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Battery fires pose minor environmental risks: ACP report

Dive Brief: A third-party review of large-scale battery energy storage system fires in the United States since 2012 found that none resulted in contaminant concentrations that would prompt a public health concern or require further remediation, the American Clean Power Association said Friday. ACP also on Friday released a safety blueprint for battery energy storage […]

Dive Brief:

  • A third-party review of large-scale battery energy storage system fires in the United States since 2012 found that none resulted in contaminant concentrations that would prompt a public health concern or require further remediation, the American Clean Power Association said Friday.
  • ACP also on Friday released a safety blueprint for battery energy storage systems. The blueprint recommends that operators adopt the latest national fire safety standards, inspect systems deployed prior to those standards’ adoption, and conduct hazard mitigation and emergency response planning in partnership with state and local authorities.
  • “Every community across the country should have confidence that the battery storage facilities keeping their lights on and utility bills affordable adhere to the most rigorous safety requirements,” ACP Vice President of Energy Storage Noah Roberts said in a statement.

Dive Insight:

Conducted by the Fire & Risk Alliance for ACP, the fire safety review examined 35 documented BESS fires, including high-profile 2023 incidents in New York and Idaho that the review says consumed substantial portions of the battery arrays involved.

The FRA review cited environmental “studies [that found airborne] emissions are largely confined to the immediate vicinity of the fire, with rapid dissipation and concentration reduction in open-air scenarios.” Post-incident monitoring at battery fires in California and New York that showed “no detectable hazardous concentrations” of toxic chemicals like hydrogen fluoride and hydrogen cyanide led local authorities to lift shelter-in-place orders, FRA said.

Firefighting efforts that consume large amounts of water raise concerns about local soil and water contamination, but post-incident data “does not support the notion of widespread contamination risks,” FRA said. Allowing batteries to consume themselves and applying cooling water only as needed is a best practice for fighting lithium-ion fires. That practice, in conjunction with standard stormwater management practices, can reduce contaminant runoff, FRA said.

Some commonalities emerged in FRA’s analysis of historical BESS fires. Many incidents involved early-generation systems built before modern safety codes and without rigorous testing or integrated safety features, it states. Nearly half the incidents for which the system age was known occurred during the first six months of life, FRA said. Sixty-nine percent of incidents where operational status was known occurred during operation, compared with 17% during assembly, testing or pre-commissioning, according to the review.

The FRA review did not examine the January fire that destroyed most of a 1,000-MWh BESS facility in Moss Landing, California, because the investigation into that incident is ongoing, FRA said. Federal and state environmental authorities’ post-incident air monitoring and ongoing environmental testing by facility owner Vistra have found no apparent public health threats, but nearby residents continue to report unexplained symptoms weeks after the event, Heatmap News reported Friday.

“We hear the concerns and questions raised by residents from this incident on public safety and health,” ACP spokesperson Phil Sgro said in an email. “This incident, and its impact, is something we have not previously seen and do not anticipate in the future.”

The safety blueprint’s recommendations are “designed to prevent any future incident like Moss Landing and maximize the safety of all future and operating storage facilities,” ACP said. It characterized the Moss Landing incident as an “anomaly” due, in part, to its location inside a retrofitted turbine hall dating to the 1950s. ACP said the recommendations would “ensure that this type of event remains an anomaly.”

Those recommendations include:

  • Adopting the latest version of National Fire Protection Association Standard 855.At least six states, including New York, have already done so, and several more, including California and Texas, are considering it.
  • Inspecting some facilities built prior to NFPA 855 adoption, conducting hazard mitigation analyses, weighing the use of fire barriers or other solutions to meet fire testing requirements, and drawing up emergency response plans for all facilities.
  • Partnering with local communities and fire officials to address specific safety concerns, inform siting and permitting processes, and train state and local personnel on BESS safety.
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IBM Cloud speeds AI workloads with Intel Gaudi 3 accelerators

For businesses that need more control over their AI development, IBM says they can deploy IBM watsonx.ai software with the Intel Gaudi 3-based virtual server on IBM Cloud VPC in Q2 2025. IBM watsonx.ai includes an end-to-end AI development studio, AI developer toolkit and full AI lifecycle management for developing AI services

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Gunvor Profits Dropped 42 Pct as Energy Market Chaos Eased

Commodity trader Gunvor Group posted a 42% drop in profit in 2024, as the energy-market volatility that drove mega earnings in previous years declined. Net profit fell to $729 million last year, while revenues grew due to higher volumes of physically traded crude and refined oil products, the trading house said in a statement on Tuesday. Though full-year earnings were the fourth best in Gunvor’s history, second-half profit was the lowest since 2020. After banking billions of dollars in windfall profits as markets whipsawed following Russia’s full scale invasion of Ukraine, commodity trading giants are adapting to a new normal. Prices for gas and coal have declined from multi-year highs, while crude oil futures are trading in a tight range. In an interview with Bloomberg last week, Gunvor’s co-founder and Chief Executive Officer Torbjörn Törnqvist acknowledged that the firm had lost money on some oil trades. The CEO has overhauled Gunvor’s top leadership team in recent months. “Some areas have really performed well; some areas did not perform well. I’m open with that,” he said. On Tuesday, the trading house said it was also impacted by impairments last year, including one for its oil refinery in Rotterdam. Like its trading peers, Gunvor has been investing in assets to help stabilize long-term profits. That includes buying into a gas power station in Spain, a fuel distribution network in Pakistan and upstream natural gas production in the US. Gunvor said its equity was $6.5 billion at the end of the year. Billionaire Törnqvist owns 84.79% of the company, with the remaining shares held by employees. WHAT DO YOU THINK? Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed. MORE FROM THIS AUTHOR

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Oil Rises, but Doubts Dominate

Oil crept higher as traders braced for impending US tariff announcements and equity markets rose. West Texas Intermediate rose 0.7% to settle below $72 a barrel, while global benchmark Brent ended the session just below $75. US President Donald Trump is set to announce tariffs later Wednesday and the sweeping duties are set to take immediate effect. Several proposals are said to be under consideration, including a tiered system with a set of flat rates for different countries, as well as a more customized “reciprocal” plan. Equity markets also gained. The tariffs add to a deluge of conflicting drivers since Trump came into office. Sanctions threaten to curb supplies from Russia and Iran, while a production boost by OPEC and its allies starting this month is exacerbating concerns that a glut is looming. The US is threatening to further tighten the screws on Russia. A group of 50 Republican and Democratic senators introduced a sanctions package that would hit the third-largest oil producer and countries that buy its fuel if President Vladimir Putin refuses to engage in good-faith ceasefire negotiations with Ukraine or if he breaches any eventual agreement. “Supply risks are still top of mind,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth Group. “But with equities rallying on the prospect of a less-than-horrible tariff outcome, crude is along for the ride.” Oil Prices: WTI for May delivery rose 0.7% to settle at $71.71 a barrel in New York. Brent for June settlement climbed 0.6% to settle at $74.95 a barrel. What do you think? We’d love to hear from you, join the conversation on the Rigzone Energy Network. The Rigzone Energy Network is a new social experience created for you and all energy professionals to Speak Up about our industry, share knowledge, connect with peers

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CenterPoint Energy completes $1.2B sale of Louisiana, Mississippi gas systems

CenterPoint Energy has completed the sale of its natural gas distribution systems in Louisiana and Mississippi to Delta Utilities for $1.2 billion, the companies announced Tuesday. Sale proceeds will “support the efficient funding of what we believe is one of the most tangible long-term growth plans in the industry,” CenterPoint President and CEO Jason Wells said in a statement. “We will continue to optimize the funding of our capital investments to support safety, reliability and resiliency for the benefit of our customers and communities.” CenterPoint now has electric transmission and distribution, power generation and natural gas distribution operations that serve approximately 7 million customers in Indiana, Minnesota, Ohio and Texas. Assets sold to Delta include approximately 12,000 miles of main pipeline serving approximately 380,000 metered customers. “Completing this acquisition furthers our vision to establish modern, multi-state natural gas utilities that build stronger, more resilient communities,” Delta CEO Tim Poché said in a statement. Delta is an affiliate of private equity firm Bernhard Capital Partners. Delta is also in the final stages of acquiring Entergy’s two regulated natural gas local distribution companies in New Orleans and Baton Rouge, with the sale expected to close this summer, the company said. Entergy Louisiana’s gas business serves approximately 95,000 homes and businesses in the Baton Rouge area, and Entergy New Orleans’ gas business serves approximately 109,000 homes and businesses in New Orleans, the utility said in a February announcement of the deal. While private equity firms have been known to squeeze profit from companies before reselling, Poché told the Shreveport-Bossier City Advocate that the gas system acquisition “is not a short-term investment at all.” “We’re very attracted to natural gas, in the resiliency that it has as a very significant transition fuel within our country,” he said. For CenterPoint, the utility said in 2024 that the

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PacifiCorp aims to add 4.7 GW renewables, 1.7 GW storage by 2031

Dive Brief: PacifiCorp expects to procure through requests for proposals about 2,400 MW of solar, 2,270 MW of wind, 1,680 MW of four-hour storage and 510 MW of 100-hour iron air battery storage by the end of 2030, according to the utility company’s integrated resource plan, filed with state regulators on Monday. By the end of this year, PacifiCorp also plans to finalize a 500-MW agreement to buy electricity from TerraPower’s Natrium advanced nuclear project in Wyoming, which is set to be operating by the end of 2031, the utility company said. The cost of the project is confidential. Also, if, as expected, the Biden administration’s greenhouse gas emissions rule for power plants doesn’t take effect, PacifiCorp plans to continue operating some coal-fired generation it had previously expected to retire. The plan calls for converting 562 MW of coal-fired generation to gas, exiting 386 MW of minority-owned coal-fired capacity, and adding carbon capture equipment to two coal-fired units at the Jim Bridger power plant in Wyoming that total 700 MW. Dive Insight: PacifiCorp utilities serve about 2 million customers in California, Idaho, Oregon, Utah, Washington and Wyoming. The IRP, filed every two years with stakeholder input, provides a roadmap for supplying power to those customers over the next 20 years. The utility owns or contracts for about 5,150 MW of wind, 4,530 MW of coal, 3,850 MW of gas, 3,620 MW of solar coupled with 550 MW of storage, 1,200 MW of hydroelectric capacity and 525 MW of stand-alone storage, according to the IRP. Under its resource plan, PacifiCorp expects that coal- and gas-fired generation will account for 16% and 10% of its energy mix in 2031, down from 35% and 19% this year, respectively. Wind and solar will make up 32% and 25%, up from 24% and 10%, respectively, in

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PG&E announces microgrid awards for $43M as Sunrun joins its 2025 VPP

Dive Brief: Pacific Gas & Electric intends to award up to $43 million in grants for community microgrid projects in Northern California, the gas and electric utility said on March 26. Issued under California’s Microgrid Incentive Program, a $200 million statewide competitive grant program, the funds will support projects serving nearly 9,000 customers in Humboldt, Lake and Marin counties. Four of the projects are in tribal communities, PG&E said. Also this week, distributed energy provider Sunrun announced a “first-of-its-kind program” with PG&E to harness approximately 600 home solar-and-storage systems to provide “targeted load relief to neighborhoods identified with highly constrained electric grids,” potentially avoiding or deferring distribution grid investments. Dive Insight: In 2023, the California Public Utilities Commission approved $200 million in funding for the Microgrid Incentive Program, including $79.2 million for PG&E, $83.3 million for Southern California Edison and $17.5 million for San Diego Gas & Electric. The nine awards announced March 26 represent the first tranche of PG&E’s MIP grants, selected from a pool of 22 applicants. Applications for the second tranche open on April 3 and run through May 30, PG&E said. First-tranche projects will receive a combined $34 million for front-of-the-meter generating resources and other project costs, plus $1 million each to cover grid interconnection costs, the utility said. Eligible microgrid projects must be able to provide at least 24 consecutive hours of energy in “island mode,” interconnect on distribution lines at or below 50 kV, and have “island mode” emissions no greater than the surrounding grid, according to a PG&E fact sheet. Projects must also be located in areas vulnerable to outages due to high wildfire or earthquake risk or lower historical reliability, and serve “disadvantaged or vulnerable communities” in rural, tribal or low-income areas. The awardees will join several active microgrids in Northern and

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Energy profits hit half a trillion as consumer price cap rises

Energy profits have hit half a trillion pounds since the energy crisis despite rising consumer bills, according to an independent analysis of company reports. Researchers at the End Fuel Poverty Coalition counted the profits declared by UK energy producers such as Shell and Equinor, as well as suppliers including British Gas and grid operators such as National Grid. Nearly half of the £500 billion of profits generated by the industry since 2020, or £207bn, were made by companies involved in the gas industry. According to Scottish Renewables chief executive Claire Mack, bill payers are ‘paying the price’ for exposure to global gas markets, with renewable power likely to provide the best value for consumers. © Supplied by Scottish RenewablesScottish Renewables chief executive Claire Mack. The ceiling on energy prices, designed to protect consumers from price spikes, and enforced by energy regulator Ofgem, known as the energy price cap, rose by 6.4% this week. Trade union Unite protested against high energy prices on Tuesday, arguing that nobody should have to choose between ‘heating or eating’. Union members will campaign across 40 locations in the UK, with further protests planned in the coming two weeks. Prime minister Keir Starmer has meanwhile promised that clean power will lower energy bills, something Kemi Badenoch, leader of the Conservatives, wants to abolish – while right-wing party Reform is also trying to leverage high bills in its political campaign. Politicians have begun to engage energy companies as they seek to invest in clean technologies and lower prices. Energy secretary Ed Miliband broached talks with Centrica this month to extend the Rough gas storage facility in the North Sea beyond 2030. A spokesperson for the Department for Energy Security and Net Zero (DESNZ) said: “We’re open to discussing proposals, just as long as it provides value for

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European cloud group invests to create what it dubs “Trump-proof cloud services”

But analysts have questioned whether the Microsoft move truly addresses those European business concerns. Phil Brunkard, executive counselor at Info-Tech Research Group UK, said, commenting on last month’s announcement of the EU Data Boundary for the Microsoft Cloud,  “Microsoft says that customer data will remain stored and processed in the EU and EFTA, but doesn’t guarantee true data sovereignty.” And European companies are now rethinking what data sovereignty means to them. They are moving beyond having it refer to where the data sits to focusing on which vendors control it, and who controls them. Responding to the new Euro cloud plan, another analyst, IDC VP Dave McCarthy, saw the effort as “signaling a growing European push for data control and independence.” “US providers could face tougher competition from EU companies that leverage this tech to offer sovereignty-friendly alternatives. Although €1 million isn’t a game-changer on its own, it’s a clear sign Europe wants to build its own cloud ecosystem—potentially at the expense of US market share,” McCarthy said. “For US providers, this could mean investing in more EU-based data centers or reconfiguring systems to ensure European customers’ data stays within the region. This isn’t just a compliance checkbox. It’s a shift that could hike operational costs and complexity, especially for companies used to running centralized setups.” Adding to the potential bad news for US hyperscalers, McCarthy said that there was little reason to believe that this trend would be limited to Europe. “If Europe pulls this off, other regions might take note and push for similar sovereignty rules. US providers could find themselves adapting to a patchwork of regulations worldwide, forcing a rethink of their global strategies,” McCarthy said. “This isn’t just a European headache, it’s a preview of what could become a broader challenge.”

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Talent gap complicates cost-conscious cloud planning

The top strategy so far is what one enterprise calls the “Cloud Team.” You assemble all your people with cloud skills, and your own best software architect, and have the team examine current and proposed cloud applications, looking for a high-level approach that meets business goals. In this process, the team tries to avoid implementation specifics, focusing instead on the notion that a hybrid application has an agile cloud side and a governance-and-sovereignty data center side, and what has to be done is push functionality into the right place. The Cloud Team supporters say that an experienced application architect can deal with the cloud in abstract, without detailed knowledge of cloud tools and costs. For example, the architect can assess the value of using an event-driven versus transactional model without fixating on how either could be done. The idea is to first come up with approaches. Then, developers could work with cloud providers to map each approach to an implementation, and assess the costs, benefits, and risks. Ok, I lied about this being the top strategy—sort of, at least. It’s the only strategy that’s making much sense. The enterprises all start their cloud-reassessment journey on a different tack, but they agree it doesn’t work. The knee-jerk approach to cloud costs is to attack the implementation, not the design. What cloud features did you pick? Could you find ones that cost less? Could you perhaps shed all the special features and just host containers or VMs with no web services at all? Enterprises who try this, meaning almost all of them, report that they save less than 15% on cloud costs, a rate of savings that means roughly a five-year payback on the costs of making the application changes…if they can make them at all. Enterprises used to build all of

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Lightmatter launches photonic chips to eliminate GPU idle time in AI data centers

“Silicon photonics can transform HPC, data centers, and networking by providing greater scalability, better energy efficiency, and seamless integration with existing semiconductor manufacturing and packaging technologies,” Jagadeesan added. “Lightmatter’s recent announcement of the Passage L200 co-packaged optics and M1000 reference platform demonstrates an important step toward addressing the interconnect bandwidth and latency between accelerators in AI data centers.” The market timing appears strategic, as enterprises worldwide face increasing computational demands from AI workloads while simultaneously confronting the physical limitations of traditional semiconductor scaling. Silicon photonics offers a potential path forward as conventional approaches reach their limits. Practical applications For enterprise IT leaders, Lightmatter’s technology could impact several key areas of infrastructure planning. AI development teams could see significantly reduced training times for complex models, enabling faster iteration and deployment of AI solutions. Real-time AI applications could benefit from lower latency between processing units, improving responsiveness for time-sensitive operations. Data centers could potentially achieve higher computational density with fewer networking bottlenecks, allowing more efficient use of physical space and resources. Infrastructure costs might be optimized by more efficient utilization of expensive GPU resources, as processors spend less time waiting for data and more time computing. These benefits would be particularly valuable for financial services, healthcare, research institutions, and technology companies working with large-scale AI deployments. Organizations that rely on real-time analysis of large datasets or require rapid training and deployment of complex AI models stand to gain the most from the technology. “Silicon photonics will be a key technology for interconnects across accelerators, racks, and data center fabrics,” Jagadeesan pointed out. “Chiplets and advanced packaging will coexist and dominate intra-package communication. The key aspect is integration, that is companies who have the potential to combine photonics, chiplets, and packaging in a more efficient way will gain competitive advantage.”

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Silicon Motion rolls SSD kit to bolster AI workload performance

The kit utilizes the PCIe Dual Ported enterprise-grade SM8366 controller with support for PCIe Gen 5 x4 NVMe 2.0 and OCP 2.5 data center specifications. The 128TB SSD RDK also supports NVMe 2.0 Flexible Data Placement (FDP), a feature that allows advanced data management and improved SSD write efficiency and endurance. “Silicon Motion’s MonTitan SSD RDK offers a comprehensive solution for our customers, enabling them to rapidly develop and deploy enterprise-class SSDs tailored for AI data center and edge server applications.” said Alex Chou, senior vice president of the enterprise storage & display interface solution business at Silicon Motion. Silicon Motion doesn’t make drives, rather it makes reference design kits in different form factors that its customers use to build their own product. Its kits come in E1.S, E3.S, and U.2 form factors. The E1.S and U.2 forms mirror the M.2, which looks like a stick of gum and installs on the motherboard. There are PCI Express enclosures that hold four to six of those drives and plug into one card slot and appear to the system as a single drive.

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Executive Roundtable: Cooling Imperatives for Managing High-Density AI Workloads

Michael Lahoud, Stream Data Centers: For the past two years, Stream Data Centers has been developing a modular, configurable air and liquid cooling system that can handle the highest densities in both mediums. Based on our collaboration with customers, we see a future that still requires both cooling mediums, but with the flexibility to deploy either type as the IT stack destined for that space demands. With this necessity as a backdrop, we saw a need to develop a scalable mix-and-match front-end thermal solution that gives us the ability to late bind the equipment we need to meet our customers’ changing cooling needs. It’s well understood that liquid far outperforms air in its ability to transport heat, but further to this, with the right IT configuration, cooling fluid temperatures can also be raised, and this affords operators the ability to use economization for a greater number of hours a year. These key properties can help reduce the energy needed for the mechanical part of a data center’s operations substantially.  It should also be noted that as servers are redesigned for liquid cooling and the onboard server fans get removed or reduced in quantity, more of the critical power delivered to the server is being used for compute. This means that liquid cooling also drives an improvement in overall compute productivity despite not being noted in facility PUE metrics.  Counter to air cooling, liquid cooling certainly has some added management challenges related to fluid cleanliness, concurrent maintainability and resiliency/redundancy, but once those are accounted for, the clusters become stable, efficient and more sustainable with improved overall productivity.

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Airtel connects India with 100Tbps submarine cable

“Businesses are becoming increasingly global and digital-first, with industries such as financial services, data centers, and social media platforms relying heavily on real-time, uninterrupted data flow,” Sinha added. The 2Africa Pearls submarine cable system spans 45,000 kilometers, involving a consortium of global telecommunications leaders including Bayobab, China Mobile International, Meta, Orange, Telecom Egypt, Vodafone Group, and WIOCC. Alcatel Submarine Networks is responsible for the cable’s manufacturing and installation, the statement added. This cable system is part of a broader global effort to enhance international digital connectivity. Unlike traditional telecommunications infrastructure, the 2Africa Pearls project represents a collaborative approach to solving complex global communication challenges. “The 100 Tbps capacity of the 2Africa Pearls cable significantly surpasses most existing submarine cable systems, positioning India as a key hub for high-speed connectivity between Africa, Europe, and Asia,” said Prabhu Ram, VP for Industry Research Group at CyberMedia Research. According to Sinha, Airtel’s infrastructure now spans “over 400,000 route kilometers across 34+ cables, connecting 50 countries across five continents. This expansive infrastructure ensures businesses and individuals stay seamlessly connected, wherever they are.” Gogia further emphasizes the broader implications, noting, “What also stands out is the partnership behind this — Airtel working with Meta and center3 signals a broader shift. India is no longer just a consumer of global connectivity. We’re finally shaping the routes, not just using them.”

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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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