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Oil Prices Dive on Trump Tariffs and OPEC Surprise

Oil plunged the most since July 2022 after suffering a twin hit from President Donald Trump’s tariffs and an OPEC+ decision to increase output faster than previously announced. West Texas Intermediate futures plummeted 6.6% to settle below $67 a barrel, while global benchmark Brent dropped 6.4% to end the session near $70. Trump’s deluge of […]

Oil plunged the most since July 2022 after suffering a twin hit from President Donald Trump’s tariffs and an OPEC+ decision to increase output faster than previously announced.

West Texas Intermediate futures plummeted 6.6% to settle below $67 a barrel, while global benchmark Brent dropped 6.4% to end the session near $70.

Trump’s deluge of tariffs is creating fresh doubts about the outlook for the global economy, with levies against major crude importers such as China and India coming in more aggressive than feared. Although the administration steered away from actions that would directly affect oil markets — such as measures that would have curbed flows from Canada and Mexico — concerns that the trade war will sap global energy demand hammered prices.

Hours later, the Organization of the Petroleum Exporting Countries and its allies unexpectedly said they would add more than 400,000 barrels of daily output back to the market next month. That was three times the amount the group had previously planned to revive, signaling a significant policy shift after years of supply constraints that had supported crude prices.

The two moves sent shockwaves across oil markets, though potentially offer a win for Trump, who has repeatedly bemoaned high crude prices. While falling oil prices could ease inflationary pressures for central banks, they also underscore a wider concern about the outlook for growth that’s led firms across the industry to slash their forecasts in recent weeks.

“The perfect bearish cocktail has been mixed in Washington and in Vienna,” said Tamas Varga, an analyst at brokerage PVM Oil Associates Ltd. “The reciprocal tariffs on virtually every salient US trading partner justifiably raise the fears of recession and possibly stagflation. Economic and oil demand growth is adversely impacted.”

OPEC Shift

The bumper output boost is a big change for OPEC+, which had previously emphasized that it could pause or reverse its planned supply hikes if needed. The group’s communications have made little reference to the idea of accelerating production increases.

The policy shift follows a long period of tension within the group over certain members that have consistently flouted production limits. Kazakhstan has been a particular source of friction after it significantly exceeded its output ceiling during the startup of the expansion of its giant Tengiz oil field.

Thursday’s decision is intended to put price pressure on quota cheats, while also providing them with the opportunity to make larger compensation cuts to atone for past overproduction, delegates said, asking not to be identified as the talks were private.

In addition to internal issues, OPEC+ has also faced external pressure from Trump to cut the price of crude.

The “OPEC news is adding insult to the injury of retaliatory tariffs,” said Jon Byrne, an analyst at Strategas Securities. “Tariff news is decidedly net negative for growth, and excess supply announcement today is not helping.”

Lost Barrels

The extra supply from OPEC+ could tie into another policy priority for Trump — tighter sanctions on Iran and Venezuela.

The US president has pledged a maximum-pressure campaign to limit oil exports from both countries. He also threatened “secondary tariffs” on Russian shipments earlier this week. Higher supplies from other OPEC+ members could give him more leeway to restrict flows elsewhere.

“We think this is to replace barrels lost from tighter US sanctions on Iran, and, possibly, also lower expectations than just recently of a Ukraine ceasefire and related western sanctions relief,” Henning Gloystein, head of energy and climate at consultants Eurasia Group, said of the OPEC+ hike.

Thursday’s huge price swings, the biggest in more than two years, are also a reminder of the type of volatility that has kept some traders on the sidelines in recent months. Some of the world’s biggest commodity trading houses last month said that while the market’s outlook was weaker, both Trump and OPEC+ were adding to the uncertainty.

The eight OPEC+ countries participating in the group’s so-called voluntary cuts said they will hold monthly meetings to review market conditions, according to the group’s statement. Talks on May 5 will decide on June production levels.

Oil Prices

  • WTI for May delivery fell 6.6% to settle at $66.95 a barrel in New York.
  • Brent for June settlement declined 6.4% to settle at $70.14 a barrel.

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NetBox Labs embraces intersection of network management and AI

“NetBox is intent,” Beevers explained. “This is where network teams are documenting ‘Here is what the network and the infrastructure should look like.’ Think of intent as what is in NetBox.” With the general availability of NetBox Assurance announced this week, the platform now extends beyond documentation to address the

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9 steps to take to prepare for a quantum future

“If you’re in pharma or chemical industry, they’re using it already,” says Constellation’s Mueller. “You have to look into it,” Mueller warns. And quantum computers are already playing an important role in protein folding, he says. “Quantum qubits are taking over traditional architectures for protein folding and mapping,” he says.

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Where Next for Oil Prices?

Where next for oil prices? That’s the question Stratas Advisors looked at in a Stratas report sent to Rigzone by the Stratas team on Monday. In the report, the company highlighted that, before “recent events” it was forecasting that, during the second and third quarters, the price of Brent crude “would move in the range between $75.00 and $80.00” and the price of WTI “would move in the range between $70.00 and $75.00”. “The forecast was based on our expectation that demand would outstrip supply slightly during this period with demand growing mainly because of the improving situation in Asia (including China) coupled with strong demand in the United States,” Stratas said in the report. “From the supply side we were expecting that OPEC+ would remain cautious in unwinding previous supply cuts and non-OPEC supply would increase by less than 1.0 million barrels per day during 2025,” it added. Stratas said in the report that the biggest risk to this forecast has always been associated with the demand side and noted that that risk rested mainly with demand growth in non-OECD countries, including those in Asia. “Certainly, with the new round of announced tariffs, the demand side risk has increased notably,” Stratas warned in the report. “China is facing a dilemma, especially in the short term, because of its overdependence on exports, so fighting the tariffs with retaliatory tariffs that are likely to lead to even higher tariffs only puts these exports at more risk,” it added. “China has been gaining a share of global exports, in part, because of falling producer prices further amplified by a depreciating currency. Doubling down on this strategy could put further pressure on its lagging domestic economy because China is a major importer of energy and other commodities that are, for the most part,

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Eni Proposes $1.64 Billion Share Buyback Package

Eni SpA said it will seek shareholder approval for a share repurchase program worth EUR 1.5 billion ($1.64 billion), increasable up to EUR 3.5 billion. The program would run until April 2026. The board will put forward the plan in the company’s extraordinary shareholder meeting May 14, 2025. Under its 2025-28 “Strategic Plan”, Eni intends to distribute to shareholders 35-40 percent of annual cash flow from operations through dividends and share redemptions. “The maximum amount of shares that can be purchased under the program is no. 315 millions of shares (approximately 10 percent of Eni’s share capital)”, Eni said in an online statement. It added, “The Board of Directors has also resolved to submit a proposal to the Shareholders’ Meeting, called in extraordinary session, to cancel the treasury shares to be purchased under the new buyback Program (maximum no. 315 millions of treasury shares)”. “This cancellation will be carried out by the Board of Directors without reducing the share capital, in view of the absence of the par value of Eni’s shares, by July 2026, in one or more acts, even before the maximum number of shares authorized by the Shareholders’ Meeting has been purchased”, the state-backed company said. In another statement Eni said, “Eni’s Board of Directors, chaired by Giuseppe Zafarana, today resolved to distribute to Shareholders the fourth of the four tranches of the provision in place of the 2024 dividend from Eni S.p.A. available reserves of EUR 0.25 (compared to a total annual provision, in place of the dividend, equal to EUR 1.00) per share outstanding at the ex-dividend date as of 19 May 2025, payable on 21 May 2025, as resolved by the Shareholders’ Meeting of 15 May 2024”. In its report of annual results published February 27, 2025, Eni said it had EUR 5.1 billion in

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Starmer loosens climate targets in response to US tariffs

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Wood Secures Three-Year Contract from PDO in Oman

John Wood Group PLC (Wood) has expanded its contract order book in the Middle East, securing a three-year contract to provide specialist technical support to Petroleum Development Oman (PDO), the country’s primary oil producer. Under the contract, 65 of Wood’s engineering and project management specialists will form part of PDO’s front-end engineering design (FEED) office, delivering complex front-end energy transition and carbon capture projects for PDO, Wood said in a media release. The group will largely consist of Omani nationals, highlighting Wood’s dedication to nurturing local talent, the company said. Additionally, the team will benefit from Wood’s wide-reaching network of international experts who provide feasibility studies, pre-FEED, and FEED solutions across every phase of the oil production value chain, Wood said. “Our new contract with Petroleum Development Oman underscores our commitment to providing quality, assured delivery for our clients on their critical project investments”, Gerry Traynor, President of Eastern Hemisphere Projects at Wood, said. “Our decades of regional experience, combined with our growing portfolio, creates exciting opportunities for our people to deliver exceptional engineering and project management for energy companies like PDO that are committed to delivering a secure energy future”. This reimbursable contract win comes at a time of sustained growth for Wood in the Middle East, with the company recently celebrating $920 million worth of contract awards in the region in 2024. Wood’s contracts in the Middle East involve projects in Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE, where it recently established a new office in Sharjah. These projects include early-stage design work for Aramco in Saudi Arabia, comprehensive engineering and support for TotalEnergies in Iraq, and a flare gas reduction program that has significantly cut carbon dioxide emissions. To contact the author, email [email protected] What do you think? We’d love to hear from you, join

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Russia on Alert as Its Key Oil Grade Nears $50

The Kremlin said it’s doing everything possible to minimize the impact of a global oil price rout on Russia’s economy as the nation’s key export grade plunges toward $50 a barrel for first time in 21 months. “We are very closely monitoring the situation, which is currently characterized as extremely turbulent, tense and emotionally overloaded,” the Interfax cited Kremlin spokesman Dimitri Peskov as saying Monday. Russian authorities are working to minimize “the consequences of this international economic storm for our economy.” Crude prices are critical for Russia’s federal budget, which relied on oil and gas for almost 30 percent of its proceeeds in January-February, according to government data.  As the nation’s spending in the first two months of the year accelerated due to the war in Ukraine, any decline in revenues could put pressure on the nation’s finances.  The country’s Urals grade, by far the country’s top export stream, slumped to $52.76 a barrel at the Baltic Sea port of Primorsk on Friday, data from Argus Media show. It was last below $50 in June 2023. Russia, which leads the OPEC+ producer alliance alongside Saudi Arabia, is closely monitoring the oil price decline, which Peskov said was driven by “the US decision to introduce tariffs for most countries in the world.”   Last month, Russia’s Finance Ministry said that expected the average oil price in 2025 to be closer to $60 a barrel instead of the $70 that the country had budgeted for the year, according to Prime newswire. In that scenario, it forecast the budget deficit would increase though by no more than 1 percent of gross domestic product. Headline oil prices have collapsed in the wake of wide-ranging tariffs that the US announced last week on the nation’s trading partners, clouding the global demand outlook. On top of that, OPEC+ group is

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ScottishPower brings in HSM Offshore Energy for East Anglia Two substation work

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DARPA backs multiple quantum paths in benchmarking initiative

Nord Quantique plans to use the money to expand its team, says Julien Camirand Lemyre, the company’s president, CTO and co-founder. That’s an opportunity to accelerate the development of the technology, he says. “By extension, what this will mean for enterprise users is that quantum solutions to real-world business problems will be available sooner, due to that acceleration,” he says. “And so enterprise customers need to also accelerate how they are thinking about adoption because the advantages quantum will provide will be tangible.” Lemyre predicts that useful quantum computers will be available for enterprises before the end of the decade. “In fact, there has been tremendous progress across the entire quantum sector in recent years,” he says. “This means industry needs to begin thinking seriously about how they will integrate quantum computing into their operations over the medium term.” “We’re seeing, with the deployment of programs like the QBI in the US and investments of billions of dollars from  public and private investors globally, an increasing maturity of quantum technologies,” said Paul Terry, CEO at Photonic, which is betting on optically-linked silicon spin qubits.  “Our architecture has been designed from day one to build modular, scalable, fault-tolerant quantum systems able to be deployed in data centers,” he said. He’s not the only one to mention fault-tolerance. DARPA stressed fault-tolerance in its announcement, and its selections point to the importance of error correction for the future of quantum computing. The biggest problem with today’s quantum computers is that the number of errors increases faster than the number of qubits, making them impossible to scale up. Quantum companies are working on a variety of approaches to reduce the error rates low enough that quantum computers can get big enough to actually to real work.

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Zayo’s Fiber Bet: Scaling Long-Haul and Metro Networks for AI Data Centers

Zayo Group Holdings Inc. has emerged as one of the most aggressive fiber infrastructure players in North America, particularly in the context of AI-driven growth. With a $4 billion investment in AI-related long-haul fiber expansion, Zayo is positioning itself as a critical enabler of the AI and cloud computing boom. The company is aggressively expanding its long-haul fiber network, adding over 5,000 route miles to accommodate the anticipated 2-6X increase in AI-driven data center capacity by 2030. This initiative comes as AI workloads continue to push the limits of existing network infrastructure, particularly in long-haul connectivity. New Fiber Routes The new routes include critical connections between key AI data center hubs, such as Chicago-Columbus, Las Vegas-Reno, Atlanta-Ashburn, and Columbus-Indianapolis, among others. Additionally, Zayo is overbuilding seven existing routes to further enhance network performance, resiliency, and low-latency connectivity. This new development is a follow-on to 15 new long haul routes representing over 5300 route miles of new and expanded capacity deployed over the last five years. These route locations were selected based on expected data center growth, power availability, existing capacity constraints, and specific regional considerations. The AI Data Center Sector: A Significant Driver of Fiber Infrastructure The exponential growth of AI-driven data center demand means that the U.S. faces a potential bandwidth shortage. Zayo’s investments look to ensure that long-haul fiber capacity keeps pace with this growth, allowing AI data centers to efficiently transmit data between key markets. This is especially important as data center development locations are being driven more by land and power availability rather than proximity to market. Emerging AI data center markets get the high speed fiber they need, especially as they are moving away from expensive power regions (e.g., California, Virginia) to lower-cost locations (e.g., Ohio, Nevada, Midwest). Without the high-speed networking capabilities offered by

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Crusoe Adds 4.5 GW Natural Gas to Fuel AI, Expands Abilene Data Center to 1.2 GW

Crusoe and the Lancium Clean Campus: A New Model for Power-Optimized Compute Crusoe Energy’s 300-megawatt deployment at the Lancium Clean Campus in Abilene is a significant marker of how data center strategies are evolving to integrate more deeply with energy markets. By leveraging demand flexibility, stranded power, and renewable energy, Crusoe is following a path similar to some of the most forward-thinking projects in the data center industry. But it’s also pushing the model further—fusing AI and high-performance computing (HPC) with the next generation of power-responsive infrastructure. Here’s how Crusoe’s strategy compares to some of the industry’s most notable power-driven data center deployments: Google’s Oklahoma Data Center: Proximity to Renewable Growth A close parallel to Crusoe’s energy-centric site selection strategy is Google’s Mayes County data center in Oklahoma. Google sited its facility there to take advantage of abundant wind energy, aligning with the local power grid’s renewable capacity. Similarly, Crusoe is tapping into Texas’s deregulated energy market, optimizing for low-cost renewable power and the ability to flexibly scale compute operations in response to grid conditions. Google has also been an industry leader in time-matching workloads to renewable energy availability, something that Crusoe is enabling in real time through grid-responsive compute orchestration. Sabey Data Centers in Quincy: Low-Cost Power as a Foundation Another instructive comparison is Sabey Data Centers’ Quincy, Washington, campus, which was built around one of the most cost-effective power sources in the U.S.—abundant hydroelectric energy. Sabey’s long-term strategy has been to co-locate power-intensive compute infrastructure near predictable, low-cost energy sources. Crusoe’s project applies a similar logic but adapts it for a variable grid environment. Instead of relying on a fixed low-cost power source like hydro, Crusoe dynamically adjusts to real-time energy availability, a strategy that could become a model for future power-aware, AI-driven workloads. Compass and Aligned: Modular, Energy-Adaptive

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Executive Roundtable: Data Center Site Selection and Market Evolution in a Constrained Environment

For the third installment of our Executive Roundtable for the First Quarter of 2025, we asked our panel of seasoned industry experts about how the dynamics of data center site selection have never been more complex—or more critical to long-term success. In an industry where speed to market is paramount, operators must now navigate an increasingly constrained landscape in the age of AI, ultra cloud and hyperscale expansion, marked by fierce competition for land, tightening power availability, and evolving local regulations.  Traditional core markets such as Northern Virginia, Dallas, and Phoenix remain essential, but supply constraints and permitting challenges are prompting developers to rethink their approach. As hyperscalers and colocation providers push the boundaries of site selection strategy, secondary and edge markets are emerging as viable alternatives, driven by favorable energy economics, infrastructure investment, and shifting customer demand.  At the same time, power procurement is now reshaping the equation. With grid limitations and interconnection delays creating uncertainty in major hubs, operators are exploring new solutions, from direct utility partnerships to on-site generation with renewables, natural gas, and burgeoning modular nuclear concepts. The question now is not just where to build but how to ensure long-term operational resilience. As data center demand accelerates, operators face mounting challenges in securing suitable land, reliable power, and regulatory approvals in both established and emerging markets.  And so we asked our distinguished executive panel for the First Quarter of 2025, with grid capacity constraints, zoning complexities, and heightened competition shaping development decisions, how are companies refining their site selection strategies in Q1 2025 to balance speed to market, scalability, and sustainability? And, which North American regions are showing the greatest potential as the next wave of data center expansion takes shape?

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Podcast: iMasons CEO Santiago Suinaga on the Future of Sustainable AI Data Centers

For this episode of the DCF Show podcast, host Matt Vincent, Editor in Chief of Data Center Frontier, is joined by Santiago Suinaga, CEO of Infrastructure Masons (iMasons), to explore the urgent challenges of scaling data center construction while maintaining sustainability commitments, among other pertinent industry topics. The AI Race and Responsible Construction “Balancing scale and sustainability is key because the AI race is real,” Suinaga emphasizes. “Forecasted capacities have skyrocketed to meet AI demand. Hyperscale end users and data center developers are deploying high volumes to secure capacity in an increasingly constrained global market.” This surge in demand pressures the industry to build faster than ever before. Yet, as Suinaga notes, speed and sustainability must go hand in hand. “The industry must embrace a build fast, build smart mentality. Leveraging digital twin technology, AI-driven design optimization, and circular economy principles is critical.” Sustainability, he argues, should be embedded at every stage of new builds, from integrating low-carbon materials to optimizing energy efficiency from the outset. “We can’t afford to compromise sustainability for speed. Instead, we must integrate renewable energy sources and partner with local governments, utilities, and energy providers to accelerate responsible construction.” A key example of this thinking is peak shaving—using redundant infrastructure and idle capacities to power the grid when data center demand is low. “99.99% of the time, this excess capacity can support local communities, while ensuring the data center retains prioritized energy supply when needed.” Addressing Embodied Carbon and Supply Chain Accountability Decarbonization is a cornerstone of iMasons’ efforts, particularly through the iMasons Climate Accord. Suinaga highlights the importance of tackling embodied carbon—the emissions embedded in data center construction materials and IT hardware. “We need standardized reporting metrics and supplier accountability to drive meaningful change,” he says. “Greater transparency across the supply chain can be

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Executive Roundtable: The Changing Economics of Data Center Development

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

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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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