Alphabet Faces 2.25% Australian Revenue Tax, Secures Pentagon AI Contract and Sovereign Cloud Deal
Australia plans a 2.25% levy on Google’s local revenue, potentially raising AUD 200–250 million annually if no deals with news outlets are struck. Meanwhile, Google advanced a classified Pentagon AI contract despite over 600 employee protests and inked a four-year NetApp agreement to deploy sovereign private clouds in air-gapped environments.
1. Australian Revenue Tax Plan
The Australian government has proposed a new News Bargaining Incentive requiring Google to pay a 2.25% levy on its local revenue if no commercial agreements are reached with news outlets. The measure could raise between AUD 200 million and AUD 250 million annually to compensate media organizations for content.
2. Pentagon AI Contract
Google has proceeded with a classified AI services contract for the Department of Defense despite objections from more than 600 employees. The internal campaign highlighted ethical and privacy concerns, but executive leadership affirmed its commitment to advancing national security applications.
3. Sovereign Cloud Deal with NetApp
Google Cloud secured a four-year agreement with NetApp to deliver sovereign private cloud solutions in air-gapped environments. This partnership aims to meet stringent data residency and security requirements for government and regulated customers, broadening Google Cloud’s enterprise offerings.