Group under its Holon brand, will operate in select U.S. cities and airports as part of a rollout Lyft says could expand if successful.

The Holon shuttles are purpose-built for autonomy.

There’s no steering wheel or pedals, just a clean, open interior with inward-facing seats for nine passengers and standing room for six more.

The design leans into group transport, signaling Lyft’s shift toward shared, driverless mobility services that go beyond personal rides.

Unlike previous autonomy efforts that relied on third-party integrations, these shuttles are powered by Mobileye’s full-stack AV system.

That means core autonomy features, including perception, path planning, and safety layers, are built into the vehicle from the ground up.

Lyft has worked with Mobileye separately, but confirmed these shuttle deployments are under a different track.

Meanwhile, Lyft still plans to deploy vehicles from May Mobility in Atlanta later this year, as it keeps testing additional autonomous partners.

This shuttle launch represents the company’s first commitment to high-capacity, driverless vehicles designed specifically for urban transit applications.

For Lyft, the partnership reinforces a long-term bet on scalable autonomy that serves cities, not just individuals.

Holon’s design and Mobileye’s platform offer a plug-and-play option for city-integrated AV transport, a different route than the robotaxis flooding headlines.

Recent Tech Movers

ON Semiconductor (NASDAQ: ON) is flying under the radar as it heads into earnings next week, but this setup looks increasingly compelling.

Expectations are muted, as analysts project a 44 percent drop in EPS and a 16 percent decline in revenue, yet estimate revisions have quietly turned higher.

The stock now carries a bullish tone, and the firm's earnings surprise signal (ESP) is a positive 16.85%. That’s the kind of signal that’s historically preceded beats.

With shares trading near multi-month lows and sentiment depressed across the analog chip sector, even a modest upside surprise could reframe the outlook.

ON still plays a critical role in EVs, renewables, and power management systems, areas likely to recover ahead of consumer tech. If the company manages to beat and guide conservatively higher, it may be enough to ignite a rebound.

Tesla (NASDAQ: TSLA) just confirmed a $16.5 billion chip manufacturing agreement with Samsung, and it’s more than just a supplier deal.

Elon Musk posted on X that Samsung’s new Texas fab will be dedicated to Tesla’s next-gen AI6 chips, with Tesla actively involved in maximizing manufacturing efficiency. 

That’s a meaningful step in verticalizing Tesla’s AI stack, potentially boosting its capacity to scale FSD, energy systems, and robotics. The deal also signals a break from sole reliance on TSMC.

If successful, it could reduce bottlenecks, cut costs, and accelerate innovation cycles, which is exactly what Tesla needs as it works to reestablish leadership in the autonomous space.

Following a challenging year-to-date performance, this announcement provides investors with a new narrative to follow.

If upcoming events offer more detail on Dojo or the broader AI platform, this could mark a turning point for sentiment and valuation.

Alphabet (NASDAQ: GOOG) is quietly testing resistance after notching its best month of the year, and the drivers are clear.

Shares are up more than 10 percent in July, bolstered by strong AI engagement metrics and the announcement of a new $1.2 billion Google Cloud deal with ServiceNow.

The market views this as confirmation that Alphabet’s cloud arm is gaining ground in enterprise AI workflows, helping to diversify revenue beyond advertising.

Meanwhile, the rollout of AI Mode in Google Search, along with more interactive experiences, is helping the company defend its search moat amid competitive pressure from ChatGPT and Perplexity.

Management has highlighted the need for deeper user engagement and improved monetization, which is a critical focus heading into the second half.

Technically, GOOG is approaching overbought levels with softening volume, which could signal a short-term pause.

But if the cloud business continues to win deals and engagement trends hold, it’s hard to argue with the broader uptrend.

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Don’t Overlook This Tech Stock

ServiceNow (NYSE: NOW) just delivered one of the cleanest beats of the season and raised guidance, and investors are finally paying attention.

Q2 earnings came in at $4.09 per share, topping estimates by more than 14 percent, while revenue rose 22 percent to $3.22 billion.

Subscription revenue increased to $3.11 billion, surpassing forecasts, and current remaining performance obligations rose 25 percent to $10.92 billion.

The company now expects full-year subscription revenue to reach up to $12.795 billion.

But it’s not just the numbers. This report highlights how ServiceNow is becoming a central component of the enterprise AI stack.

CEO Bill McDermott said, “Every business process in every industry is being refactored for agentic AI,” and ServiceNow intends to power that shift with its platform.

The recent $2.85 billion acquisition of Moveworks, which adds a proprietary generative AI assistant to its offerings, only strengthens the story.

Investors are also paying attention to scale. The company closed 89 $1 million-plus net new contracts and now counts over 500 customers generating $5 million annually.

It’s becoming a core operating system for businesses adopting AI at scale.

Analysts moved quickly. Wells Fargo raised its price target to $1,225, and Citigroup followed with a target of $1,234.

That reflects a growing conviction that ServiceNow can maintain 20%+ revenue growth while expanding margins, which is a rare combination in software.

The stock surged more than 6 percent post-earnings and is now testing resistance around $1,020.

With momentum shifting and AI positioning improving, this may just be the beginning of a new leg higher.

Everything Else

That's our coverage for today; thanks for reading! Reply to this email with feedback or any tech stocks you want me to check out.

Best Regards,
—Noah Zelvis
Tech Stock Insider