Tech M&A 2025: How AI, Cloud & Regulation Reshaped Deals at HPE & Beyond

The top technology M&A deals in 2025 reflect a pronounced pivot toward AI-centric capabilities. Google’s acquisition of Wiz for $32B underscores cloud security as an integral pillar in enabling AI scale across multi-cloud environments. Similarly, HPE’s $13.4B acquisition of Juniper doubles its networking business, accelerating its push into AI-native, cloud-driven network infrastructure. These deals are not merely about acquiring IP; they’re also about acquiring endpoints—from security stack, data streaming, identity tools, to observability—that enable companies to own or more tightly control the flow and protection of data, which is increasingly mission-critical in the AI era. Sales of Informatica (data management), Confluent (real-time streaming), CyberArk (identity), and Chronosphere (observability) fit this mold.[0search9]

From a financial standpoint, these deals are dramatically reshaping revenue portfolios. HPE’s combined entity with Juniper is expected to see networking grow from ~18% to ~31% of total revenues and exceed 50% of total operating income. Such shifts are designed to improve margins and long-term growth, provided execution holds. Salesforce’s Informatica deal is meant to cement its trusted data foundation for AI services while offering recurring revenue through cloud subscription models.

Regulation has proven to be both a hurdle and a litmus test. The DOJ’s initial lawsuit against HPE–Juniper raised significant competitive concerns, especially given the market shares of Cisco and the dominance of the combined firm in networking. A settlement forced HPE to make concessions—divesting business lines and licensing source code. Meanwhile, the Google–Wiz deal, while cleared in the U.S., still requires EU approval expected in early 2026. These oversight pressures indicate antitrust risk is back in focus for big tech consolidation.

Execution risk emerges clearly. HPE’s revenue growth outlook for FY2026 was clarified amidst market turbulence; while pro-forma growth is strong, full-year reported growth will lag due to accounting for only partial contributions from Juniper. Margins in its networking and server segments have under pressure, driven by integration costs and aggressive pricing. Analysts broadly maintain cautious or neutral ratings, stressing that while the logical architecture of these acquisitions is compelling, realization of synergies and margin improvements remains a work in progress.

Strategic implications for competitors and partners are substantial. Vendors without strong AI-native networking or security platforms may find themselves squeezed or forced into defensive M&A. Channel and service provider ecosystems will need to adjust toward more integrated managed services around AI, observability, identity, and real-time data. Cloud providers, too, may face intensified competition from vertically integrated competitors who control more of the AI-stack from data to inference to security.

Open questions include: how fast integration will be completed without diluting margins; whether regulatory regimes in the U.S., EU, and beyond will converge or diverge in how they treat AI-era M&A; and how companies will balance investments in AI infrastructure, cloud services, and product R&D amid inflation and capital constraints.