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Texas was the new epicenter of the AI data center buildout. That might be kaput.

Texas is the fastest-growing data center market in the US and ground zero for Big Tech’s largest AI buildouts. But the blue wave that swept the Lone Star State may jeopardize that position. Democrat James Talarico won the US Senate seat against Ken Paxton. Gina Hinojosa won the race for governor against the Republican incumbent, Greg Abbott. At the state level, Democrats will take control of the Texas House for the first time in 24 years. Talarico and Hinojosa made data centers a central issue, discussing them constantly on the campaign trail. Even before the polls closed, insiders in the data center industry noticed that the times were changing. At the industry’s DCD conference in Ashburn, Virginia, on Tuesday, panelists lamented that Texas had been the easiest place to build for years—until September. That’s when Abbott, perhaps seeing the increasingly bipartisan distaste for these facilities, began changing course himself.  Developers said the governor’s office had stopped responding to their emails. On September 21, Abbott directed a key state regulator to halt data center permits. Many panelists at the conference were expecting this to mean that existing projects might be slowed and new ones could be halted altogether.  The governor-elect indeed seems eager to do that. Hinojosa supported tax breaks for data centers in 2023 as a way to boost construction jobs, but during her campaign she began pushing for a full-fledged moratorium. That would be a problem for the hyperscalers of Big Tech, which have ambitious plans for AI training facilities in the state. The scale of projects already underway in Texas is massive. The Stargate Frontier data center in Shackelford County is projected to serve 1,820 megawatts—about as much as the nation’s largest data center, SpaceX’s Colossus 2 in Tennessee, and more than twice as much as the largest data center currently operating in Texas. Nexus Hubbard, also under construction and intended mostly to serve Anthropic, has a planned size of 6,400 megawatts and is the second-largest data center being built in the US, behind only Meta’s Hyperion project in Louisiana.  The potential for Democrats to order delays to these projects or moratoriums on new ones adds to growing anxiety that the AI buildout could stall. Banks and lenders are already getting pickier about the projects they back. And given the extent to which the data center buildout is underpinning growth in the economy right now, those forces combined could have ripple effects. Voters around the country, though, were unambiguous in the midterms, sending a similar message on everything from state ballot questions to national offices. Voters supported efforts to protect ratepayers from increases in their electricity bills caused by data centers, and they favored some larger bans on new data centers altogether. If we needed any more convincing that Big Tech has fumbled its effort to sell voters on the idea that AI-powered abundance will make health care better, goods cheaper, and scientific breakthroughs more common, this was it. A key question is whether the Texas counties with the largest data center presence were part of the reason these Democrats got elected, or if the anti-data-center vote came from elsewhere.  It’s complicated: The counties where much of the data center buildout is happening are around Dallas. Dallas County and others closest to it predictably went blue, but nearby Ellis County, which leads in permitting requests for data centers, went for Greg Abbott and Ken Paxton. Cameron County, near the state’s southern border, is a hot spot for data centers and voted blue in the midterms, which was a shift. But Mitchell County and Scurry County, where a bunch of projects in west Texas are located, went red.  This is a big deal, because no single office in the state decides whether a project goes ahead or is halted. Decisions often reflect an interplay between city governments, county officials, and state offices.  Local officials who have some say over data center development may resist sweeping restrictions from the state. And Democrats pushing for a moratorium might also face pushback from the construction unions that supported some of their campaigns. So while the blue wave spells a death knell for Texas data centers in theory, election winners may find that following through on their opposition once in office is much more complicated than campaigning on it.

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AI, Committee, News, Uncategorized

Here’s who is falling in line for Trump’s “Super Intelligence” loyalty test

This story originally appeared in The Algorithm, our weekly newsletter on AI. To get stories like this in your inbox first, sign up here. At the end of September, President Trump signed an executive order that contained just one directive, ordering government agencies to rebrand what they had been calling artificial intelligence as “Super Intelligence.” That term beat out other contenders, including “Extreme Intelligence” and “Supreme Intelligence,” offered by the president in a poll on X a couple of weeks earlier.  Rebrands are, of course, now a White House tradition: Trump has changed names to project US dominance of certain bodies of water (the Gulf of America and Lake America), to signal new institutional priorities (Department of War), or simply to leave his mark on storied places (see the ongoing fight over renaming the Kennedy Center).  The stated reason for this name change is that today’s AI systems “amplify human ingenuity” rather than merely “imitate” intelligence, and the government’s terminology should reflect that. But if this rebrand follows the pattern of others, its effects will extend beyond government.  It will turn a choice of words into a political loyalty test: Those who use the new term demonstrate allegiance to the administration, and those who don’t become marks for attacks (recall that the Trump administration barred the Associated Press from some White House press events after the news outlet did not adopt the term “Gulf of America”).  But most Americans go months without ever pondering what to call the major lake between New York and Canada. AI, on the other hand, is at the center of our national conversation and a technology two-thirds of Americans report interacting with multiple times a week. It might be the boldest rebrand yet.  So one month in, who’s on board? Let’s start with the government itself. The term “Super Intelligence”—or simply “SI”—now appears more often on government solicitations, like a new request by Immigration and Customs Enforcement for companies to build “SI-powered” surveillance for ICE detention facilities. The new term has been swapped in silently on most government websites. Some, including that of the National Institutes of Health, now include a banner warning visitors they might see both the new and the old terms during the transition period. There have been hiccups. A day after the rebrand order, the Pentagon announced an ambitious new initiative to study the future of warfare, called Project Meridian; it used the old terminology. A Federal Trade Commission press release last week used “superintelligence” instead of the two-word, capitalized version ordered by the president, and recent press releases from Health and Human Services show no sign of the new language.  The term “AI” will likely stick around given the countless AI-related offices, initiatives, and programs that have sprung up in recent years, like the Chief Digital and Artificial Intelligence Office at the Pentagon (the executive order says it doesn’t apply to previously issued regulations or documents). As for government employees, it appears to be taking time for “SI” rather than “AI” to roll off the tongue. One researcher at a national lab I interviewed a few weeks ago used “AI” repeatedly before sheepishly acknowledging the slip-up. Even Defense Secretary Pete Hegseth used “AI” in an interview on October 3.  But Trump’s other rebrands suggest the goal isn’t merely to change the government’s vocabulary. It’s to change how the rest of us speak, too. In the past couple of weeks, most of President Trump’s posts on Truth Social have been endorsements for candidates in the midterms. But on October 27 he took a break from electioneering to criticize the Wall Street Journal for not using “Super Intelligence,” “the name which virtually everyone else is using, or soon will be.” He suggested that a new rule will soon go further than the executive order to outright ban “artificial intelligence” from government documents.  But the Wall Street Journal is not alone: Even Newsmax, an outlet whose founder described it as “supportive of the President and his policies,” isn’t using the president’s preferred term.   Are Big Tech executives falling in line? It’s complicated. The same day that President Trump signed the rebranding order, he also released a nonbinding statement on AI safety, the White House Accord on Super Intelligence, signed by six of the most powerful people in tech: Sundar Pichai of Google, Dario Amodei of Anthropic, Mark Zuckerberg of Meta, Greg Brockman of OpenAI, Elon Musk of xAI, and Jensen Huang of Nvidia. But even among this group—three members of which attended Trump’s inauguration—the term has not caught on.  In an analysis of third-quarter earnings calls, CNBC reported that only Zuckerberg and Musk used the term consistently. But Zuckerberg doesn’t quite count: Meta has been saying “superintelligence” since last year anyway. Musk’s companies seem to use the term the most—and he even pledged to rename SpaceXAI to SpaceXSI. Musk himself still mixes SI and AI when posting on X.  Executives from Amazon, Microsoft, and Alphabet used “AI” in their calls, though Microsoft’s recent letter to shareholders referred to the “Super Intelligence era.” Huang has referenced the term but still uses AI too. One objection to this rebranding project is that it will cost time and taxpayer dollars. It is Salesforce CEO Marc Benioff’s prerogative to decide that SIForce is a better name than AIForce and direct his company to implement that change. But government employees are now spending time writing guides on how departments should navigate the rebrand. And, per the executive order, leaders of federal agencies will be required to put their heads together to draft a new legislative definition of “Super Intelligence” to be run by the president by the end of this month.  But I’m more worried about what this does to our national conversation about AI than I am about the potential waste of time and money. Surprisingly often I overhear strangers at a grocery store or coffee shop who have struck up a conversation about AI. The substance of the conversation is rarely uplifting—they most often talk about

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AI, Committee, News, Uncategorized

How “reverse game theory” could keep AI agents in check

A new approach known as “reverse game theory” aims to control powerful AI models by designing systems that incentivize them to stick to the rules. As AI models become more capable, safety researchers are scrambling to ensure they are “aligned” with human desires—to make sure, in other words, that rogue agents don’t break the law, hack into unauthorized servers, or release poison gas into major cities and kill us all. Until now, this work has mostly focused on trying to peer into an AI’s “brain” to understand what it is “thinking,” or training models to hew to values that we hold dear. Claude, for instance, has its constitution—a sort of moral code. The trouble is, these techniques don’t seem to work particularly well: Models have been shown to deliberately underperform on tests, hide their intentions, and mislead their evaluators.  Now some alignment researchers believe that reverse game theory, also known as mechanism design, might get better results. Where game theory tries to predict how rational actors will behave when given a particular set of rules, reverse game theory attempts to design rules that will elicit the kinds of behavior we want to encourage. An example of mechanism design in the real world might be the classic strategy for splitting a piece of cake in two: One person cuts the cake and the other gets the first choice of pieces. This incentivizes the cutter to make the pieces as even as possible. Other examples include surge pricing in ride-hailing apps, which encourages drivers to be available at busy times, and second-price auctions, where the winning bidder pays the price of the second-highest bid instead of the highest. Platforms use these auctions to sell online advertising because they encourage buyers to bid close to the maximum they are willing to pay. In AI, mechanism design starts from the premise that we may never be able to understand enough about the internal workings of frontier models to make sure they are aligned. This means we should design mechanisms that incentivize agents to behave in ways that we want, regardless of what’s actually going on under the hood.  A recent preprint paper by Stephen Morris, an economist at MIT, along with colleagues from Yale and Columbia suggested some potential mechanisms that could stop agents from “sandbagging” tests (pretending to be worse than they actually are—for example, to avoid triggering safety mechanisms).  Instead of being rewarded only for how well it does on a test, a model could be rewarded for how well its answers predict what a second model will say. Deliberately playing dumb becomes a losing bet. “AI agents have a very good understanding of what other AI agents can achieve,” Morris says. “So it does seem like a context where this cross-checking could work more practically.  The paper also suggests pitting agents against each other, creating a competitive dynamic that incentivizes them to perform their best, or pairing agents that are known to be biased in opposite directions and rewarding them depending on how closely their outputs match, thus incentivizing them to reach an optimal answer.  A second approach, as envisioned by Elad Hazan, a professor of computer science at Princeton, is to design mechanisms that take inspiration from the ways human society keeps people “aligned”: social norms, the justice system, the monetary incentives of free-market capitalism. “We want to align superintelligent AI,” he says. “Why don’t we first talk about humans? How do we align humans?” Hazan’s suggested mechanism involves having AI models take turns as either “solvers” that tackle problems or “auditors” that check the others’ work. “One agent acts like law enforcement; the other agent acts like the citizen,” he says.  During training, the models are rewarded depending on outcomes: Solvers that get caught cheating are punished, but so are auditors that fail to catch the cheaters. In situations where there’s a disagreement between auditors and solvers, the case can be sent to “trial”—perhaps a human expert will decide who is right.  There is, Hazan admits, a risk that agents will collude with each other—as auditors have colluded with the businesses they’re meant to be auditing, or corrupt police officers have colluded with criminals. But that problem can be solved by rewarding the auditors well enough, so that being caught isn’t worth the risk (a lot easier in the world of AI training than the real one, where money for police salaries is tight), and by auditing the auditors using techniques akin to employing mystery shoppers.  Hazan points to Nobel Prize–winning work by the economist Gary Becker, who introduced the idea of the “rational offender” in the 1960s. Criminals don’t break the law because they’re inherently bad people, he said. Instead, they do it when it’s the most rational choice given the incentives on offer. Crime makes sense only when the proceeds outweigh the potential punishment.  Alignment shouldn’t be thought of as a property of a model, he argues, but as a descriptor of its behavior at a particular moment. “You are, like, a nice person,” he says. “Are you aligned? I don’t know. Probably you are aligned most of the time, but there could be a situation where you’re not.” One potential issue with applying mechanism design to AI: It relies on the assumption that AI agents behave rationally. Mechanism design has a mixed record with humans, who often fail to behave the way economic models say they should.  It’s ironic: Economists have spent decades trying to reduce human behavior to mathematics, and now, in large language models, we’ve built mathematical systems that run on human language and could be just as inscrutable. AI models exhibit behaviors that seem more human than machine, and they can be swayed by subtle factors that are difficult to understand and explain. “Is it even reasonable to assume that they will respond to incentives?” asks Helen Qu, a research fellow at the Flatiron Institute, a nonprofit dedicated to advancing scientific discovery through computational methods, who has written about mechanism design and

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AI, Committee, News, Uncategorized

The Download: controlling AI agents and “Super Intelligence” loyalty tests

This is today’s edition of The Download, our weekday newsletter that provides a daily dose of what’s going on in the world of technology. How “reverse game theory” could keep AI agents in check A new approach known as “reverse game theory” aims to control powerful AI models by designing systems that incentivize them to stick to the rules. While game theory predicts how rational actors behave under particular rules, reverse game theory designs rules to elicit the behavior we want. Think of splitting a cake: if one person cuts it and the other gets first choice, the cutter has an incentive to make the portions equal. Researchers believe the approach could align AI more closely with our rules and instructions. But big questions remain about whether these mechanisms will work in practice. Here’s how reverse game theory could help make AI agents behave. —Amit Katwala Here’s who is falling in line for Trump’s “Super Intelligence” loyalty test At the end of September, President Trump signed an executive order with just one directive: government agencies must rebrand artificial intelligence as “Super Intelligence.” One month on, the rebrand is slowly appearing across government websites and documents, but it hasn’t caught on with everyone. Even some of the biggest names in tech still use “AI.” But the bigger concern is the new term becoming a political loyalty test: Those who use it signal allegiance to the administration. Those who don’t become targets for attacks. So one month in, who’s on board? —James O’Donnell This story is from The Algorithm, our weekly AI newsletter. Sign up to receive it in your inbox every Monday. The must-reads I’ve combed the internet to find you today’s most fun/important/scary/fascinating stories about technology. 1 Today’s midterms will test AI’s influence on US politicsCandidates are betting that AI regulation will sway voters to their side. (Axios)+ Angry constituents could derail Elon Musk’s Republican bets. (BI)+ Tech investors are on edge about the results. (Reuters $)+ America is divided over AI regulation. (MIT Technology Review) 2 Nvidia is ordering data centre clients to limit their business with China It told providers that the majority of their sales must be non-Chinese. (FT $)+ The move follows pressure from Washington. (Bloomberg $)+ Chinese AI has ruptured the White House. (MIT Technology Review) 3 Hackers have turned supermarket fridges into a food security riskAttacks in Europe have put US supermarket systems on alert. (CNBC)+ They’ve also sparked concerns over other domestic appliances.(BBC)+ It’s a good time for doing crime. (MIT Technology Review) 4 Scientists have detected signals at the smallest scale ever exploredThe discovery offers clues to a world of exotic new particles. (BBC)+ It came via CERN’s Large Hadron Collider. (The Times $) 5 Zapping part of the brain makes you think harder—at a costIt can both improve performance and reduce motivation. (New Scientist $)+ Neuropixels probes are transforming how we study the brain. (Nature) 6 Big tech is splurging on mega gas plants to power data centersThe projectsthreaten to reverse years of climate pledges. (WP $) 7 Google says an Android partner infected 1.3 million devicesThe malware infected TV boxes and other Android-based devices. (Verge) 8 Apple is trying to create its first robotIt’s proving a lot harder than expected, though. (Information $)+ AI robots are still a long way from useful. (MIT Technology Review) 9 China’s biggest shopping festival has a new product to sell: AIAI tokens have become a major new Singles’ Day category. (Reuters $) 10 A meteorite in the Sahara has revealed new clues about MarsIts chemistry may help explain how the planet lost its water. (Wired $) Quote of the day “Don’t spend money unduly by asking a human expert to enter into a debate with a robot expert.” —Steven Benmor, a family lawyer, tells the Wall Street Journal that clients increasingly need to pay human experts to correct advice they’ve received from chatbots. One more thing The noise we make is hurting animals. Can we learn to shut up? As human society has expanded, animals have started struggling to hear one another. For many birds, the noise has grown so loud that they’ve begun to sing with faster trills. Now, their mating calls aren’t as effective.  The growing hubbub can also increase bird-on-bird conflict, and entire species that can’t handle urban clamor simply leave town for good. But there are technological solutions to the noises hurting animals—and they could help humans, too. Read the full story. —Clive Thompson We can still have nice things A place for comfort, fun, and distraction to brighten up your day. (Got any ideas? Drop me a line.) + Watch five newborn cheetah cubs grow up on the Smithsonian’s livestream.+ Fifty years after Songs in the Key of Life, Stevie Wonder has released four lost tracks from the album.+ 50 air guitarists shredded absolutely nothing at the 30th Air Guitar World Championships in Finland.+ The Ocean Photographer of the Year winners show both the beauty of marine life and the perils it faces.

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AI, Committee, News, Uncategorized

The agentic web is here

In 2001, a decade after he invented the World Wide Web, Tim Berners-Lee articulated a new vision. Together with two colleagues, he published an article in the magazine Scientific American in which he outlined what he called the “Semantic Web”: an internet designed to be navigated by autonomous software agents that could address our every need, without requiring us to muck about with browsers and search engines ourselves. To illustrate what this might look like, Berners-Lee and his colleagues told a story about a pair of siblings who use their agents to automatically research and book physical therapy appointments for their mother, making sure they would be covered by insurance and fit their busy calendars.  At the turn of the millennium, this vision seemed far-fetched: Google had only been online for a couple of years, and most people were still on dial-up connections. But a quarter-century on, the dream of autonomous software agents that use the internet and carry out tasks for us has finally been realized. New tools such as Meta’s blockbuster Muse agent, OpenAI’s Dots, and Anthropic’s Claude Duet are being given access to people’s email inboxes and bank accounts,  Meanwhile, in a series of worrying incidents, agents created by OpenAI broke free of their sandboxes and caused havoc online.   Just as the rise of smartphones sparked the development of a more atomized and attention-grabbing internet, the advent of powerful AI systems heralds a new era: We’re facing not the semantic web but the agentic web. This new web is developing out of sight and in ways that might not be entirely within our control. As it grows, the agentic web will inevitably transform the human web—and whether the human web survives this transition is anyone’s guess. For Berners-Lee’s original vision to work, internet users would have had to annotate the pages they built with special tags so that a software agent could understand each element’s meaning—say, “street address” for the part of a physical therapy office’s web page that indicates its location and “appointment types” for the list of services. And so the idea never really caught on. “It’s a lot of labor,” says Eni Mustafaraj, a professor of computer science at Wellesley College. “And the benefits of that were not obvious.” For the next two decades, then, the internet remained a place that put humans first, with the odd Twitter reply bot or web scraper to round things out. Large language models changed that. Unlike the agents that Berners-Lee was imagining, today’s LLM-based agents don’t need any tags to understand which part of the text on a clinic’s site is its address and which details the services it offers. They can search for and process text far faster than any human, and agents with multimodal capabilities can even interpret screenshots of websites and click on specific elements such as hyperlinks and drop-down menus.  They’re also just a way more intuitive means of finding information and accomplishing tasks online. Rather than poring over pages of Google results to find a budget-friendly product dupe or a half-remembered meme, why not have Claude or ChatGPT peruse dozens of sites in just a few minutes, guided only by your vague query? Or go one step further and use a personal assistant agent like Muse to hunt down a restaurant reservation or book a flight.  As agents flood online spaces, this new user base is changing the web for good. Time magazine, for instance, is publishing versions of its articles that are easier for agents to parse and has started selling ads targeted at them. Companies from Etsy to Expedia have partnered with the major AI firms to build tools that allow agents to interface seamlessly with their services. Despite these early efforts, it’s still tough to tell exactly what forms the agentic web will take and how it will change our online experience. Depending on how it’s designed and who controls access to it, we could be in for something that’s as open and customizable as the web of the early 2000s, only far easier to use. Alternatively, we could be reduced to viewing much of the web through tiny portholes controlled by a few dominant platforms, as independent sites and creators struggle to survive the shift. And as this summer’s series of OpenAI security incidents suggests, the agents might even build their own online networks and resources—whether we want them to or not. How this plays out also depends on us: which parts of our online lives we’re happy to delegate to our agents and where we will still demand a human-centric internet. “There’s a lot we don’t know yet about how users want to use [agents],” says Ajit Varma, head of Firefox at Mozilla. But whatever does happen, the changes will be big. “It’s probably on par with getting a mobile phone,” he says. “I think things are going to change very dramatically.” Building a web for agents There are two ways to approach building the agentic web. The first involves training agents to use browsers like humans—scrolling, clicking, typing—and letting them loose on the web that we’re all used to. The second requires building tools that allow agents to interface with the internet via text and code, their preferred media. That possibility offers more separation between the human and the agentic web: designers can create different experiences for those who use text commands and those who use browsers. When Siva Reddy, a professor of computer science and linguistics at McGill University, began studying LLM agents in 2024, he focused on the first option. “At that time, we thought it should be that the best agent in the world is probably an agent that can use a browser,” he says. Such an agent would integrate seamlessly with the preexisting human web, and its owner could easily supervise it by watching as it navigated familiar interfaces. The frontier AI companies were already developing these “computer-use agents.” But they didn’t work terribly well—at least not at first. “There’s a lot

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AI, Committee, News, Uncategorized

The Download: the agentic web arrives and the drive for safer roads

This is today’s edition of The Download, our weekday newsletter that provides a daily dose of what’s going on in the world of technology. The agentic web is here In 2001, a decade after inventing the World Wide Web, Tim Berners-Lee articulated a new vision: an internet navigated by autonomous software agents that address our every need, without requiring us to muck about with browsers and search engines ourselves. At the time, the idea seemed far-fetched. But a quarter-century on, AI agents are beginning to make it a reality. They can triage your inbox, do your grocery shopping, and even access your bank accounts. This new era is being called the agentic web. It will inevitably transform the internet—and whether the human web survives this transition is anyone’s guess. Find out how AI agents are transforming the internet, and what we stand to lose in the process. —Grace Huckins Are we there yet? Eliminating traffic deaths Every year, traffic crashes kill more than 1 million people worldwide. They’re also the leading cause of death for children and young adults. Cheap, proven ways to make roads safer exist, including tightening intersections with planters and lowering speed limits. But government logjams and red tape can make it difficult to roll out these changes. Still, some cities are making impressive progress by investing in public transit, extending curbs, and using cameras to spot danger zones in need of a redesign. Here’s how close we are to eradicating traffic deaths. —Sara Kiley Watson This story is the final part of “Are we there yet?”, our series that takes stock of six technologies that have long promised to change the world—and scores them on a progress meter. Subscribe to read the other five instalments in our new Impossible issue. The must-reads I’ve combed the internet to find you today’s most fun/important/scary/fascinating stories about technology. 1 A $1 trillion tech selloff has deepened fears of an AI bubbleBig AI bills and weak earnings have spooked investors. (BBC)+ The Nasdaq 100 had its worst day since June on Friday. (NBC News)+ OpenAI has cut its funding target by $10 billion. (CNBC)+ What even is the AI bubble? (MIT Technology Review) 2 Hackers have hit Ukraine and Russia’s emergency alert appsKyiv residents were warned of “nuclear danger.” (NBC News)+ Russia’s app said nuclear warheads had been launched. (CNN)+ Ukraine has blamed Russia, which hasn’t yet accused anyone. (BI)+ AI will transform cyber warfare. (MIT Technology Review) 3 Binance users withdrew $3.6 billion after the largest ever crypto hackThe funds moved when the exchange reopened on Sunday. (Guardian)+ Binance says it’s covered $6 billion of the stolen $6.3 billion. (Reuters $)+ But the industry’s response has undermined its “decentralized” image. (Gizmodo) 4 An AI agent injected drugs into a live mouse’s brainIt chose the gene therapy and controlled the needle itself. (Wired $)+ We need real-time tracking of AI agents. (MIT Technology Review) 5 Data centres have made utilities a flashpoint in the midtermsAmericans are angry over rising electricity bills. (Reuters $)+ Virtual power plants could help. (MIT Technology Review) 6 Apple has overtaken Nvidia as the world’s most valuable companyInvestors are favouring its restraint on AI spending. (Bloomberg $)+ But critics say it’s entering its “slop era.” (404 Media) 7 Supermarket fridges have overheated in a new wave of cyberattacksStores in Belgium, Sweden, and Luxembourg were hit. (Politico) 8 The first chocolate bars made from lab-grown cocoa are hereStartups are cultivating chocolate to tackle a cocoa shortage. (WSJ $) 9 Hackers hijacked digital billboards in multiple countries to show pornThey also criticized security flaws and Egypt’s government.(Gizmodo) 10 A new 3D map reveals instability in interstellar spaceThe discovery could help explain why stars form so inefficiently. (Quanta) Quote of the day “It would be great if all this was just a house of cards.” —Kevin Roose, a technology columnist at the New York Times, tells NPR that an AI investment crash would be preferable to the technology permanently upending work and society. One more thing Useful quantum computing is inevitable—and increasingly imminent Last year, Nvidia CEO Jensen Huang jolted the stock market by saying that practical quantum computing is still 15 to 30 years away. He also suggested that those computers would need Nvidia GPUs to function. But Huang’s predictions miss the mark—both on the timeline and the role his company’s technology will play.  Quantum computing is rapidly converging on utility. And that’s good news, because the hope is that they will be able to perform calculations that no amount of AI or classical computation could ever achieve. Read the full story. —Peter Barrett We can still have nice things A place for comfort, fun, and distraction to brighten up your day. (Got any ideas? Drop me a line.) + A miniaturist has built a delightful diorama of the world’s creepiest living room.+ The year’s best dog photos have been announced, and they’re very good boys and girls.+ At the Green Zone golf club, you tee off in Sweden and putt in Finland, an hour in the future.+ Astronomers say they’ve found the real celestial arrangement that inspired van Gogh’s The Starry Night.

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AI, Committee, News, Uncategorized

Stop counting tokens, start counting what ships

When a developer gives an AI agent a coding task, the agent does more than answer once. It plans, generates code, runs tests, and repeats the process to correct errors. A single task can use 10 to 50 times more tokens than a basic chat prompt. The more useful the agent becomes, the more calls it makes. With per-token pricing, the workflows creating the most value can also become the most expensive. The financial pressure is already visible. Uber reportedly exhausted its entire 2026 AI budget by April after expanding its use of Claude Code. GitHub Copilot moved from flat-rate pricing to metered credits. Gartner predicts that AI coding token costs will surpass average developer salaries by 2028. The natural response is rationing usage caps, seat limits, and approvals before developers launch agents. But blanket limits can restrict the workflows delivering value. They also optimize the wrong number. Cost per token measures consumption, not results. Some spending reflects waste, including retries and runaway loops. Some represents the work of shipping software. A meter cannot distinguish them, and neither can a spending cap. Measure the software that ships A better measure is cost per merged pull request: total AI-assisted development cost divided by the number of changes that pass review and are merged. Track rework and defects alongside it so cheaper changes do not conceal lower quality. If that cost falls as AI usage rises, without compromising quality, developers are converting more consumption into useful software. The question is not how many tokens they use, but how much finished work the investment produces. Improving that equation requires two changes: reserve expensive inference for tasks that need it, and lower the cost of routine work. Match the model to the task Agentic coding does not require the most powerful model at every step. Use a frontier model, or an on-premises flagship when policy requires it, for difficult planning and novel reasoning. Route suitable work, including code generation, test creation, and repeated refactoring, to open-weight models you operate yourself. A gateway can route requests according to task complexity, data sensitivity, cost, and latency. This reserves premium inference for the moments that justify it rather than applying premium pricing to an entire workflow. Meter the exception, not the workload. Open-weight models make this division increasingly practical. Software-engineering benchmarks show that leading open-weight models can approach frontier performance on some tasks. That does not establish equivalence across every repository or workflow. Evaluate candidates against your own code, tests, and acceptance criteria before assigning production work. Change the economics of repeated use Next, decide who owns the capacity. With rented inference, every call adds to the bill. With owned capacity, most of the cost is committed upfront, so each additional call gets cheaper as usage grows. The economics are simple: per-token pricing makes heavy use more expensive, while owned capacity becomes more efficient as teams use it more. Ownership is not free, though. Power, operations, maintenance, and depreciation all must be considered. The number that matters is the fully loaded cost per merged pull request. Owned capacity also delivers a type of value that never appears on an invoice: control over sensitive code. When code generation and testing run on-premises, proprietary code stays inside the enterprise. Only approved planning prompts and governed exceptions go to external models, through a gateway the organization controls. That opens the sensitive repositories where security usually stalls adoption, and where the biggest gains are waiting. Test the operating model At HPE, a hybrid AI platform routes routine workloads from more than 150 internal applications to open-weight models running on premises, including on HPE Private Cloud AI. The result: token costs down 30 to 50%. That is the point of hybrid. With HPE Private Cloud AI, owning your inference does not mean giving up frontier models. Run the volume on capacity you own and let a gateway send the hardest work. Data also shows that usage, not licensed headcount, drives spend. The top 5% of users generated most of the consumption, and the heaviest used roughly 450 times more than the lightest on the same license. If power users grow from a small minority to half the workforce, monthly spend can rise about 4.4 times with flat headcount. Your mix will differ, which is exactly why you need to measure it. HPE tracks two metrics and recommends customers do the same. First, it tracks cost per active developer, because averaging across all licenses hides the power users driving spend. Second, it tracks cost per merged pull request, because it connects AI spending to software that ships. Baseline both costs before changing infrastructure. Then run a complete development cycle on owned capacity. If both metrics do not improve as usage grows, your current model may still be the better choice. Build for adoption, not rationing Owned capacity is not for everyone. Low or unpredictable usage favors APIs, with no capital tied up in idle infrastructure. Ownership pays off when sustained demand keeps it busy. Most enterprises will run hybrid: frontier APIs for demanding or intermittent work, owned capacity for repeatable volume. A governed gateway decides what leaves the building, so you get frontier models without giving up sovereignty over your code. As developers lean harder on coding agents, usage will keep rising. The real choice is whether that growth shows up as a bigger variable-cost bill or as more software shipped on capacity you own. The companies that lead AI-assisted development will not ration adoption to control costs. They will build an operating model where more AI use improves the economics instead of undermining them. To learn more about HPE Private Cloud AI, please visit HPE. This content was produced by HPE. It was not written by MIT Technology Review’s editorial staff.

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AI, Committee, News, Uncategorized

Raising the quality of insights in agentic analytics

In just a few years, generative AI has changed the face of enterprise analytics, notably by making analytics accessible to users across the organization. Agentic AI promises to do even more, by automating entire workflows and taking actions based on agent insights. But there is a problem: The quality of insights that agents currently generate leaves much to be desired. Fewer than half of agent-generated insights at the organizations surveyed for this report lead to business improvement. And while most respondents praise the quality of their agents’ descriptive insights, reviews of their prescriptive insights—those on which actions are based—are decidedly mixed. DOWNLOAD THE REPORT Failure to produce insights that improve the business deprives organizations of their desired return on investment in agentic analytics. Worse, flawed insights that trigger incorrect actions can cause reputational or financial damage. This report gauges how companies view the quality of the outputs produced by their analytics agents and explores how organizations are seeking to boost insight quality and get their agents working harder for the business. Some key findings from the report include the following: Agentic analytics is only just starting to deliver. On average, 48% of insights generated by analytics agents at the surveyed companies lead to actions that improve the business. That is a marked advance from the 37% average the respondents say generated such actions one year ago. But it means that more than half of the insights generated by analytics agents today are still failing to help businesses. Better quality of insights leads to clear business advantage. At a small cohort of organizations, which we term “insight leaders,” AI agents perform much better than the average. In this group, more than 70% of agent insights lead to actions that improve the business. The insight leaders also give the quality of their agents’ insights higher marks than do the total respondents overall. The quality gap is particularly wide when it comes to prescriptive insights. Insufficient context reduces insight quality. When analytics agents deliver insights of substandard quality, the main reason is a lack of business context, as cited by 55% of surveyed executives. Fragmented or inaccessible data is the other major factor, according to 45%. Fewer insight leaders say their agents struggle with access to context. Insight overload further inhibits agent effectiveness. At a majority (52%) of surveyed organizations, analytics agents generate too many insights to be properly evaluated and therefore acted upon. Less than one-quarter (24%) are able to evaluate all agent insights; most do so on a case-by-case basis, and that process is currently human-intensive. Governance and semantics are areas of focus for improving insights. The surveyed companies are prioritizing initiatives that enable better agent insights by strengthening AI and data governance (cited by 60%). They are also adding a semantic layer to their data architecture (45%). The experts we interviewed agree that the semantic layer is crucial to ensure high-performing agents. Download the report This content was produced by Insights, MIT Technology Review’s custom content arm, not its editorial staff. It was researched and written by humans, with any AI tools that may have been used limited to production processes under human oversight.

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