Key Points
- HPE to buy Juniper for $14 billion to boost AI networking capabilities and compete in the global tech market.
- U.S. and UK regulators raised antitrust concerns, blocking the deal at first but later agreeing to allow it with strict conditions.
- New terms force HPE to divest Juniper’s Mist AI software code and sell part of its wireless business to protect competition.
The tech industry is buzzing over a landmark $14 billion merger between Hewlett Packard Enterprise (HPE) and Juniper Networks, a deal seen as a major shakeup in the fight for dominance in AI-driven networking. While HPE and Juniper claim the purchase will strengthen their ability to support advanced technologies like AI-native hardware and cloud-based services, regulatory bodies and customers are watching closely for fallout.
The deal was first announced on January 9, 2024, when HPE revealed plans to expand its network offerings using Juniper’s products. An expert from Greyhound Research, Sanchit Vir Gogia, noted that combining HPE’s Aruba Networks (a leader in campus and wireless solutions) with Juniper’s strengths in SD-WAN and AI could help HPE grow in a crowded market. These technologies are crucial for businesses relying on cloud systems and hybrid workplaces, often built alongside Microsoft’s Azure or Windows Server platforms.
But the merger hit roadblocks quickly. On June 28, 2024, the UK’s Competition and Markets Authority (CMA) opened an antitrust investigation, warning of potential competition risks in markets like wireless networking. Though HPE expected the probe to delay approval, European regulators gave the green light in July 2024. The European Commission said the deal wouldn’t harm data-center customers, but U.S. scrutiny persisted.
The U.S. Department of Justice (DOJ) filed a lawsuit in January 2025 to block the merger. In a fiery statement, the DOJ said the deal would “substantially lessen competition” in a critical tech sector, potentially stifling rivals and leaving customers with fewer choices. HPE and Juniper countered by vowing to “vigorously defend the transaction.” For businesses using HPE or Juniper products, the court fight meant uncertainty—for example, cloud managers feared disruptions in tech roadmaps tied to AI infrastructure, which often integrates with Microsoft’s ecosystem.
The turning point came on June 28, 2025, when the two companies agreed to a settlement with the DOJ. The deal now survives, but not without major concessions. The merged HPE-Juniper must divest HPE’s Instant On wireless business, which targets small and medium-scale companies, to “promote competition.” Additionally, they must license Juniper’s Mist AI source code under rules set by the DOJ. This software is vital for modern networks optimized for AI workloads, a space critical for next-gen data centers. These steps aim to satisfy regulators while allowing HPE to maintain control over Juniper’s AI tech, which aligns with broader industry trends like Microsoft’s Push into AI and Hybrid Cloud.
Customer reactions have been mixed. Many enterprises feared product lines would be cut to eliminate overlap between HPE and Juniper’s portfolios. Juniper’s 2024 updates—such as validating AI cluster designs and opening a lab for AI-centric infrastructure—had raised hopes for innovation, but deals like this often spark fears of streamlined or outdated features. For Windows Server and Azure users, access to Juniper’s AI tools through partnerships could open new opportunities for integrating smart networking with cloud systems. However, if HPE cuts Mist AI or related services, it could affect how seamlessly AI works with existing Microsoft solutions.
Regulatory hurdles in the UK also linger. Though HPE and Juniper had previously crossed CMA concerns off their list before the DOJ issue, the UK’s stance hasn’t been clarified. The European green light, while positive, showed that not every agency sees the merger as risky.
The final approval from U.S. courts is still pending, as the settlement needs a judge’s blessing. If approved, the deal would mark HPE’s second-largest acquisition ever, matching Microsoft’s aggressive expansion into AI and cloud services. For now, the tech world waits to see if the DOJ settlement and regulatory OKs will let the $14 billion deal proceed. But with antitrust conditions in place and Mist AI under new licensing rules, the stage is set for a new player in the high-stakes AI networking race.
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