Latest cybersecurity reporting from selected sources.

Renegotiated Pact With Microsoft Clears OpenAI Path to Enterprise CloudsOpenAI has launched its models and tools on Amazon Web Services, one day after revising its agreement with Microsoft to end years of cloud exclusivity, a move likely driven by competitive pressure from Anthropic's hold on enterprise AWS customers.

Hijacking DNS Settings Helps Russian Hackers Decrypt TLS Traffic, Microsoft WarnsHackers tied to Russia's GRU military intelligence agency are compromising SOHO routers to hijack their DNS settings and spy on the cloud activities of high-value government, IT, telecommunications and energy organizations, Microsoft warns.

FBI Accessed Encrypted Windows Devices Via BitLocker Keys, Microsoft SaysMicrosoft confirmed it handed over BitLocker recovery keys to the FBI in 2025 under court order, raising concerns over cloud-stored encryption keys and whether default designs that prioritize recovery convenience and efficiency weaken user control and security.

Europe Tries, Tries Again Amid Transatlantic UncertaintyEuropean cloud users love hyperscalers - but they’re all American. Microsoft, Google and Amazon Web Services together hold 70% of the European market, with local providers mustering a mere 15% collectively. That landscape could soon change in the face of geopolitical reality.

Closed AI Loops Are Concentrating Power - and Creating Room for StartupsMicrosoft, Nvidia and Anthropic just formed the latest closed-loop artificial intelligence partnership, tying cloud, hardware and models into a single circuit. While it signals consolidation at the top, founders say it's also creating a surprising tailwind for domain-focused AI startups.

Azure Outage Comes a Week After a Cloud DNS Error Disrupted AWS UsersMicrosoft's Azure cloud and 365 systems suffered an outage at noon on Wednesday because of a configuration error - hours before its quarterly earnings call and about a week after rival AWS underwent a widespread outage that shut down applications and services for most of the day.

Also: Software Supply Chain Risks, Cato's AI Security BuyIn this week's update, four ISMG editors discussed the Pentagon's review of Microsoft's use of Chinese nationals on U.S. military cloud systems, renewed concerns over software supply chain risks and Cato Networks' first-ever acquisition to boost AI security.

Series A Fuels Deeper AI, Expanded Integrations and Product-Led Growth AdoptionBacked by S32 and Microsoft, Sola Security secured $35 million to advance its autonomous AI engine. The Israeli startup aims to shift from reactive prompts to proactive agent-based systems that solve security tasks across SaaS, cloud and identity domains.

Defense Department Suspends, Reviews Microsoft 'Digital Escorts' ProgramThe Pentagon is reviewing Microsoft's decade-long use of "digital escorts" - U.S.-based staff who review code from Chinese engineers - into military cloud systems, a workaround now deemed a "breach of trust" that may have exposed sensitive but unclassified government data.

Financially Motivated Actor Storm-0501 Systematically Probed Victim EnvironmentsAs enterprises go with hybrid cloud developments, so follow hackers, even if it means jumping through extra hoops to get to where the data is stored. Microsoft on Wednesday said it spotted a financially-motivated hacking group probing a hybrid on-premise.

CISA Issues Emergency Directive Requiring Federal Agencies to Fix FlawA vulnerability in Exchange hybrid deployments could allow attackers to escalate privileges and gain administrative access to cloud-based environments. Microsoft said Tuesday there is no evidence of its exploitation and "strongly" recommended installing hot fix updates made available in April.

Hackers Can Use Unverified Email to Log onto SaaS Apps With Entra IDA flaw in a Microsoft single sign-on feature allowing cloud app account takeovers discovered in 2023 never really went away, say researchers - notwithstanding a computing giant claim that it almost immediately fixed the vulnerability known as nOAuth.

Hackers Use TeamFiltration Penetration Testing ToolA threat actor is using the password spraying feature of the TeamFiltration pentesting tool to launch attacks against Microsoft Entra accounts - and finding success. The threat actor has targeted more than 80,000 user accounts across roughly 100 cloud tenants.

CISA Advisory Says Threat Actors Stole App Secrets in Azure-Hosted Backup PlatformA suspected Chinese state hacking group linked to last year’s telecom intrusions breached Commvault’s Microsoft Azure environment, exposing sensitive Microsoft 365 credentials and reigniting fears over U.S. cloud infrastructure vulnerabilities and default security settings.

EVP Muhi Majzoub Outlines Integration of TDR, Generative AI Across Core PlatformsOpenText is embedding threat detection, identity protection and generative AI across its cloud and on premise platforms. EVP Muhi Majzoub says the threat detection and response system will integrate with Microsoft Defender, CrowdStrike and others to identify anomalies and stop attacks in real time.

Also, Oracle Denies Cloud Breach, Blames Hack on Obsolete ServersThis week, Port of Seattle notified victims, Oracle blamed hack on obsolete servers, Google and Microsoft released April patches, WK Kellogg breached, six arrested in Spain for AI-investment scam, Scattered Spider's "King Bob" pleaded guilty, SmokeLoader users busted.

Google Aims to Match Microsoft Defender With $32B Buy of Wiz's Cloud Security TechGoogle's plan to buy cloud security firm Wiz for $32 billion highlights its drive to compete with Microsoft Defender and expand multi-cloud protection, and will put pressure on AWS to respond. Forrester Analyst Andras Cser says Wiz will likely remain independent for now, easing integration hurdles.

Largest Cybersecurity Deal of All-Time Aims to Boost AI-Driven Multicloud SolutionsGoogle Cloud plans to acquire cloud security leader Wiz for $32 billion, integrating its AI-powered security capabilities to better protect companies across multiple cloud environments. The deal reinforces protections across multicloud environments, including AWS, Microsoft Azure, and Google Cloud.

Microsoft Sees Cyberespionage Group Lifting API Keys and Credentials for CustomersA prolific cyberespionage group tied to Beijing appears to have increased its targeting of widely used IT tools and service providers. Microsoft said the group's tactics now include stealing API keys and credentials from providers to gain access to providers' downstream customers' infrastructure.

Computing Giant Warns Against Future Decryption of Secure CommunicationsGoogle adopted quantum-safe digital signatures for its cloud environment designed to help users combat the next phase of adversarial attacks. The announcement from the company comes days after Microsoft unveiled its latest quantum chip. NIST formalized the algorithms in August 2024.