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JLL’s 2026 Global Data Center Outlook: Navigating the AI Supercycle, Power Scarcity and Structural Market Transformation

Sovereign AI and National Infrastructure Policy JLL frames artificial intelligence infrastructure as an emerging national strategic asset, with sovereign AI initiatives representing an estimated $8 billion in cumulative capital expenditure by 2030. While modest relative to hyperscale investment totals, this segment carries outsized strategic importance. Data localization mandates, evolving AI regulation, and national security considerations […]

Sovereign AI and National Infrastructure Policy

JLL frames artificial intelligence infrastructure as an emerging national strategic asset, with sovereign AI initiatives representing an estimated $8 billion in cumulative capital expenditure by 2030. While modest relative to hyperscale investment totals, this segment carries outsized strategic importance. Data localization mandates, evolving AI regulation, and national security considerations are increasingly driving governments to prioritize domestic compute capacity, often with pricing premiums reaching as high as 60%.

Examples cited across Europe, the Middle East, North America, and Asia underscore a consistent pattern: digital sovereignty is no longer an abstract policy goal, but a concrete driver of data center siting, ownership structures, and financing models. In practice, sovereign AI initiatives are accelerating demand for locally controlled infrastructure, influencing where capital is deployed and how assets are underwritten.

For developers and investors, this shift introduces a distinct set of considerations. Sovereign projects tend to favor jurisdictional alignment, long-term tenancy, and enhanced security requirements, while also benefiting from regulatory tailwinds and, in some cases, direct state involvement. As AI capabilities become more tightly linked to economic competitiveness and national resilience, policy-driven demand is likely to remain a durable (if specialized) component of global data center growth.

Energy and Sustainability as the Central Constraint

Energy availability emerges as the report’s dominant structural constraint. In many major markets, average grid interconnection timelines now extend beyond four years, effectively decoupling data center development schedules from traditional utility planning cycles. As a result, operators are increasingly pursuing alternative energy strategies to maintain project momentum, including:

  • Behind-the-meter generation

  • Expanded use of natural gas, particularly in the United States

  • Private-wire renewable energy projects

  • Battery energy storage systems (BESS)

JLL points to declining battery costs, seen falling below $90 per kilowatt-hour in select deployments, as a meaningful enabler of grid flexibility, renewable firming, and limited load-shaping applications. While storage is not a universal solution, its improving economics are expanding its role as a tactical tool for accelerating interconnections and supporting hybrid energy strategies.

Solar paired with storage is positioned as a cornerstone of near-term sustainability planning, particularly in regions with favorable permitting and land availability. Nuclear energy, while recognized as strategically significant for long-duration, carbon-free baseload power, is unlikely to scale meaningfully within the current decade. As Data Center Frontier has consistently reported, realistic timelines for new commercial nuclear deployments extend into the 2030s, limiting its immediate impact on near-term capacity expansion.

Taken together, these dynamics reinforce a central reality: sustainability objectives and power availability are no longer parallel considerations. They are converging constraints that increasingly shape site selection, capital allocation, and facility design across the global data center market.

Development Trends: Modularization and Retrofit Economics

Persistent supply-chain constraints and rising construction costs are reshaping how data centers are planned and delivered. JLL notes that 57% of projects experienced schedule delays in 2025, while construction costs increased at a compounded annual rate of approximately 7% between 2020 and 2025. At the same time, AI-specific fit-outs, as driven by power density, cooling complexity, and electrical infrastructure, can exceed $25 million per megawatt, often eclipsing the cost of shell-and-core construction.

In response, modular and prefabricated systems are moving from specialized use cases into the mainstream of data center development. JLL projects that annual sales of modular systems could reach $48 billion by 2030, reflecting growing demand for faster deployment, repeatable designs, and the ability to scale capacity incrementally across multiple geographies. For developers facing power uncertainty and compressed timelines, modularization offers a way to reduce execution risk while maintaining flexibility.

Equally important, data centers are rarely rendered obsolete by technology shifts. Instead, they are increasingly designed around continuous retrofit cycles, allowing existing assets to absorb new generations of compute, cooling, and power infrastructure over time. New construction is therefore being planned with retrofit economics in mind—prioritizing adaptability, modular upgrades, and long-term asset durability over single-purpose optimization.

Community Acceptance and Political Risk

One of the report’s more revealing findings is what JLL characterizes as a “community acceptance paradox.” While 93% of surveyed respondents express support for data centers in principle, only 35% support projects in their immediate vicinity. This gap translates into a persistent entitlement and political risk that can materially affect project timelines, costs, and feasibility.

As Data Center Frontier has consistently reported, organized resistance to new data center development is becoming more common across multiple markets. Concerns around energy use, water consumption, land use, and perceived local benefit increasingly surface during zoning and permitting processes, introducing uncertainty well before construction begins.

JLL argues that mitigating this risk will require a shift from reactive stakeholder engagement toward proactive co-creation, with community considerations incorporated earlier in the development lifecycle. For developers and investors, community acceptance is no longer a secondary concern; it is an operational variable that directly influences schedule certainty, capital deployment, and long-term project returns.

Capital Markets: Financing This Supercycle

JLL estimates that meeting projected data center demand will require approximately $1.2 trillion in real estate value and $870 billion in new debt by 2030, excluding tenant IT and hardware spend. The scale and duration of this capital requirement exceed the capacity of traditional bank lending alone, accelerating the use of alternative financing structures. Asset-backed securities (ABS) and commercial mortgage-backed securities (CMBS) are expected to play a growing role, with combined issuance potentially reaching $50 billion as early as 2026.

At the same time, the capital stack supporting data center development is becoming more institutionalized. Core and core-plus funds now account for nearly a quarter of total fundraising, reflecting growing demand for stabilized yield and long-duration cash flows. Merger and acquisition activity is also evolving, shifting away from headline megadeals toward recapitalizations, platform-level investments, and joint ventures with property companies. Early-cycle investors are increasingly positioning for exits, while new entrants focus on de-risked assets with secured power and contracted hyperscale tenancy.

Despite recurring concerns about market overheating, JLL finds little evidence of real estate froth. High occupancy rates, long lease durations, and strong hyperscale credit profiles continue to underpin valuations. The more pressing risk, the report suggests, lies not in excess capital but in the industry’s ability to translate financing capacity into delivered, power-enabled infrastructure on predictable timelines.

Flexibility as the Defining Competitive Advantage

JLL’s central conclusion is straightforward: the winners of this cycle will not necessarily be the largest or the fastest, but the most adaptable.

The simultaneous evolution of AI workloads, persistent power scarcity, regulatory complexity, and rising capital intensity is compressing decision timelines while increasing the cost of misalignment.

Success increasingly depends on strategies that anticipate inflection points without locking assets, capital, or geography into assumptions that may not hold.

Viewed through that lens, the JLL 2026 Global Data Center Outlook functions less as a conventional forecast than as a strategic caution.

The next phase of data center growth will favor operators and investors who treat facilities not as static real estate, but as dynamic infrastructure platforms interfacing continuously with power markets, public policy, and rapidly shifting compute requirements.

In an environment defined by uncertainty rather than equilibrium, flexibility is emerging as the industry’s most durable source of competitive advantage.

 

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California Resources eyes ‘measured’ capex ramp on way to 12% production growth thanks to Berry buy

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Petro-Victory Energy spuds São João well in Brazil

@import url(‘https://fonts.googleapis.com/css2?family=Inter:[email protected]&display=swap’); a { color: var(–color-primary-main); } .ebm-page__main h1, .ebm-page__main h2, .ebm-page__main h3, .ebm-page__main h4, .ebm-page__main h5, .ebm-page__main h6 { font-family: Inter; } body { line-height: 150%; letter-spacing: 0.025em; font-family: Inter; } button, .ebm-button-wrapper { font-family: Inter; } .label-style { text-transform: uppercase; color: var(–color-grey); font-weight: 600; font-size: 0.75rem; } .caption-style { font-size: 0.75rem; opacity: .6; } #onetrust-pc-sdk [id*=btn-handler], #onetrust-pc-sdk [class*=btn-handler] { background-color: #c19a06 !important; border-color: #c19a06 !important; } #onetrust-policy a, #onetrust-pc-sdk a, #ot-pc-content a { color: #c19a06 !important; } #onetrust-consent-sdk #onetrust-pc-sdk .ot-active-menu { border-color: #c19a06 !important; } #onetrust-consent-sdk #onetrust-accept-btn-handler, #onetrust-banner-sdk #onetrust-reject-all-handler, #onetrust-consent-sdk #onetrust-pc-btn-handler.cookie-setting-link { background-color: #c19a06 !important; border-color: #c19a06 !important; } #onetrust-consent-sdk .onetrust-pc-btn-handler { color: #c19a06 !important; border-color: #c19a06 !important; } Petro-Victory Energy Corp. has spudded the SJ‑12 well at São João field in Barreirinhas basin, on the Brazilian equatorial margin, Maranhão.  Drilling and testing SJ‑12 is aimed at proving enough gas can be produced to sell locally. The well forms part of the single non‑associated gas well commitment under a memorandum of understanding signed in 2024 with Enava. São João contains 50.1 bcf (1.4 billion cu m) non‑associated gas resources. Petro‑Victory 100% owns and operates São João field.

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Opinion Poll: Strait of Hormuz disruptions

@import url(‘https://fonts.googleapis.com/css2?family=Inter:[email protected]&display=swap’); a { color: var(–color-primary-main); } .ebm-page__main h1, .ebm-page__main h2, .ebm-page__main h3, .ebm-page__main h4, .ebm-page__main h5, .ebm-page__main h6 { font-family: Inter; } body { line-height: 150%; letter-spacing: 0.025em; font-family: Inter; } button, .ebm-button-wrapper { font-family: Inter; } .label-style { text-transform: uppercase; color: var(–color-grey); font-weight: 600; font-size: 0.75rem; } .caption-style { font-size: 0.75rem; opacity: .6; } #onetrust-pc-sdk [id*=btn-handler], #onetrust-pc-sdk [class*=btn-handler] { background-color: #c19a06 !important; border-color: #c19a06 !important; } #onetrust-policy a, #onetrust-pc-sdk a, #ot-pc-content a { color: #c19a06 !important; } #onetrust-consent-sdk #onetrust-pc-sdk .ot-active-menu { border-color: #c19a06 !important; } #onetrust-consent-sdk #onetrust-accept-btn-handler, #onetrust-banner-sdk #onetrust-reject-all-handler, #onetrust-consent-sdk #onetrust-pc-btn-handler.cookie-setting-link { background-color: #c19a06 !important; border-color: #c19a06 !important; } #onetrust-consent-sdk .onetrust-pc-btn-handler { color: #c19a06 !important; border-color: #c19a06 !important; } 388041610 © Ahmad Efendi | Dreamstime.com US, Israel, and Iran flags <!–> ]–> <!–> –> Oil & Gas Journal wants to hear your thoughts about how the collaborative strike on Iran by the US and Israel and disruptions through the Strait of Hormuz may impact oil prices.  

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Iran war

@import url(‘https://fonts.googleapis.com/css2?family=Inter:[email protected]&display=swap’); a { color: var(–color-primary-main); } .ebm-page__main h1, .ebm-page__main h2, .ebm-page__main h3, .ebm-page__main h4, .ebm-page__main h5, .ebm-page__main h6 { font-family: Inter; } body { line-height: 150%; letter-spacing: 0.025em; font-family: Inter; } button, .ebm-button-wrapper { font-family: Inter; } .label-style { text-transform: uppercase; color: var(–color-grey); font-weight: 600; font-size: 0.75rem; } .caption-style { font-size: 0.75rem; opacity: .6; } #onetrust-pc-sdk [id*=btn-handler], #onetrust-pc-sdk [class*=btn-handler] { background-color: #c19a06 !important; border-color: #c19a06 !important; } #onetrust-policy a, #onetrust-pc-sdk a, #ot-pc-content a { color: #c19a06 !important; } #onetrust-consent-sdk #onetrust-pc-sdk .ot-active-menu { border-color: #c19a06 !important; } #onetrust-consent-sdk #onetrust-accept-btn-handler, #onetrust-banner-sdk #onetrust-reject-all-handler, #onetrust-consent-sdk #onetrust-pc-btn-handler.cookie-setting-link { background-color: #c19a06 !important; border-color: #c19a06 !important; } #onetrust-consent-sdk .onetrust-pc-btn-handler { color: #c19a06 !important; border-color: #c19a06 !important; } <!–> –> <!–> ]–> <!–> –> You’ll need free site-access membership to view certain articles below. If you are not already registered with Oil & Gas Journal, sign up now for free. For Offshore articles, sign up here for free. New content will be added as it becomes available.  Oil & Gas Journal content <!–> Economics & Markets –> 26184925 © Robert Hale | Dreamstime.com <!–> ]–> <!–> When the market opened after the initial strike on Iran, oil prices traded $75/bbl on the Open, a $7/bbl jump from Friday’s High, indicating a higher risk premium as the market… –> March 6, 2026 96633437 © Titoonz | Dreamstime.com <!–> ]–> <!–> Broader infrastructure risks are emerging as regional attacks threaten production in Qatar, Saudi Arabia, and Iraq, while Europe and Asia face heightened vulnerability due to … –> March 3, 2026 387409148 © Clare Jackson | Dreamstime.com <!–> ]–> <!–> Despite initial market volatility, oil storage levels and pre-positioned supplies have mitigated immediate price shocks. However, ongoing tensions and insurance issues continue… –> March 2, 2026 220736519 © Pavel Muravev | Dreamstime.com <!–> ]–> <!–> About 20 million b/d of

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Cisco blends Splunk analytics, security with core data center management

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DCF founder Rich Miller has spent much of his career explaining how the data center industry works. Now, with his latest venture, Data Center Richness, he’s also examining how the industry learns. That thread provided the opening for the latest episode of The DCF Show Podcast, where Miller joined present Data Center Frontier Editor in Chief Matt Vincent and Senior Editor David Chernicoff for a wide-ranging discussion that ultimately landed on a simple conclusion: after two years of unprecedented AI-driven announcements, 2026 will be the year reality asserts itself. Projects will either get built, or they won’t. Power will either materialize, or it won’t. Communities will either accept data center expansion – or they’ll stop it. In other words, the industry is entering its execution phase. Why Data Center Richness Matters Now Miller launched Data Center Richness as both a podcast and a Substack publication, an effort to experiment with formats and better understand how professionals now consume industry information. Podcasts have become a primary way many practitioners follow the business, while YouTube’s discovery advantages increasingly make video versions essential. At the same time, Miller remains committed to written analysis, using Substack as a venue for deeper dives and format experimentation. One example is his weekly newsletter distilling key industry developments into just a handful of essential links rather than overwhelming readers with volume. The approach reflects a broader recognition: the pace of change has accelerated so much that clarity matters more than quantity. The topic of how people learn about data centers isn’t separate from the industry’s trajectory; it’s becoming part of it. Public perception, regulatory scrutiny, and investor expectations are now shaped by how stories are told as much as by how facilities are built. That context sets the stage for the conversation’s core theme. Execution Defines 2026 After

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Nomads at the Frontier: PTC 2026 Signals the Digital Infrastructure Industry’s Moment of Execution

Each January, the Pacific Telecommunications Council conference serves as a barometer for where digital infrastructure is headed next. And according to Nomad Futurist founders Nabeel Mahmood and Phillip Koblence, the message from PTC 2026 was unmistakable: The industry has moved beyond hype. The hard work has begun. In the latest episode of The DCF Show Podcast, part of our ongoing ‘Nomads at the Frontier’ series, Mahmood and Koblence joined Data Center Frontier to unpack the tone shift emerging across the AI and data center ecosystem. Attendance continues to grow year over year. Conversations remain energetic. But the character of those conversations has changed. As Mahmood put it: “The hype that the market started to see is actually resulting a bit more into actions now, and those conversations are resulting into some good progress.” The difference from prior years? Less speculation. More execution. From Data Center Cowboys to Real Deployments Koblence offered perhaps the sharpest contrast between PTC conversations in 2024 and those in 2026. Two years ago, many projects felt speculative. Today, developers are arriving with secured power, customers, and construction underway. “If 2024’s PTC was data center cowboys — sites that in someone’s mind could be a data center — this year was: show me the money, show me the power, give me accurate timelines.” In other words, the market is no longer rewarding hypothetical capacity. It is demanding delivered capacity. Operators now speak in terms of deployments already underway, not aspirational campuses still waiting on permits and power commitments. And behind nearly every conversation sits the same gating factor. Power. Power Has Become the Industry’s Defining Constraint Whether discussions centered on AI factories, investment capital, or campus expansion, Mahmood and Koblence noted that every conversation eventually returned to energy availability. “All of those questions are power,” Koblence said.

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Land and Expand: Early 2026 Megaprojects Reflect a Power-First Ethos

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7×24 Exchange’s Dennis Cronin on the Data Center Workforce Crisis: The Talent Cliff Is Already Here

The data center industry has spent the past two years obsessing over power constraints, AI density, and supply chain pressure. But according to longtime mission critical leader Dennis Cronin, the sector’s most consequential bottleneck may be far more human. In a recent episode of the Data Center Frontier Show Podcast, Cronin — a founding member of 7×24 Exchange International and board member of the Mission Critical Global Alliance (MCGA) — delivered a stark message: the workforce “talent cliff” the industry keeps discussing as a future risk is already impacting operations today. A Million-Job Gap Emerging Cronin’s assessment reframes the workforce conversation from a routine labor shortage to what he describes as a structural and demographic challenge. Based on recent analysis of open roles, he estimates the industry is currently short between 467,000 and 498,000 workers across core operational positions including facilities managers, operations engineers, electricians, generator technicians, and HVAC specialists. Layer in emerging roles tied to AI infrastructure, sustainability, and cyber-physical security, and the potential demand rises to roughly one million jobs. “The coming talent cliff is not coming,” Cronin said. “It’s here, here and now.” With data center capacity expanding at roughly 30% annually, the workforce pipeline is not keeping pace with physical buildout. The Five-Year Experience Trap One of the industry’s most persistent self-inflicted wounds, Cronin argues, is the widespread requirement for five years of experience in roles that are effectively entry level. The result is a closed-loop hiring dynamic: New workers can’t get hired without experience They can’t gain experience without being hired Operators end up poaching from each other Workers may benefit from the resulting 10–20% salary jumps, but the overall talent pool remains stagnant. “It’s not helping us grow the industry,” Cronin said. In a market defined by rapid expansion and increasing system complexity, that

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Powering AI When the Grid Can’t: Inside the New Behind-the-Meter Playbook

The AI infrastructure boom is forcing a hard reset in how the data center industry thinks about power. What was once a relatively straightforward utility procurement exercise is rapidly evolving into a complex, multi-disciplinary strategy problem spanning generation, fuel logistics, finance, and system architecture. That reality framed a recent special edition of The Data Center Frontier Show Podcast, which recast and updated one of the most consequential sessions from the DCF Trends Summit 2025: From Grid to Onsite Powering: Optimizing Energy Behind the Meter for Data Centers. Moderating the discussion was Fengrong Li, Senior Managing Director at FTI Consulting, whose questions and analytical framing shaped the conversation’s direction. With more than 20 years of experience across energy and infrastructure—including expert testimony before the Federal Energy Regulatory Commission (FERC), the Federal Communications Commission (FCC), and multiple state bodies—Li brought a systems-level perspective that pushed the panel well beyond a simple technology tour. Her premise was clear from the outset: the rise of AI is not just increasing data center demand. It is restructuring the entire power delivery paradigm. A Moderator Focused on the System-Level Shift Li’s role went well beyond traditional moderation. Drawing on a career that includes 13 years at Siemens focused on grid issues and eight years at Mitsui in commodity trading and infrastructure investment, she constructed the discussion around what she described as “one of the most urgent topics shaping digital infrastructure deployment.” “Onsite power and the rise of co-located, integrated power and AI campuses,” Li told the panel, “are accelerating data centers beyond traditional hubs and changing how they interact with the grid.” Throughout the session, Li repeatedly pushed panelists to connect near-term deployment realities with longer-term structural implications particularly around redundancy, financing, and regulatory exposure. The result was a grounded look at an industry that is

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Microsoft will invest $80B in AI data centers in fiscal 2025

And Microsoft isn’t the only one that is ramping up its investments into AI-enabled data centers. Rival cloud service providers are all investing in either upgrading or opening new data centers to capture a larger chunk of business from developers and users of large language models (LLMs).  In a report published in October 2024, Bloomberg Intelligence estimated that demand for generative AI would push Microsoft, AWS, Google, Oracle, Meta, and Apple would between them devote $200 billion to capex in 2025, up from $110 billion in 2023. Microsoft is one of the biggest spenders, followed closely by Google and AWS, Bloomberg Intelligence said. Its estimate of Microsoft’s capital spending on AI, at $62.4 billion for calendar 2025, is lower than Smith’s claim that the company will invest $80 billion in the fiscal year to June 30, 2025. Both figures, though, are way higher than Microsoft’s 2020 capital expenditure of “just” $17.6 billion. The majority of the increased spending is tied to cloud services and the expansion of AI infrastructure needed to provide compute capacity for OpenAI workloads. Separately, last October Amazon CEO Andy Jassy said his company planned total capex spend of $75 billion in 2024 and even more in 2025, with much of it going to AWS, its cloud computing division.

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John Deere unveils more autonomous farm machines to address skill labor shortage

Join our daily and weekly newsletters for the latest updates and exclusive content on industry-leading AI coverage. Learn More Self-driving tractors might be the path to self-driving cars. John Deere has revealed a new line of autonomous machines and tech across agriculture, construction and commercial landscaping. The Moline, Illinois-based John Deere has been in business for 187 years, yet it’s been a regular as a non-tech company showing off technology at the big tech trade show in Las Vegas and is back at CES 2025 with more autonomous tractors and other vehicles. This is not something we usually cover, but John Deere has a lot of data that is interesting in the big picture of tech. The message from the company is that there aren’t enough skilled farm laborers to do the work that its customers need. It’s been a challenge for most of the last two decades, said Jahmy Hindman, CTO at John Deere, in a briefing. Much of the tech will come this fall and after that. He noted that the average farmer in the U.S. is over 58 and works 12 to 18 hours a day to grow food for us. And he said the American Farm Bureau Federation estimates there are roughly 2.4 million farm jobs that need to be filled annually; and the agricultural work force continues to shrink. (This is my hint to the anti-immigration crowd). John Deere’s autonomous 9RX Tractor. Farmers can oversee it using an app. While each of these industries experiences their own set of challenges, a commonality across all is skilled labor availability. In construction, about 80% percent of contractors struggle to find skilled labor. And in commercial landscaping, 86% of landscaping business owners can’t find labor to fill open positions, he said. “They have to figure out how to do

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2025 playbook for enterprise AI success, from agents to evals

Join our daily and weekly newsletters for the latest updates and exclusive content on industry-leading AI coverage. Learn More 2025 is poised to be a pivotal year for enterprise AI. The past year has seen rapid innovation, and this year will see the same. This has made it more critical than ever to revisit your AI strategy to stay competitive and create value for your customers. From scaling AI agents to optimizing costs, here are the five critical areas enterprises should prioritize for their AI strategy this year. 1. Agents: the next generation of automation AI agents are no longer theoretical. In 2025, they’re indispensable tools for enterprises looking to streamline operations and enhance customer interactions. Unlike traditional software, agents powered by large language models (LLMs) can make nuanced decisions, navigate complex multi-step tasks, and integrate seamlessly with tools and APIs. At the start of 2024, agents were not ready for prime time, making frustrating mistakes like hallucinating URLs. They started getting better as frontier large language models themselves improved. “Let me put it this way,” said Sam Witteveen, cofounder of Red Dragon, a company that develops agents for companies, and that recently reviewed the 48 agents it built last year. “Interestingly, the ones that we built at the start of the year, a lot of those worked way better at the end of the year just because the models got better.” Witteveen shared this in the video podcast we filmed to discuss these five big trends in detail. Models are getting better and hallucinating less, and they’re also being trained to do agentic tasks. Another feature that the model providers are researching is a way to use the LLM as a judge, and as models get cheaper (something we’ll cover below), companies can use three or more models to

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OpenAI’s red teaming innovations define new essentials for security leaders in the AI era

Join our daily and weekly newsletters for the latest updates and exclusive content on industry-leading AI coverage. Learn More OpenAI has taken a more aggressive approach to red teaming than its AI competitors, demonstrating its security teams’ advanced capabilities in two areas: multi-step reinforcement and external red teaming. OpenAI recently released two papers that set a new competitive standard for improving the quality, reliability and safety of AI models in these two techniques and more. The first paper, “OpenAI’s Approach to External Red Teaming for AI Models and Systems,” reports that specialized teams outside the company have proven effective in uncovering vulnerabilities that might otherwise have made it into a released model because in-house testing techniques may have missed them. In the second paper, “Diverse and Effective Red Teaming with Auto-Generated Rewards and Multi-Step Reinforcement Learning,” OpenAI introduces an automated framework that relies on iterative reinforcement learning to generate a broad spectrum of novel, wide-ranging attacks. Going all-in on red teaming pays practical, competitive dividends It’s encouraging to see competitive intensity in red teaming growing among AI companies. When Anthropic released its AI red team guidelines in June of last year, it joined AI providers including Google, Microsoft, Nvidia, OpenAI, and even the U.S.’s National Institute of Standards and Technology (NIST), which all had released red teaming frameworks. Investing heavily in red teaming yields tangible benefits for security leaders in any organization. OpenAI’s paper on external red teaming provides a detailed analysis of how the company strives to create specialized external teams that include cybersecurity and subject matter experts. The goal is to see if knowledgeable external teams can defeat models’ security perimeters and find gaps in their security, biases and controls that prompt-based testing couldn’t find. What makes OpenAI’s recent papers noteworthy is how well they define using human-in-the-middle

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