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AI breakthroughs in robotics won’t change your life any time soon

The story is a collaboration between MIT Technology Review and Aventine, a non-profit research foundation that creates and supports content about how technology and science are changing the way we live. A robot shaped like a human—white with a black head and torso—has been popping up on video feeds. Perhaps you’ve seen it dance or pass popcorn, put trash in a bin, vacuum, or press the button of a microwave. Or maybe you’ve watched it fall backward while handing out water bottles or struggle to iron a shirt.  This would be Tesla’s Optimus, an AI-powered humanoid robot that Elon Musk, the company’s CEO, believes will be “not just Tesla’s biggest product ever, but probably the biggest product ever,” headed to work on factory floors and, later, in our homes. Eventually it “will have human and then superhuman dexterity,” he told shareholders in July. Optimus robots could automate almost all human labor—from hauling sheet metal to folding laundry—for as little as $20,000 each, Musk argues. Speaking at the World Economic Forum’s annual meeting in Davos, Switzerland, in January, he predicted they could be on sale to the public by the end of 2027. Musk is not alone in his evangelism. Marc Andreessen, cofounder and general partner of the Silicon Valley venture capital firm Andreessen Horowitz, has said that robotics could become the “biggest industry in the history of the planet.” In January, Jensen Huang, CEO of Nvidia, said that humanoid robots would match human-level ability this year. According to Morgan Stanley, the number of robots that “resemble and act like humans” is likely to reach nearly 1 billion by 2050, creating a market worth over $5 trillion.  Elon Musk predicts that Tesla’s Optimus humanoid could be one the world’s best-selling products. For now, it’s most often seen handing out food and drinks at Tesla events.SIPA VIA AP IMAGES Such proclamations are in large part fueled by the idea that the same AI advances behind tools like OpenAI’s ChatGPT and Anthropic’s Claude will enable a new generation of robots to imitate human movement the way chatbots imitate human language. But many robotics researchers are skeptical, arguing that such assumptions minimize the challenges of using an intelligence built on language and images to master the infinite variability of the physical world. “None of those companies [building humanoid robots]—absolutely none of them—has any idea how to make those robots smart enough to be useful,” Yann LeCun, often referred to as one of the godfathers of AI, said at another event during the January Davos conference.   Researchers also point out that the tendency to conflate humanoid robots made to resemble people with so-called generalist machines able to learn and perform multiple tasks is misleading. ”It’s very easy to make a robot that looks like a person,” explains Jonathan Hurst, cofounder and chief robot officer of Agility Robotics and professor of robotics at Oregon State University. “It is dramatically more difficult to make a machine that moves or behaves dynamically or physically like a person.”   These tensions—over whether all-purpose humanoid robots are just around the corner or nowhere in sight, and whether current forms of AI are all that’s needed to perfect them—are playing out in robotics labs across the country, where the hype over timelines is obscuring painstaking but meaningful progress. A decade or so ago, a series of breakthroughs led to a generative AI revolution that turned the long-imagined possibility of artificial intelligence into reality. Roboticists—though they disagree on exactly when this will happen—believe that an equally transformative revolution is possible in robotics, one that will endow machines with physical intuition and fluidity that has long been out of reach. As progress in robotics inches forward, the question is whether the same methods and tools that fueled advances in AI are enough to get there, or if an entirely new path is required. Robots meet advanced AI To see one of the smartest robot brains working today, it’s worth looking at what Google DeepMind can do with a piece of equipment called ALOHA 2, short for “A Low-cost Open-source Hardware System for Bimanual Teleoperation.”  Roboticists have long clashed over whether a humanlike form is necessary for generalist robots, with proponents arguing that it will help them slot into the world as it exists and detractors saying it’s not worth the trouble. ALOHA 2 reflects this second way of thinking. Not much to look at, it’s just a pair of arms, some grippers, and a couple of cameras. But despite its seeming simplicity, it is a workhorse for researchers at Google DeepMind, who use it to test their most advanced AI for robotics system, Gemini Robotics, in their various labs. When controlled by Gemini Robotics, ALOHA 2 becomes more of a generalist robot, in the sense that it can perform any number of tasks based on examples it’s been trained on. Ask it to pack a lunchbox and, as evidenced by a video of this exercise, it can use two pincer grippers to delicately place a piece of white bread into a Ziploc bag, close it, place a bunch of grapes in a Tupperware container, secure the lid, and then carefully move the items into a lunchbox before zipping it up.  It’s not a great lunch. But the fact that the robot can put it together represents an objective step forward from what was possible even, say, three years ago.  This is in large part due to AI and its impact on what are known as robot policies, which controls how a general-purpose robot will need to assess and understand its surroundings, plan how to move within them, and then perform its task correctly. The ALOHA 2 robot isn’t much more than two mechanical arms on a bench top, but it serves as a testbed for cutting-edge AI robotics models. These animations are based on human teleoperation of the robot arms, data that is used to train Google DeepMind’s models. (Video: Google DeepMind / Stanford University / Hoku Labs) Historically, these policies were based on rules developed by engineers who hard-coded them into the robot’s software—thousands of lines of code that would determine each millimeter of a robot’s movements in hundreds of tasks. What’s been happening for the last few years—and what is largely responsible for the optimism about generalist robots—is that robot policies are being handed over to advanced AI systems instead of being coded into the robot’s software. This first happened with VLMs, or vision-language models. These are similar to large language models, but they’re trained on images as well as words. Show a VLM a picture of a coffee spill and ask it to find a tool to clean up the mess, and it can identify a nearby cloth. This sort of immediate contextual understanding didn’t exist a couple of years ago when robot policies were hard-coded.  Next came vision-language-action models, which enable robots to assess their environment and take action within it. The models do this by adding yet another component: motion commands. VLAs are trained on a series of images or videos related to performing a given task along with associated data about how a robot arm moves to perform it. That movement data is typically collected through teleoperation, in which a human uses remote controls to lead a robot through an action. This sort of training allows the AI to learn how to command the robot to move and operate during a given task. Place a VLA-powered robot in front of a desk and tell it to “close a laptop” or “wrap up the headphone wire,” and it will survey the scene, identify the relevant object, plan a way to execute the request, and then swing its arms into action—at least if it has seen this task accomplished before.  The Gemini Robotics model is a VLA, trained on many hours of human demonstrations depicting a vast array of different actions. As a result, it can perform relatively complex tasks like picking up snow peas with kitchen tongs, doing origami, or putting together a simple lunch. It’s impressive, but there’s a glaring limitation: For now, if a robot controlled by a VLA is asked to perform a task that falls outside its training set, it’s highly likely to fail.  “Thinking about the space of all tasks, a real generalist policy would be able to do everything along that spectrum,” says Edward Johns, a robotics professor at Imperial College London. Today, though, a Gemini Robotics model can do only “a few things here and a few things there.” The search for true generality So how do we get robots to be able to do more things? The usual answer is probably not surprising: Train them on more data.   More data, the thinking goes, equals more examples, and more examples equals more generality. Google DeepMind, for instance, wants to pull together “as much data as possible,” says Pannag Sanketi, a former tech lead in robotics at the company who’s currently working on his own AI robotics project. But where to get it? Large language models had the benefit of oceans of existing text for training. There is no corresponding pool of high-quality physical demonstrations on which to train robots. Researchers have a few ways to make up for this, but all have flaws. One is to employ large numbers of people to create and collect teleoperation data (costly and time-consuming). Another is to train VLAs on videos of people performing activities (the resulting data quality is poor). Yet another is to deploy robots in the real world and use data collected from those experiences to further refine AI models (robots aren’t safe or reliable outside labs). Sanketi thinks a “multi-prong” approach that uses data collected from all these sources is the most likely path forward. But the belief that training data alone is the answer is far from universal. Agility’s Hurst describes it as “a fundamentally flawed premise.”  The issue is that tasks in the real world quickly explode in complexity. If you’re trying to, say, make coffee, there are myriad variables: No two kitchens are identical; coffee machines work in different ways; different cups require different grips; coffee grounds, hot water, and milk all need to be handled differently. Even this simple task requires understanding an ever-changing menu of possibilities. Achieving generality through VLAs, Hurst argues, would require “complete data coverage of all of the things that [a robot] could ever do.” Or, in other words, an almost infinite pool of training data.  LeCun is dismissive of the whole approach. “The [AI] approaches that have been successful for language do not work for high-dimensional, continuous, noisy data”—the kind of data that is commonplace in robotics, he said in Davos. “You have to use something else.” The leading contender for “something else” is the so-called world model—a form of AI trained less on text than on a combination of video, three-dimensional scans, and sensor data and built to predict the outcomes of actions in the real world. The aim is to build models that possess an internal representation of reality precise enough to capture how the physical world actually operates—how objects move, collide, fall, and deform. If roboticists could train machines in simulations faithful enough to real-world physics, development would become faster, cheaper, and safer, reducing the need for real-world testing. Even more transformative, robots equipped with world models could reason about their surroundings rather than merely reacting to them, helping them anticipate the consequences of an action before taking it. [embedded content] Google DeepMind’s latest AI models for robots are increasingly dextrous, if rather slow and erratic Companies like Nvidia and Google are working on the technology, and investor cash is pouring into high-profile startups. World Labs, cofounded by the Stanford AI researcher Fei-Fei Li, raised $1 billion in funding in February and was acquired by AMD at the end of September for $8.2 billion. AMI Labs, cofounded by LeCun (formerly Meta’s chief AI scientist), also raised $1 billion in March. Yet by their own admission, it is still early days. Late last year Li described the field as “nascent,” adding that “foundational approaches are still being established.” In a June Substack she described daunting challenges. For now, world models are a promising area of research rather than an immediate route to general-purpose robotics, but we are beginning to see glimmers of what they could achieve. One such glimpse came with a small but potentially significant leap forward that took place in a San Francisco robotics lab last April.  A breakthrough? In the heart of San Francisco’s Mission District, the startup Physical Intelligence—or PI (as in π), as it likes to be known—is focused on developing a universal brain that could, theoretically, turn any robot into a generalist. Using an everything-including-the-kitchen sink approach to training AI models for robots, the company recently observed a hint of what a robotic brain equipped with a world model could be capable of.  In 2024, PI published details of its first generalist robotics system, called π0, a VLA it claimed was the “most capable and dexterous generalist robot policy to date.” The model was initially trained on a 10,000-hour proprietary collection of human demonstrations gathered through teleoperation as well as several open-source robot datasets. A version released in spring 2025, π0.5, was trained on a wider variety of datasets, including labeled images from the web, lending it more versatility. A fall 2025 update, π0.6, added reinforcement learning to the model.   Each update yielded important improvements to the model’s performance, increasing its menu of abilities from slowly folding laundry to putting things away in new environments to completing tasks like folding boxes with a higher success rate. Then, in April 2026, π0.7 seemed to catapult PI into new territory. This version makes use of a less powerful world model that generates images of steps necessary to perform a task. As the robot undertakes the job, this “lightweight” model feeds it snapshots of what to do next.  How do you teach a robot to use a knife? At the startup Physical Intelligence, it begins with designing the right AI architecture, which includes components dedicated to language, vision and motion. This will help it relate commands — “hey robot, chop my vegetables!” — to appropriate actions.WINNI WINTERMEYER Data to train the AI can come from many sources, but one of the most important is human demonstrations. An employee at the startup controls a robot arm through teleoperation, exposing the AI to the task of slicing a zucchini.WINNI WINTERMEYER Researchers train the AI model on hundred of examples of human demonstrations, as well images from the web and first-person video. WINNI WINTERMEYER Once the AI is trained, the team presents it a task it has not seen before, such as chopping this summer squash. When a robot hasn’t seen the exact task before — it may wonder if that’s a yellow zucchini, or an unusual banana — it can mess up. But any failures can be used to help refine the model.WINNI WINTERMEYER The company claims that the model exhibits the first signs of compositional generalization, a term for AI systems’ ability to perform skills they’ve never been exposed to by recombining ones learned in their training data. One test involved asking a model to “load a sweet potato into the air fryer”—a task it had never previously encountered. In a demonstration video, the machine futzes around a little, makes a few false starts, and eventually manages a reasonable effort, though it doesn’t finish the task completely. Sergey Levine, a professor at the University of California, Berkeley, and a cofounder of PI, is excited by the potential: “It’s actually the first time that we’ve convincingly seen that kind of compositional generalization, where we can basically ask the model to do tasks that we did not specifically collect data for and train it to do, and it’ll actually make a passable attempt.”  The success led the team to wonder how the model was able to achieve such a feat. After some digging, they found snippets of relevant labeled teleoperation data lurking in the training material, including two examples of a human controller using the robot to push an air fryer basket into the fryer. Those shreds of data might have been enough to enable π0.7 to almost air-fry a sweet potato. For now, it remains unclear just how impressive π0.7’s abilities to generalize are. Still, given how fleeting the model’s exposure to air fryers had been, it offers a glimpse into how far cutting-edge research can currently take robots.  “70% success is like it doesn’t work” You might be sensing a disconnect between the halting baby steps robots are making in labs—“Look! It put a sweet potato into an air fryer!”—and the dazzling, lifelike nimbleness on view during many demonstrations and videos, where robots are seen doing everything from dancing on a stage to courteously serving drinks. Such demos often don’t clearly reveal a key fact: In many instances, humans are controlling the robot or have carefully scripted its actions. (The robot that appeared onstage with Nvidia CEO Jensen Huang in March 2025, for example, seemingly responding to his instructions and following him around, was remote-controlled by what its makers called “a puppeteer behind the scenes.”)  For now, fully autonomous motion planning so that a robot knows where it should go—especially in new, chaotic environments like a construction site or a unfamiliar home—remains a largely unsolved challenge. A bigger challenge still—albeit one that is often related—lies in getting robots to tackle larger, more ambiguous jobs that include multiple tasks and require decisions about how and in what order they’re done. This would be the difference between a robot that can put a plate into a microwave and one that can successfully respond to the prompt “Make dinner” by exploring the refrigerator, chopping ingredients, and firing up the stove. Google DeepMind’s best attempts at something like this—which involved asking its robot to survey a kitchen and pack all the ingredients for a mushroom risotto into a basket—have so far resulted in failure. Adding to the challenge, a practical robot must essentially get it right every time. With VLAs, “people are very excited when their result goes from 50% success to 70% success,” says Marc Raibert, founder of Boston Dynamics. “But 70% success is like it doesn’t work, right?” Demonstrations often make robots look useful, but the machines still mess up far too often to be used reliably in homes and factories.AP IMAGES, SHUTTERSTOCK, 1X, AGILITY ROBOTICS, GOOGLE DEEPMIND The few humanoids that are being tested in real-life settings are undertaking extremely limited tasks in tightly controlled environments. They’re far from generalists. Agility has hundreds of robots deployed across trials in facilities owned by GXO Logistics, Amazon, and Schaeffler, according to the company. But for now, Hurst says, the robots are targeting simple tasks such as moving bins and totes around. Even then, he adds, it took years to develop robots safe enough for logistics firms to even contemplate using them. For his part, Elon Musk claimed in May 2025 that “thousands” of his Optimus robots would be working at Tesla factories by the end of the year, but in January of this year he said that the company had only “some of the Tesla Optimus robots doing simple tasks in the factory.” While humanoids are starting to venture onto the factory floor, making the jump to households will be even more difficult. Right now, should you so desire, you can preorder the 1X Neo home robot, expected to be ready for delivery sometime later this year. Yours for $20,000, it promises to take on “the boring and mundane tasks around the house”—putting away dishes, answering the door, tidying the living room—“so you can focus on what matters to you.” The idea is for this five-foot-six-inch robot to one day perform all those tasks autonomously, but for now a remote human operator is needed for it to do most things. (Yes, a person would need permission to peer into your home through the robot’s cameras.) Asked how long it will be until fully autonomous robots are ready for domestic work, Hurst said, “If I had to pick a number, I’d say it’s 10 years before robots are … actually doing useful things in people’s homes.” When that happens, the robots might well be Chinese, as China is well ahead of the West in terms of production. Nearly 90% of the roughly 15,000 humanoid robots shipped in 2025 were made by Chinese companies, according to the market intelligence company Omdia and the Chinese robotics firm Unitree. One model produced by Unitree, which shipped more humanoid robots than any other company last year, costs less than $6,000. Such an affordable price could go a long way toward making robots more attractive to consumers, though the company expects its machines to be used in industrial applications first. (If you’re wondering who is buying all these Chinese robots, by the way, the AP recently reported that orders come predominantly from corporate and academic labs and state-owned enterprises.) We’ve been here before  The dream of building a humanoid robot runs deep: As far back as 1495, Leonardo da Vinci sketched out designs for a mechanical knight, controlled by cables and pulleys. Through the 20th century, machines of sci-fi fever dreams have come and gone.  Westinghouse’s Elektro was a sensation at the 1939 World Fair. GETTY IMAGES Westinghouse’s seven-foot-tall box on legs, Elektro, hit the New York World’s Fair in 1939, smoking a cigarette. WABOT-1, built by Waseda University in Japan in 1973, was the first full-scale, programmable humanoid robot. Honda’s ASIMO, unveiled in 2000, was probably the first such machine to prove at all competent—it could, at least to some degree, climb steps, recognize faces, and autonomously move through spaces. But the robot was discontinued in 2018, unable to advance far enough beyond what it could do in demonstrations to be useful.  All, at the time, were impressive—even jaw-dropping—feats of engineering. But none were ready to navigate the real world. Today’s robots, even with the transformative power of advanced AI, still face the same existential challenge.

The story is a collaboration between MIT Technology Review and Aventine, a non-profit research foundation that creates and supports content about how technology and science are changing the way we live.

A robot shaped like a human—white with a black head and torso—has been popping up on video feeds. Perhaps you’ve seen it dance or pass popcorn, put trash in a bin, vacuum, or press the button of a microwave. Or maybe you’ve watched it fall backward while handing out water bottles or struggle to iron a shirt. 

This would be Tesla’s Optimus, an AI-powered humanoid robot that Elon Musk, the company’s CEO, believes will be “not just Tesla’s biggest product ever, but probably the biggest product ever,” headed to work on factory floors and, later, in our homes. Eventually it “will have human and then superhuman dexterity,” he told shareholders in July. Optimus robots could automate almost all human labor—from hauling sheet metal to folding laundry—for as little as $20,000 each, Musk argues. Speaking at the World Economic Forum’s annual meeting in Davos, Switzerland, in January, he predicted they could be on sale to the public by the end of 2027.

Musk is not alone in his evangelism. Marc Andreessen, cofounder and general partner of the Silicon Valley venture capital firm Andreessen Horowitz, has said that robotics could become the “biggest industry in the history of the planet.” In January, Jensen Huang, CEO of Nvidia, said that humanoid robots would match human-level ability this year. According to Morgan Stanley, the number of robots that “resemble and act like humans” is likely to reach nearly 1 billion by 2050, creating a market worth over $5 trillion. 

Elon Musk predicts that Tesla’s Optimus humanoid could be one the world’s best-selling products. For now, it’s most often seen handing out food and drinks at Tesla events.
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Such proclamations are in large part fueled by the idea that the same AI advances behind tools like OpenAI’s ChatGPT and Anthropic’s Claude will enable a new generation of robots to imitate human movement the way chatbots imitate human language. But many robotics researchers are skeptical, arguing that such assumptions minimize the challenges of using an intelligence built on language and images to master the infinite variability of the physical world. “None of those companies [building humanoid robots]—absolutely none of them—has any idea how to make those robots smart enough to be useful,” Yann LeCun, often referred to as one of the godfathers of AI, said at another event during the January Davos conference.  

Researchers also point out that the tendency to conflate humanoid robots made to resemble people with so-called generalist machines able to learn and perform multiple tasks is misleading. ”It’s very easy to make a robot that looks like a person,” explains Jonathan Hurst, cofounder and chief robot officer of Agility Robotics and professor of robotics at Oregon State University. “It is dramatically more difficult to make a machine that moves or behaves dynamically or physically like a person.”  

These tensions—over whether all-purpose humanoid robots are just around the corner or nowhere in sight, and whether current forms of AI are all that’s needed to perfect them—are playing out in robotics labs across the country, where the hype over timelines is obscuring painstaking but meaningful progress.

A decade or so ago, a series of breakthroughs led to a generative AI revolution that turned the long-imagined possibility of artificial intelligence into reality. Roboticists—though they disagree on exactly when this will happen—believe that an equally transformative revolution is possible in robotics, one that will endow machines with physical intuition and fluidity that has long been out of reach. As progress in robotics inches forward, the question is whether the same methods and tools that fueled advances in AI are enough to get there, or if an entirely new path is required.

Robots meet advanced AI

To see one of the smartest robot brains working today, it’s worth looking at what Google DeepMind can do with a piece of equipment called ALOHA 2, short for “A Low-cost Open-source Hardware System for Bimanual Teleoperation.” 

Roboticists have long clashed over whether a humanlike form is necessary for generalist robots, with proponents arguing that it will help them slot into the world as it exists and detractors saying it’s not worth the trouble. ALOHA 2 reflects this second way of thinking. Not much to look at, it’s just a pair of arms, some grippers, and a couple of cameras. But despite its seeming simplicity, it is a workhorse for researchers at Google DeepMind, who use it to test their most advanced AI for robotics system, Gemini Robotics, in their various labs.

When controlled by Gemini Robotics, ALOHA 2 becomes more of a generalist robot, in the sense that it can perform any number of tasks based on examples it’s been trained on. Ask it to pack a lunchbox and, as evidenced by a video of this exercise, it can use two pincer grippers to delicately place a piece of white bread into a Ziploc bag, close it, place a bunch of grapes in a Tupperware container, secure the lid, and then carefully move the items into a lunchbox before zipping it up. 

It’s not a great lunch. But the fact that the robot can put it together represents an objective step forward from what was possible even, say, three years ago. 

This is in large part due to AI and its impact on what are known as robot policies, which controls how a general-purpose robot will need to assess and understand its surroundings, plan how to move within them, and then perform its task correctly.

The ALOHA 2 robot isn’t much more than two mechanical arms on a bench top, but it serves as a testbed for cutting-edge AI robotics models. These animations are based on human teleoperation of the robot arms, data that is used to train Google DeepMind’s models. (Video: Google DeepMind / Stanford University / Hoku Labs)

Historically, these policies were based on rules developed by engineers who hard-coded them into the robot’s software—thousands of lines of code that would determine each millimeter of a robot’s movements in hundreds of tasks. What’s been happening for the last few years—and what is largely responsible for the optimism about generalist robots—is that robot policies are being handed over to advanced AI systems instead of being coded into the robot’s software. This first happened with VLMs, or vision-language models. These are similar to large language models, but they’re trained on images as well as words. Show a VLM a picture of a coffee spill and ask it to find a tool to clean up the mess, and it can identify a nearby cloth. This sort of immediate contextual understanding didn’t exist a couple of years ago when robot policies were hard-coded. 

Next came vision-language-action models, which enable robots to assess their environment and take action within it. The models do this by adding yet another component: motion commands. VLAs are trained on a series of images or videos related to performing a given task along with associated data about how a robot arm moves to perform it. That movement data is typically collected through teleoperation, in which a human uses remote controls to lead a robot through an action. This sort of training allows the AI to learn how to command the robot to move and operate during a given task. Place a VLA-powered robot in front of a desk and tell it to “close a laptop” or “wrap up the headphone wire,” and it will survey the scene, identify the relevant object, plan a way to execute the request, and then swing its arms into action—at least if it has seen this task accomplished before. 

The Gemini Robotics model is a VLA, trained on many hours of human demonstrations depicting a vast array of different actions. As a result, it can perform relatively complex tasks like picking up snow peas with kitchen tongs, doing origami, or putting together a simple lunch. It’s impressive, but there’s a glaring limitation: For now, if a robot controlled by a VLA is asked to perform a task that falls outside its training set, it’s highly likely to fail. 

“Thinking about the space of all tasks, a real generalist policy would be able to do everything along that spectrum,” says Edward Johns, a robotics professor at Imperial College London. Today, though, a Gemini Robotics model can do only “a few things here and a few things there.”

The search for true generality

So how do we get robots to be able to do more things? The usual answer is probably not surprising: Train them on more data.  

More data, the thinking goes, equals more examples, and more examples equals more generality. Google DeepMind, for instance, wants to pull together “as much data as possible,” says Pannag Sanketi, a former tech lead in robotics at the company who’s currently working on his own AI robotics project. But where to get it? Large language models had the benefit of oceans of existing text for training. There is no corresponding pool of high-quality physical demonstrations on which to train robots. Researchers have a few ways to make up for this, but all have flaws. One is to employ large numbers of people to create and collect teleoperation data (costly and time-consuming). Another is to train VLAs on videos of people performing activities (the resulting data quality is poor). Yet another is to deploy robots in the real world and use data collected from those experiences to further refine AI models (robots aren’t safe or reliable outside labs). Sanketi thinks a “multi-prong” approach that uses data collected from all these sources is the most likely path forward.

But the belief that training data alone is the answer is far from universal. Agility’s Hurst describes it as “a fundamentally flawed premise.” 

The issue is that tasks in the real world quickly explode in complexity. If you’re trying to, say, make coffee, there are myriad variables: No two kitchens are identical; coffee machines work in different ways; different cups require different grips; coffee grounds, hot water, and milk all need to be handled differently. Even this simple task requires understanding an ever-changing menu of possibilities. Achieving generality through VLAs, Hurst argues, would require “complete data coverage of all of the things that [a robot] could ever do.” Or, in other words, an almost infinite pool of training data. 

LeCun is dismissive of the whole approach. “The [AI] approaches that have been successful for language do not work for high-dimensional, continuous, noisy data”—the kind of data that is commonplace in robotics, he said in Davos. “You have to use something else.”

The leading contender for “something else” is the so-called world model—a form of AI trained less on text than on a combination of video, three-dimensional scans, and sensor data and built to predict the outcomes of actions in the real world. The aim is to build models that possess an internal representation of reality precise enough to capture how the physical world actually operates—how objects move, collide, fall, and deform. If roboticists could train machines in simulations faithful enough to real-world physics, development would become faster, cheaper, and safer, reducing the need for real-world testing. Even more transformative, robots equipped with world models could reason about their surroundings rather than merely reacting to them, helping them anticipate the consequences of an action before taking it.

Google DeepMind’s latest AI models for robots are increasingly dextrous, if rather slow and erratic

Companies like Nvidia and Google are working on the technology, and investor cash is pouring into high-profile startups. World Labs, cofounded by the Stanford AI researcher Fei-Fei Li, raised $1 billion in funding in February and was acquired by AMD at the end of September for $8.2 billion. AMI Labs, cofounded by LeCun (formerly Meta’s chief AI scientist), also raised $1 billion in March. Yet by their own admission, it is still early days. Late last year Li described the field as “nascent,” adding that “foundational approaches are still being established.” In a June Substack she described daunting challenges. For now, world models are a promising area of research rather than an immediate route to general-purpose robotics, but we are beginning to see glimmers of what they could achieve.

One such glimpse came with a small but potentially significant leap forward that took place in a San Francisco robotics lab last April. 

A breakthrough?

In the heart of San Francisco’s Mission District, the startup Physical Intelligence—or PI (as in π), as it likes to be known—is focused on developing a universal brain that could, theoretically, turn any robot into a generalist. Using an everything-including-the-kitchen sink approach to training AI models for robots, the company recently observed a hint of what a robotic brain equipped with a world model could be capable of. 

In 2024, PI published details of its first generalist robotics system, called π0, a VLA it claimed was the “most capable and dexterous generalist robot policy to date.” The model was initially trained on a 10,000-hour proprietary collection of human demonstrations gathered through teleoperation as well as several open-source robot datasets. A version released in spring 2025, π0.5, was trained on a wider variety of datasets, including labeled images from the web, lending it more versatility. A fall 2025 update, π0.6, added reinforcement learning to the model.  

Each update yielded important improvements to the model’s performance, increasing its menu of abilities from slowly folding laundry to putting things away in new environments to completing tasks like folding boxes with a higher success rate. Then, in April 2026, π0.7 seemed to catapult PI into new territory. This version makes use of a less powerful world model that generates images of steps necessary to perform a task. As the robot undertakes the job, this “lightweight” model feeds it snapshots of what to do next. 

How do you teach a robot to use a knife? At the startup Physical Intelligence, it begins with designing the right AI architecture, which includes components dedicated to language, vision and motion. This will help it relate commands — “hey robot, chop my vegetables!” — to appropriate actions.
WINNI WINTERMEYER
Data to train the AI can come from many sources, but one of the most important is human demonstrations. An employee at the startup controls a robot arm through teleoperation, exposing the AI to the task of slicing a zucchini.
WINNI WINTERMEYER
A researcher points out a detail from a training video to his colleague on a laptop screen
Researchers train the AI model on hundred of examples of human demonstrations, as well images from the web and first-person video.
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Robot grippers cutting a yellow squash with a kitchen knife
Once the AI is trained, the team presents it a task it has not seen before, such as chopping this summer squash. When a robot hasn’t seen the exact task before — it may wonder if that’s a yellow zucchini, or an unusual banana — it can mess up. But any failures can be used to help refine the model.
WINNI WINTERMEYER

The company claims that the model exhibits the first signs of compositional generalization, a term for AI systems’ ability to perform skills they’ve never been exposed to by recombining ones learned in their training data. One test involved asking a model to “load a sweet potato into the air fryer”—a task it had never previously encountered. In a demonstration video, the machine futzes around a little, makes a few false starts, and eventually manages a reasonable effort, though it doesn’t finish the task completely.

Sergey Levine, a professor at the University of California, Berkeley, and a cofounder of PI, is excited by the potential: “It’s actually the first time that we’ve convincingly seen that kind of compositional generalization, where we can basically ask the model to do tasks that we did not specifically collect data for and train it to do, and it’ll actually make a passable attempt.” 

The success led the team to wonder how the model was able to achieve such a feat. After some digging, they found snippets of relevant labeled teleoperation data lurking in the training material, including two examples of a human controller using the robot to push an air fryer basket into the fryer. Those shreds of data might have been enough to enable π0.7 to almost air-fry a sweet potato.

For now, it remains unclear just how impressive π0.7’s abilities to generalize are. Still, given how fleeting the model’s exposure to air fryers had been, it offers a glimpse into how far cutting-edge research can currently take robots. 

“70% success is like it doesn’t work”

You might be sensing a disconnect between the halting baby steps robots are making in labs—“Look! It put a sweet potato into an air fryer!”—and the dazzling, lifelike nimbleness on view during many demonstrations and videos, where robots are seen doing everything from dancing on a stage to courteously serving drinks. Such demos often don’t clearly reveal a key fact: In many instances, humans are controlling the robot or have carefully scripted its actions. (The robot that appeared onstage with Nvidia CEO Jensen Huang in March 2025, for example, seemingly responding to his instructions and following him around, was remote-controlled by what its makers called “a puppeteer behind the scenes.”) 

For now, fully autonomous motion planning so that a robot knows where it should go—especially in new, chaotic environments like a construction site or a unfamiliar home—remains a largely unsolved challenge. A bigger challenge still—albeit one that is often related—lies in getting robots to tackle larger, more ambiguous jobs that include multiple tasks and require decisions about how and in what order they’re done. This would be the difference between a robot that can put a plate into a microwave and one that can successfully respond to the prompt “Make dinner” by exploring the refrigerator, chopping ingredients, and firing up the stove. Google DeepMind’s best attempts at something like this—which involved asking its robot to survey a kitchen and pack all the ingredients for a mushroom risotto into a basket—have so far resulted in failure.

Adding to the challenge, a practical robot must essentially get it right every time. With VLAs, “people are very excited when their result goes from 50% success to 70% success,” says Marc Raibert, founder of Boston Dynamics. “But 70% success is like it doesn’t work, right?”

split screen of nine clips with different robots attempting tasks; some are teleoperated and a few have collided with objects or fallen.
Demonstrations often make robots look useful, but the machines still mess up far too often to be used reliably in homes and factories.
AP IMAGES, SHUTTERSTOCK, 1X, AGILITY ROBOTICS, GOOGLE DEEPMIND

The few humanoids that are being tested in real-life settings are undertaking extremely limited tasks in tightly controlled environments. They’re far from generalists. Agility has hundreds of robots deployed across trials in facilities owned by GXO Logistics, Amazon, and Schaeffler, according to the company. But for now, Hurst says, the robots are targeting simple tasks such as moving bins and totes around. Even then, he adds, it took years to develop robots safe enough for logistics firms to even contemplate using them. For his part, Elon Musk claimed in May 2025 that “thousands” of his Optimus robots would be working at Tesla factories by the end of the year, but in January of this year he said that the company had only “some of the Tesla Optimus robots doing simple tasks in the factory.”

While humanoids are starting to venture onto the factory floor, making the jump to households will be even more difficult. Right now, should you so desire, you can preorder the 1X Neo home robot, expected to be ready for delivery sometime later this year. Yours for $20,000, it promises to take on “the boring and mundane tasks around the house”—putting away dishes, answering the door, tidying the living room—“so you can focus on what matters to you.” The idea is for this five-foot-six-inch robot to one day perform all those tasks autonomously, but for now a remote human operator is needed for it to do most things. (Yes, a person would need permission to peer into your home through the robot’s cameras.) Asked how long it will be until fully autonomous robots are ready for domestic work, Hurst said, “If I had to pick a number, I’d say it’s 10 years before robots are … actually doing useful things in people’s homes.”

When that happens, the robots might well be Chinese, as China is well ahead of the West in terms of production. Nearly 90% of the roughly 15,000 humanoid robots shipped in 2025 were made by Chinese companies, according to the market intelligence company Omdia and the Chinese robotics firm Unitree. One model produced by Unitree, which shipped more humanoid robots than any other company last year, costs less than $6,000. Such an affordable price could go a long way toward making robots more attractive to consumers, though the company expects its machines to be used in industrial applications first. (If you’re wondering who is buying all these Chinese robots, by the way, the AP recently reported that orders come predominantly from corporate and academic labs and state-owned enterprises.)

We’ve been here before 

The dream of building a humanoid robot runs deep: As far back as 1495, Leonardo da Vinci sketched out designs for a mechanical knight, controlled by cables and pulleys. Through the 20th century, machines of sci-fi fever dreams have come and gone. 

Jeanne Dowling reaches up to light a cigarette for Elektro, a seven foot robot built by Westinghouse.
Westinghouse’s Elektro was a sensation at the 1939 World Fair.
GETTY IMAGES

Westinghouse’s seven-foot-tall box on legs, Elektro, hit the New York World’s Fair in 1939, smoking a cigarette. WABOT-1, built by Waseda University in Japan in 1973, was the first full-scale, programmable humanoid robot. Honda’s ASIMO, unveiled in 2000, was probably the first such machine to prove at all competent—it could, at least to some degree, climb steps, recognize faces, and autonomously move through spaces. But the robot was discontinued in 2018, unable to advance far enough beyond what it could do in demonstrations to be useful. 

All, at the time, were impressive—even jaw-dropping—feats of engineering. But none were ready to navigate the real world. Today’s robots, even with the transformative power of advanced AI, still face the same existential challenge.

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Dell gives AI agents a broader view of enterprise data

The Unified Semantic Layer establishes a common business vocabulary across structured and unstructured data. Dell also plans to incorporate Nvidia’s open-source Auto-Ontology technology, which can help construct knowledge graphs from enterprise data. The Enterprise Knowledge Graph goes a step further by mapping relationships between data, including metadata, lineage, query history

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HPE supercharges ProLiant servers with AMD’s EPYC 9006 processors

One important attribute is that HPE iLO 8 delivers auto-SED (Self-Encrypting Drive) server capabilities, automatically protecting data at rest from the moment the server is first powered on, according to Aaron Lamond, product marketing manager, HPE Compute. “No external key manager, additional configuration, or manual activation is required. Encryption stops

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LNG market tightens into winter as Europe pulls US cargoes, China reopens contract talks

Global LNG markets are entering winter with limited supply cushion, even as a growing carrier fleet and shorter Atlantic voyages keep shipping rates subdued. Meanwhile China is showing signs of returning to long-term US contracting. New liquefaction capacity and higher utilization outside Qatar and the UAE have offset about 60% of Middle East LNG supply losses since March, according to a recent analysis from Morgan Stanley. Weaker demand outside Europe and European storage withdrawals have helped offset the remaining supply loss, but left inventories unusually low heading into winter. EU storage was about 70% full in late September, compared with 82% a year earlier and a 10-year average of 87%. Morgan Stanley raised its fourth-quarter JKM forecast to $27.50/MMbtu from $25/MMbtu, citing a slower Qatari restart and continued winter upside risk. Europe is drawing more flexible US supply. About 57% of US LNG exports were headed to Europe in September, up from 53% in August, while US feedgas rose about 6% month over month as Freeport recovered from an outage. Strong European demand is supporting vessel demand, but shorter US-Europe voyages and rapid fleet growth are more than offsetting that pressure. Atlantic spot rates for modern two-stroke LNG carriers stood at about $25,750/day on Oct. 6, while Pacific rates were about $39,000/day, according to Spark Commodities data. About 55 new LNG carriers were delivered in the first 7 months of 2026, with more expected by yearend. Morgan Stanley similarly noted that Asia LNG carrier rates had fallen about 80% from early-March highs and returned near pre-conflict levels, although route costs remain above levels immediately before the conflict. Meantime, the investment bank expects more than 30 million tpy of non-Middle East capacity to start by end-2027, before additional volumes from Qatar’s North Field expansion. China contracting returns China is adding another

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EIA: US crude oil inventories down 3.2 million bbl

US crude oil inventories for the week ended Oct. 2, excluding the Strategic Petroleum Reserve, decreased by 3.2 million bbl from the previous week, according to data from the US Energy Information Administration (EIA). At 424.1 million bbl, US crude oil inventories are 1% above the 5-year average for this time of year, the EIA report indicated. Gasoline inventories increased 0.4 million bbl, 6% below the 5-year average. Propane-propylene inventories decreased 1.8 million bbl, 18% above the 5-year average. Total commercial petroleum inventories decreased by 6.9 million bbl for the week. Distillate inventories remained unchanged, 12% below the 5-year average. US crude oil refinery inputs averaged 16.5 million b/d for the week ended Oct. 2, which was 223,000 b/d more than the previous week’s average. Refineries operated at 92.7% of capacity. Gasoline output averaged 9.3 million b/d, and distillate production increased to 5.3 million b/d. Crude oil imports increased 1.1 million b/d to 6.8 million b/d. The 4-week average of 6.4 million b/d is 4.3% above the year-ago level. Gasoline imports averaged 512,000 b/d; distillate imports averaged 118,000 b/d. Over the past four weeks, total product supplied averaged 21.1 million b/d, up 0.7% year over year. The 4-week average for gasoline product supplied dereased 0.3% year over year to 8.8 million b/d, while the 4-week average for distillate product supplied decreased 1.6% to 3.8 million b/d. The 4-week average for jet fuel product supplied increased 6.0% year over year.

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Chevron restructures Bakken midstream agreements, transfers Hess Midstream stake

The restructuring follows Chevron’s acquisition of Hess Corp. in July 2025. Chevron inherited Hess Corp.’s 37.8% interest in Hess Midstream, which provides midstream services to Chevron’s Bakken operations. Hess Midstream subsequently adjusted its outlook after Chevron reduced its Bakken drilling program to 3 rigs from 4 in late 2025. The lower activity led Hess Midstream to suspend its planned Capa gas plant project and lower its throughput and capital-spending expectations. Chevron is now expected to reduce its Bakken drilling program to 2 rigs in December, with Hess Midstream’s minimum revenue commitments for 2027-29 based on the 2-rig program, Hess noted. Bakken agreements Hess Midstream and Chevron will reduce the tariff rates Chevron pays for crude oil and natural gas gathering and processing services in the Bakken for 2027-33 and extend the agreements through 2045. Bakken agreements currently structured on a cost-of-service basis will convert to fixed-fee arrangements with inflation escalators. The revised agreements will include a minimum revenue commitment equal to 80% of Hess Midstream’s expected Bakken revenues attributable to Chevron through 2033. The minimum revenue commitment will be established 3 years in advance and, once established for a given year, can only increase based on updated annual development plans provided by Chevron. Minimum commitments for 2027-29 have been established on the basis of a 2-rig program, Hess Midstream said in a separate release. Hess Midstream said the revised commercial arrangements are expected to support Chevron’s investment in the Bakken. Chevron expects to sustain Bakken production through continued technology deployment and operational improvements drawn from its global shale and tight-oil portfolio. Hess Midstream expects Bakken throughput volumes to decline about 5% in 2027 as a result of reduced Chevron activity and then generally plateau beginning in 2028. DJ Basin assets Hess Midstream will acquire Chevron’s crude oil and natural gas

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DNV: Energy-importing countries scaling clean energy 3x faster than exporters

OGJ: Energy security is becoming a major driver of the energy transition. The DNV outlook found that energy-importing countries are scaling clean energy three times faster than energy-exporting countries. From the perspective of an oil and gas operator, what is the most important implication of that divergence? Alvik: I think it’s important to realize that the customers of the oil and gas business are, longer term, trying to avoid being dependent on that commodity. If you’re exporting oil like the US or Norway or Canada or Brazil or Saudi, your key strategy is to meet the shortfall of Middle East oil and gas as much as possible. But for the importer, both the vulnerability of the supply chains and the price hikes, as well as the attacks on the infrastructure, are demonstrating how vulnerable you are when you are importing any sort of critical commodity to your country, like energy is. And on top of that, you have the industry. If you have a large renewable industry, you would like that to grow. China is the best example. If you have a large oil and gas industry, you would like [that] to grow. The US is a major example of that. So, there are diverging interests leading to diverging results between importers and exporters, and this is clearer than ever. OGJ: Definitely. The Strait of Hormuz is a big part of what’s put energy security back at the center of the conversation. Do you think the current disruption represents a temporary shock to energy markets, or could it fundamentally change how governments and companies think about their exposure to imported oil and gas? Alvik: I think it could fundamentally change. The same way as the Russian attack on Ukraine dramatically changed how Germany, or Poland, or other countries were looking

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Cenovus to build oil sands business via Athabasca acquisition

“These are long-life assets located in an area where Cenovus already has a deep operating experience and strong understanding of the resource,” McKenzie said on a conference call with analysts. “They also represent one of the only remaining large-scale opportunities to add meaningful thermal reserves, resource and future development inventory within the core of the oil sands.” Among Cenovus’ growth plans is accelerating production from Athabasca’s Corner project northwest of Christina Lake by consolidating two planned expansion phases. Doing so would let Corner’s output grow to 40,000 boe/d by 2032, 3 years faster than today’s forecast. Also in the cards are efficiency projects at Athabasca’s Leismer assets that would grow production by half to about 60,000 boe/d by 2032. Michael Berger, a senior analyst at Enverus Intelligence Research, said buying Athabasca “refills Cenovus’ growth pipeline” as it relates to future production growth. The deal, he added, also “represents an escalation in oil sands deal valuations” that reflects the energy sector’s changing global dynamics. “The higher price paid by Cenovus compared to historical deals reflects a rerating of Canadian oil sands producers higher as the industry’s critical position in providing long-term oil resource in a resource-constrained world grows sharper,” Berger wrote in a commentary analyzing the acquisition plan. “While U.S. plays offer up to a decade of core inventory, the oil sands hold multiple decades. Additionally, scarcity always demands a premium and logical large-scale oil sands acquisition targets have been significantly drawn down.” The planned transaction is expected to be roughly 70% funded by cash and 30% by Cenovus shares and should close by the end of this year. It also will consolidate ownership of Duvernay Energy Corp., an oil-weighted joint venture the two companies created nearly 3 years ago that today operates more than 170 locations on roughly 90,000 net

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Energy Transfer expands Delaware basin footprint with $2.625 billion deal

@import url(‘https://fonts.googleapis.com/css2?family=Inter:wght@100..900&display=swap’); .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; } 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; color: color-mix(in srgb, currentColor 60%, transparent); } #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; } Energy Transfer LP has agreed to acquire Vaquero Midstream LLC in a $2.625-billion bolt-on deal to add natural gas gathering and processing assets in the southern Delaware basin of the Texas Permian.   Vaquero holds a 300-mile pipeline network that serves operators across the basin, including in Loving, Reeves, Ward, and Winkler Counties, Tex., and operates the Caymus processing complex in Coyanosa, Pecos County, Tex., near Waha, which includes three processing trains with 675 MMcfd capacity. The company owns acreage to support construction of two additional trains that could increase total processing capacity at the site to about 1.2 bcfd. <!–> –> <!–> April 29, 2025 ]–> <!–> The Vaquero assets are interconnected with Energy Transfer’s downstream natural gas and NGL infrastructure, which Energy Transfer said could generate incremental revenue opportunities through pipeline transportation, fractionation, terminalling, and export services. Vaquero is supported by long-term, fee-based contracts with average remaining life of 10 years, and 100,000 dedicated acres. Consideration for the deal, which is expected to close in this year’s fourth quarter subject to customary conditions, consists of $1.95 billion in cash and about 33.3 million newly issued Energy Transfer common units. ]–>

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Brookfield’s AREP Deal Extends the AI Infrastructure Stack to Powered Land

The transaction goes beyond Brookfield investing in another portfolio of buildings. It is investing in a developer whose principal product increasingly begins before the building, with land, entitlements, substations, transmission access and utility capacity. PowerHouse Has Become a Gigawatt-Scale Development Platform PowerHouse was founded with a strong Northern Virginia orientation, but its development map now stretches well beyond Data Center Alley as its current portfolio includes projects in Virginia, Texas, Pennsylvania, North Carolina, Nevada, Indiana, Illinois and Kentucky. The company lists 515 MW across its Northern VA Ashburn properties, another 900 MW at its PH 95 development in Spotsylvania, 1.35 GW in Carlisle, Pennsylvania, 1.8 GW at Joliet, Illinois, and substantial campuses across multiple Texas and Indiana locations. The various projects do a good job of illustrating how the definition of a hyperscale development site is changing. At PowerHouse Arcola in Loudoun County, Virginia, PowerHouse announced a long-term hyperscale lease earlier this year. The 37-acre campus includes two planned data center buildings totaling approximately 615,000 square feet and is designed for up to 120 MW of utility capacity. PowerHouse emphasizes not only the buildings but the campus’s on-site substation, fiber access, power security and support for high-density GPU and liquid-cooled deployments. In Texas, it might be that everything really is bigger, and PowerHouse’s Grand Prairie development covers approximately 810 acres and 8.5 million developable square feet. Its project page cites maximum utility power of 1.8 GW and a development schedule extending through 2029 and beyond. The Texas development plans also include a proposed Circle T campus in Westlake outside Fort Worth, which calls for as many as four roughly 300,000-square-foot facilities totaling approximately 300 MW. According to reporting on local filings, PowerHouse has funded a 350-MW Oncor substation intended to serve the campus and the town’s pump station. The company’s development in

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AI Is Turning Energy Storage Into Active Power Infrastructure

AI Turns the Power Problem Into a Transient Problem At the heart of the issue is the changing behavior of the IT load. In a conventional data center, DeLattre said, large numbers of independent loads create a relatively predictable electrical profile. AI clusters introduce much greater synchronization. As GPUs begin processing a common workload, large numbers of accelerators can increase their power consumption simultaneously. Instead of asking the electrical infrastructure to serve a relatively smooth load, the facility can experience fast power pulses moving through the system. Hybrid supercapacitors are intended to act as a buffer between that dynamic compute load and the infrastructure supplying it. During an upward transient, storage provides some of the incremental power demanded by the IT load. When demand falls, the storage system recharges. The objective is not to create additional energy. It is to keep every upstream component — from the UPS to generators and ultimately the utility connection — from having to respond directly to every rapid change taking place inside the AI cluster. From the perspective of the upstream power source, DeLattre said, the goal is to make a highly dynamic AI load appear significantly smoother. That distinction between energy and power is central to Musashi’s argument for hybrid supercapacitors. A conventional supercapacitor, also known as an electric double-layer capacitor, can deliver very high power almost instantly but stores relatively little energy. A lithium-ion battery can store considerably more energy, but DeLattre argues that it is less suited to being aggressively charged and discharged tens or hundreds of thousands of times. Musashi’s hybrid technology uses a capacitor architecture with a lithium-doped graphite electrode intended to increase energy density while preserving the fast response and high cycling capability associated with capacitors. DeLattre reduces the distinction to a simple formulation. “Batteries are very good

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AI Infrastructure’s Next Phase: Capital, Power and the Right to Build

Capital Is Becoming Infrastructure Samsung’s $1 billion commitment to Helix Digital Infrastructure offered one of the clearest examples yet of how the capital structure surrounding AI data centers is changing. Helix was formed by KKR as an AI infrastructure platform with more than $10 billion already committed by founding investors including KKR, the Kuwait Investment Authority, NVIDIA and Vistra. Samsung’s new commitment pushes that capital base still higher. But the composition of the partnership may be more significant than another billion dollars being added to the AI infrastructure ledger. Helix is intended to invest across hyperscale data centers, power generation and transmission, fiber and other connectivity infrastructure. Samsung, meanwhile, brings capabilities extending across advanced technology, construction, energy storage and cooling. This is not simply capital chasing data center returns. It increasingly resembles an attempt to assemble the data center, energy and technology supply chain inside a single investment ecosystem. That distinction is important, because one of the defining problems of the current buildout is that capital by itself does not produce capacity. Billions of dollars can be committed long before transformers arrive, transmission is constructed, generation is secured or a campus is commissioned. The increasingly valuable infrastructure platform is therefore the one capable of controlling more of those dependencies. Lambda demonstrated another side of that evolution last week with the closing of a $1.008 billion delayed-draw term loan supporting three committed customer deployments across multiple data centers. The financing received investment-grade ratings from Morningstar DBRS and Moody’s and carries a 6.78% fixed interest rate. More importantly, it is secured by both the GPU infrastructure being financed and contracted cash flows from two investment-grade customers. Capital is drawn as infrastructure reaches commissioning milestones rather than simply being handed to Lambda upfront. That begins to make AI compute look less like speculative

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Micro data center company rolls out stackable data center for edge and AI

Stack runs on Zella Sense, a monitoring, control, and automation layer built into every Zella DC cabinet. It tracks power, cooling, servers, and suspicious activity, while monitoring things like temperature, humidity, smoke, motion, water, and doors through sensors. The system runs over SNMP, Modbus, and a full API, with email alerting and local, LDAP, RADIUS, or TACACS+ authentication. That means an edge location can be remotely monitored without requiring local staff. It also comes with access control and fire protection. Zella Stack is an indoor-only offering. Zella DC sells Zella Outback as its standalone, ruggedized outdoor micro data center, and the company says an outdoor version of Stack is planned for the second half of 2027.

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Data Center Jobs: Engineering, Construction, Commissioning, Sales, Field Service and Facility Tech Jobs Available in Major Data Center Hotspots

Each month Data Center Frontier, in partnership with Pkaza, posts some of the hottest data center career opportunities in the market. Here’s a look at some of the latest data center jobs posted on the Data Center Frontier jobs board, powered by Pkaza Critical Facilities Recruiting. Looking for Data Center Candidates? Check out Pkaza’s Active Candidate / Featured Candidate Hotlist  Lead Mechanical Engineer – Data Center DesignNew York, NY/Remote This position is also available in: Denver, CO; Indianapolis, IN; Cedar Rapids, IA; Austin, TX; White Plains, NY; Dallas, TX; Richmond, VA; Ashburn, VA; Charlotte, NC; Atlanta, GA; Phoenix, AZ; Salt Lake City, UT; Kansas City, MO; Chicago, IL; Los Angeles, CA or San Jose, CA. Our client is a leading engineering design and commissioning company that is a subject matter expert in the data center space. They will provide design coordination and construction administration, consulting and management support for the data center / mission critical facilities space with the mindset to provide reliability, energy efficiency, and sustainable design expertise when providing these consulting services for enterprise, colocation and hyperscale companies. This career-growth minded opportunity offers exciting projects with leading-edge technology and innovation as well as competitive salaries and benefits. Electrical Commissioning Agent – Data Centers Austin, TX (limited travel) Non-Traveling CxA positions available in: Indianapolis, IN; Cedar Rapids, IA; Phoenix, AZ and Columbus, OH. Traveling CxA based near any major airport, otherwise traveling to: New York, NY; White Plains, NY; Dallas, TX; Richmond, VA; Montvale, NJ; Charlotte, NC; Salt Lake City, UT; Kansas City, MO; Chesterton, IN or Chicago, IL. ***Also looking for a Lead EE and ME CxA Agents and CxA PMs. *** This opportunity is with a leading EPC company of data center design / build / commissioning solutions. This company provides a complete life cycle of solutions that are custom-fit

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Startup doxx.net hands the network controls to AI

“The whole thing is run completely by AI, so behind the scenes, I mean, it’s a network with 31 locations around the world, and internally there’s a mesh network, and I can’t, as a human being, manage all of this by myself,” Lyon said. Lyon said the team modeled every site, down to the wire and the optic, in a virtual model before building. An infrastructure management system running the company’s own AI on its own hardware then ordered the installation. It orchestrated shipping and delivery through data center APIs. Human technicians performed the remote smart hands installations. The company also built tools for agents to work with users and with the network. An agent gateway gives an AI agent an identity in the doxx.net chat app. The user pastes a credential into the agent. The agent obtains its certificate and appears in the user’s chat. Users can create group chats with several agents. In one example, Lyon said one agent runs BGP while others handle other tasks.

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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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