Calpine to sell 3.5 GW in PJM to avoid market power concerns from Constellation merger

Stay Ahead, Stay ONMINE

Calpine to sell 3.5 GW in PJM to avoid market power concerns from Constellation merger

As part of Constellation Energy’s plan to buy Calpine, Calpine will sell power plants in the PJM Interconnection totaling 3,546 MW to allay concerns the combined company could use its market power to affect power prices, the companies told the Federal Energy Regulatory Commission on Friday. “Applicants have committed to a proposed divestiture plan that […]

“Applicants have committed to a proposed divestiture plan that fully addresses even theoretical competitive concerns to avoid a potentially protracted proceeding and speed the government approval process,” Constellation and Calpine said in their application for the deal at FERC.

Constellation intends to buy Calpine in a deal with an equity purchase price of $16.4 billion, the independent power producers said Jan. 10. The combined entity will own almost 60 GW of nuclear, natural gas, geothermal, hydro, wind, solar, cogeneration and battery storage. Calpine owns 27 GW, according to the application.

The companies currently own 25.5 GW in PJM, where there is 177 GW of installed capacity, according to the application.

Under a plan to mitigate any potential market power, Houston-based Calpine will sell four power plants in eastern PJM through a bidding process, according to the application. They are the:

1,134-MW, gas-fired combined cycle Bethlehem Energy Center in Bethlehem, Pennsylvania;
569-MW dual-fuel, combined cycle York Energy Center Unit 1 in Peach Bottom Township, Pennsylvania;
1,136-MW dual-fuel combined cycle Hay Road Energy Center near Wilmington, Delaware; and,
707-MW gas-fired, simple cycle Edge Moor Energy Center in Wilmington, Delaware.

The power plants are “valuable, high-performing [and] dispatchable,” Constellation, based in Baltimore, and Calpine said. The companies said they would sell the plants within a year of closing their deal.

The combined company will have geographically diverse operations across the United States, Constellation and Calpine told FERC. “This will allow the company to better serve customers with a broader array of energy and sustainability products to power homes and businesses at competitive prices,” the companies said.

Constellation and Calpine asked FERC to approve the deal by May 27. They expect the transaction will be completed in the fourth quarter after it is approved by FERC, the U.S. Department of Justice, the New York Public Service Commission and the Public Utility Commission of Texas.

Stay Ahead

Explore More Insights

Stay ahead with more perspectives on cutting-edge power, infrastructure, energy, bitcoin and AI solutions. Explore these articles to uncover strategies and insights shaping the future of industries.

AI-powered automation set for gains in 2025

AI-driven automation could help close staffing gaps Research firm Enterprise Management Associates (EMA), too, cites the infrastructure complexity that has resulted from hybrid and multi-cloud networks and the need for more advanced automation. “EMA research finds that hybrid clouds are particularly problematic for network operations teams today. They’re struggling with

UK regulator may investigate AWS and Microsoft cloud businesses

If the various points made in the inquiry are dissected, said Maisto, “we can argue that: a) it is not actually true that cloud customers face a limited choice of providers as there are plenty of cloud vendors; b) it is unlikely that the US hyperscalers may not reflect the

Unknown threat actor targeting Juniper routers with backdoor: Report

“If you are affected or compromised, then this becomes such a challenge,” he added. “First, it’s re-imaging or, in some cases, hardware replacement, depending on the depth of the infection. Most of the time, deleting and replacing the firmware from scratch is enough, but Juniper may be of more assistance.

IBM targets mainframe customers with prebuilt AI training modules

If a customer has an existing model or LLM, synthetic data provides additional data that is rich, labeled, and diverse to fine-tune the AI model. If a client does not have a model, the Synthetic Data Sets are designed to offer quick and privacy-compliant training data to create models from

These 11 clean energy start-ups will share £500,000 from Aberdeen’s Net Zero Technology Centre

The Net Zero Technology Centre (NZTC) has unveiled the next cohort of its accelerator program for emerging companies in the clean energy sector. The TechX clean energy accelerator has accepted 11 firms that are developing technologies in alternative fuels, CCUS, as well as turning plastic waste into low-carbon hydrogen into its 2025 scheme. Each of the selected start-ups will receive a share of £500,000 in grant funding, tailored mentorship and access to the NZTC’s industry network, including programme sponsor ConocoPhillips. TechX acts to fast-track the development of clean energy tech, providing a pathway to field trials and industry partnerships in order to shorten the time it takes for innovations to reach the market. The 18-week programme culminates in NZTC’s annual demo day, where the start-ups will present their final pitches to investors and industry leaders, with the opportunity to win additional cash prizes. Upon completion, participants will also gain up to two years of growth support, including continued access to NZTC’s network and co-working facilities to help scale their businesses. Since its launch in 2016/17, Aberdeen-based NZTC said TechX has supported nearly 70 start-ups to date. The selected start-ups are: AED Energy: Low-cost thermal energy storage integrated with thermophotovoltaic cells, delivering combined heat and power. CGEN Engineering: A lightweight, modular generator system that reduces costs, simplifies maintenance, and enhances scalability for the wind sector. EBB:FLOW: A scalable, low-cost wave energy converter using flexible, mass-manufacturable dielectric fluid generator cells for efficient power generation and lower costs. Entropyst: Methane pyrolysis reactor to convert methane into ‘turquoise’ hydrogen and solid carbon nanotubes. Global OTEC: Thermal energy conversion system to harness ocean temperature gradients to provide scalable, low-carbon power for offshore operations, reducing emissions. Kondor: A software platform using agile digital twins and AI to deliver precise, actionable insights to increase energy efficiency in oil

Trump’s Transport Secretary Orders Fuel-Economy Rule Rewrite

Newly appointed Transportation Secretary Sean Duffy ordered a rewrite of more stringent US fuel-economy rules, following through on one of President Donald Trump’s first directives after he retook the White House. The memorandum Duffy signed in the first act after his swearing in Tuesday directs the National Highway Traffic Safety Administration to immediately review and reconsider all existing fuel-economy standards for vehicles produced from the 2022 model year onward. He told NHTSA to propose rescinding or replacing the standards so that they’re in line with the administration’s fossil fuel-favoring energy policy. Duffy, a former US congressman and Fox News contributor, portrayed the action as removing government overreach by former President Joe Biden that had driven up the cost of new cars. The Biden administration’s standards require automakers to reach an average of 50.4 miles per gallon across their new-car fleets by the 2031 model year. In addition to wanting to unwind Biden-era fuel economy rules, Trump has ordered his administration to consider eliminating subsidies and other policies aimed at boosting electric vehicles. Automakers plowed billions of dollars into manufacturing EVs and batteries in the US after Biden signed the Inflation Reduction Act into law in 2022. Those investments already were showing signs of strain due to tepid demand for plug-in models that are still more expensive than those powered by gasoline-burning engines. Since Trump’s victory in the November election, automakers have made a series of moves reflecting expectations for less regulatory pressure to move away from gas-powered cars and trucks. Stellantis NV postponed its first all-electric Ram pickup, pulled back from plans to lay off workers at a Jeep sport utility vehicle plant in Ohio and recommitted to building a new midsize truck at a factory in Illinois. Volkswagen AG told Automotive News on Tuesday that it no longer plans to bring its ID.7 electric sedan to the US market. The publication also has reported that Stellantis paused work on an electric

WTI Slips Below $73 as Canada-Mexico Tariff Uncertainty Grows

Oil fell after President Donald Trump’s pick for commerce secretary suggested tariffs on Canada and Mexico aren’t a done deal. West Texas Intermediate slid 1.6% to settle below $73 a barrel after Howard Lutnick said that the US’s two biggest trading partners can avoid new levies if they take action on illegal migration and fentanyl flows. Expectations that the tariffs will go into effect this weekend had earlier spurred a rally in oil futures and briefly pushed the discount for Canadian crude to the widest in six months, before narrowing after Lutnick’s remarks. “Crude prices keep dancing to the rhythm of Trump’s tariff orchestra, with Canada tariffs in focus as they go into effect on Saturday,” said Ole Hansen, head of commodities strategy at Saxo Bank. Wednesday’s price decline represents “a sour sentiment across an overall rangebound market,” he added. Crude started 2025 higher as US sanctions against Russia lifted prices, but trade-war concerns and poor economic data from China have largely erased the year’s gains. The rollout of Trump’s policy agenda has the potential to roil markets further, with the US president calling on OPEC+ to help lower crude prices. The producer cartel is set to discuss Trump’s plans to increase US oil production at its next meeting on Feb. 3, Tass reported, citing Kazakhstan’s Energy Minister Almassadam Satkaliyev. Traders also digested a more hawkish-than-anticipated decision by the Federal Reserve to hold rates steady, dimming the outlook for oil demand. Oil Prices: WTI for March delivery decreased 1.6% to settle at $72.62 a barrel in New York. Brent for March settlement dipped 1.2% to settle at $76.58 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

Trump Freeze Targets Biden’s Green Bank, EV Tax Credits And More

A $400 billion green bank for clean energy projects and a popular consumer tax credit for electric vehicles are among items being targeted for review under a government-wide spending freeze ordered by the Trump administration. The initiatives are listed in a 52-page document from the White House Office of Management and Budget, seen by Bloomberg News, that details hundreds of programs whose funding is being scrutinized by the White House after it directed the government to temporarily pause spending. The Office of Management and Budget issued the sweeping directive Monday as part of the new president’s aim to overhaul the federal government to align it with the incoming administration’s priorities, which have included halting foreign aid, promoting liquefied natural gas exports and shuttering diversity programs. A federal judge in Washington on Tuesday evening temporarily halted the administration from enforcing the directive. The list includes the Energy Department’s Loan Programs Office, which swelled to $400 billion in financing power under President Joe Biden and his signature climate law, the Inflation Reduction Act. The lending program has nearly $47 billion in conditional commitments to companies in addition to $60.6 billion in loans and loan guarantees that have been granted, including to California utility PG&E Corp. and biofuel maker Calumet Inc. Also being eyed is a program known as the Advanced Research Projects Agency- Energy, or ARPA-E that has spent billions funding projects meant to achieve technological breakthroughs. An Energy Department spokesman confirmed Tuesday the agency is conducting a department-wide review of spending “to ensure all activities are consistent with President Trump’s executive orders and priorities.” A slew of tax credits administered by the Treasury Department also made the list, including a $7,500 credit for the purchase of electric vehicles that has been targeted by Trump. But tax breaks for nuclear power as well as subsidies

Charging Forward: Northern Ireland pumped hydro plans, Centrica’s Rough uncertainty and the latest battery storage updates

In this week’s Charging Forward, Mutual Energy is progressing plans for a pumped storage hydro scheme in Northern Ireland, Chris Stark flags investment support for UK hydrogen storage and the latest battery storage updates. This week’s headlines: Northern Ireland pumped hydro storage plans Rough uncertainty as Stark backs hydrogen storage UK sees slowdown in BESS as Irish market grows Innova approved for 1 GW Yorkshire BESS Elgin buys Amberside Energy project pipeline RES approval for 45 MW Scottish BESS Ridge Clean Energy progresses Scottish wind and storage project West Midlands battery hub secures £23m boost International news: World’s largest grid battery catches fire in California and UAE launches massive baseload solar and storage project Northern Ireland pumped hydro plans Belfast-headquartered gas and transmission operator Mutual Energy is leading a feasibility study into a pumped storage hydropower scheme in Northern Ireland. Located near Belfast Lough, the Higher Ground NI project would be the first pumped hydro scheme in Northern Ireland. Costing an estimated £1 billion, the plan involves pumping seawater from Belfast Lough to a new reservoir near Carrickfergus using a 4km tunnel. Mutual Energy chief executive Paddy Larkin told the Irish News the project could store close to 3 GWh of excess renewable energy capacity. If it goes ahead, the project would be one of the largest energy infrastructure projects in Northern Ireland for more than 50 years. Most pumped storage hydro project use freshwater reserves, with several schemes currently in development in Scotland close to Loch Ness. However, according to Mutual Energy a freshwater scheme is unlikely to be feasible in Northern Ireland due to the remote location of suitable sites. There are also challenges relating to poor grid infrastructure in the region, and using seawater will allow the firm to locate the project closer to Greater Belfast. Japan developed the

Trump funding freeze leaves IIJA, IRA projects in limbo

Last week, President Donald Trump told federal agencies to stop disbursing Infrastructure Investment and Jobs Act and Inflation Reduction Act funding, including money that Congress already authorized. The move has thrown climate and infrastructure projects at various stages of development into uncertainty, as his agenda regarding federal government contracts and grants continues to rapidly evolve. Trump’s Jan. 20 “Unleashing American Energy” order to pause and review funding processes has “significant implications for the implementation of the IIJA and IRA,” according to Washington, D.C.-based law firm Crowell, and may lead to project delays, terminations and broader economic uncertainty. Its precise implications may not be fully understood for months, “and this uncertainty alone is likely to disrupt infrastructure projects and give rise to claims,” according to an alert Crowell partners shared with clients Monday. “Whether the pause is temporary or becomes permanent, this action potentially could halt billions of dollars in obligated funding for infrastructure projects that already are underway, including those already under construction,” according to Crowell. Another major announcement this week around funding has led to more confusion. A Monday internal memo from the Office of Management and Budget ordered a pause on all federal grants and loans, starting at 5 p.m. Tuesday. Federal agencies must temporarily halt funding and agency activities that may be implicated by the executive orders, “including, but not limited to, financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal,” according to the memo. A federal judge on Tuesday temporarily blocked the effort, CBS News reported. U.S. District Judge Loren L. AliKhan’s stay is in effect until Feb. 3 while she considers arguments from the U.S. government and the plaintiffs in the case, a nonprofit coalition that includes the National Council of Nonprofits and the American Public Health Association. There

Verizon brings AI suite to enterprise infrastructure customers

Verizon Business has launched AI Connect, an integrated suite of products designed to let businesses deploy generative artificial intelligence (AI) workloads at scale. Verizon is building its AI ecosystem by repurposing its existing infrastructure assets in its intelligent and programmable network, which consists of fiber, edge networking, and data center assets, along with its metro and long-haul fiber, ILEC and Fios footprint, its metro network build-out, lit and dark fiber services, and 5G network. Verizon believes that the drive toward real-time decision-making using inferencing will be what drives demand for additional computing power. The company cites a McKinsey report, which states that 60% to 70% of AI workloads are expected to shift to real-time inference by 2030. That will create an urgent need for low-latency connectivity, compute and security at the edge beyond current demand.

Trump’s 100% tariff threat on Taiwan chips raises cost, supply chain fears

“I don’t think we will see a near-term impact, as it takes years to build fabs, but by the end of the decade, the US share could rise by a few percentage points,” Gupta said. “It’s hard to give an exact number, but if I were to estimate, I’d say 14-15%. That isn’t a lot, but for the US to gain share, someone else must lose it, and while the US is making efforts, we see similar developments across Asia.” Yet, if Washington imposes smaller tariffs on imports from countries such as India, Japan, or Malaysia, Taiwanese chipmakers may shift production there rather than to the US, according to Stephen Ezell, vice president at the Information Technology and Innovation Foundation (ITIF). “Additionally, if the tariffs applied to Chinese chip exports were lower than for Taiwanese exports, Trump would be helping Chinese semiconductor manufacturers, whose exports to the US market would then be less expensive,” Ezell said in a recent note. “So, for this policy to have any real effect, Trump effectively must raise tariffs on all semiconductors, and that would likely lead to global tit-for-tat.” Enterprise IT faces tough choices If semiconductor tariffs drive up costs, enterprises will be forced to reassess spending priorities, potentially delaying or cutting investments in critical IT infrastructure. Rising chip prices could squeeze budgets for AI, cloud computing, and data center expansions, forcing businesses to make difficult trade-offs. “On the corporate side, hyperscalers and enterprise players need to brace for impact over the next 2-3 years if high tariffs continue along with the erosion of operating margin,” Faruqui said. “In addition, the boards and CEOs have to boldly make heavy CAPEX investment on US Soil via US and Asian partners as soon as possible to realize HVM on US soil and alleviate operating margin erosion due to

New tweak to Linux kernel could cut data center power usage by up to 30%

When network traffic is heavy, it is most efficient, and delivers the best performance, to disable interrupts and run in polling mode. But when network traffic is light, interrupt-driven processing works best, he noted. “An implementation using only polling would waste a lot of resources/energy during times of light traffic. An implementation using only interrupts becomes inefficient during times of heavy traffic. … So the biggest energy savings arise when comparing to a high-performance always-polling implementation during times of light traffic,” Karsten said. “Our mechanism automatically detects [the amount of network traffic] and switches between polling and interrupt-driven to get the best of both worlds.” In the patch cover letter, Damato described the implementation of the new parameter in more detail, noting: “this delivery mode is efficient, because it avoids softIRQ execution interfering with application processing during busy periods. It can be used with blocking epoll_wait to conserve CPU cycles during idle periods. The effect of alternating between busy and idle periods is that performance (throughput and latency) is very close to full busy polling, while CPU utilization is lower and very close to interrupt mitigation.” Added Karsten: “At the nuts and bolts level, enabling the feature requires a small tweak to applications and the setting of a system configuration variable.” And although he can’t yet quantify the energy benefits of the technique (the 30% saving cited is best case), he said, “the biggest energy savings arise when comparing to a high-performance always-polling implementation during times of light traffic.”

Macquarie’s Big Play in AI and HPC: $17+ Billion Invested Across Two Data Center Titans

Macquarie Asset Management (MAM) is making bold moves to position itself as a dominant force in the rapidly growing sectors of AI and high-performance computing (HPC). In a single week, MAM has made two pivotal investments in Applied Digital and Aligned Data Centers, committing over $17 billion to fuel innovation, growth, and capacity expansion in critical infrastructure markets across the Americas. Both deals highlight the immense demand for AI-ready and HPC-optimized data centers, underscoring the ongoing digitization of the global economy and the insatiable need for computing power to drive artificial intelligence (AI), machine learning (ML), and other resource-intensive workloads. Applied Digital Partners with Macquarie Asset Management for $5 Billion HPC Investment On January 14, Applied Digital Corporation announced what it billed as a transformative partnership with Macquarie to drive growth in HPC infrastructure. This agreement positions Applied Digital as a leading designer, builder, and operator of advanced data centers in the United States, catering to the growing demands of AI and HPC workloads. To account for the $5 billion commitment, funds managed by MAM will invest up to $900 million in Applied Digital’s Ellendale HPC Campus in North Dakota, with an additional $4.1 billion available for future HPC projects. This could support over 2 gigawatts (GW) of HPC data center development. MAM is a global asset manager overseeing approximately $633.7 billion in assets. Part of Australia-based Macquarie Group, it specializes in diverse investment solutions across real assets, real estate, credit, and equities. With its new landmark agreement with Macquarie, Applied Digital feels it is poised to redefine the HPC data center landscape, ensuring its place as a leader in the AI and HPC revolution. In terms of ownership structure, MAM’s investment here includes perpetual preferred equity and a 15% common equity interest in Applied Digital’s HPC business segment, allowing

Data Center Frontier Announces Editorial Advisory Board for 2025 DCF Trends Summit

Nashua, NH – Data Center Frontier is excited to announce its Editorial Advisory Board for the second annual Data Center Frontier Trends Summit (DCF Trends Summit), taking place August 26-28, 2025, at the Hyatt Regency Reston in Reston, Virginia. The 2025 DCF Trends Summit Editorial Advisory Board includes distinguished leaders from hyperscale and colocation operators, power and cooling solutions companies, IT and interconnection providers, and design/build/construction specialists. This year’s board has grown to include 15 esteemed executives, reflecting DCF’s commitment to providing comprehensive and diverse insights for the data center sector. This visionary group of leaders, representing the critical facets of the data center ecosystem, will guide the event’s content and programming to address the most pressing trends impacting the industry. The group’s unparalleled expertise ensures the Summit will deliver essential insights to help data center stakeholders make informed decisions in the industry’s rapidly evolving landscape. The Editorial Advisory Board for the 2025 DCF Trends Summit includes: Scott Bergs, CEO, Dark Fiber & Infrastructure (DF&I) Steven Carlini, VP, Innovation and Data Center Energy Management Business, Schneider Electric Dan Crosby, CEO, Legend Energy Advisors Rob Coyle, Director of Technical Programs, Open Compute Project (OCP) Foundation Chris Downie, CEO, Flexential Sean Farney, VP of Data Centers, Jones Lang LaSalle (JLL) Mark Freeman, VP of Marketing, Vantage Data Centers Steven Lim, SVP of Marketing & GTM Strategy, NTT Global Data Centers David McCall, VP of Innovation, QTS Data Centers Nancy Novak, Chief Innovation Officer, Compass Datacenters Karen Petersburg, VP of Construction & Development, PowerHouse Data Centers Tara Risser, Chief Business Officer, Cologix Stefan Raab, Sr. Director, Business Development – AMER, Equinix Phill Lawson-Shanks, Chief Innovation Officer, Aligned Data Centers Brenda Van der Steen, VP of Global Growth Marketing, Digital Realty “The Editorial Advisory Board for the second annual Data Center Frontier Trends Summit is

Podcast: Data Center Trends Discussion with Industry Veteran Ron Vokoun of Everus Construction Group

For this episode of the Data Center Frontier Show Podcast, DCF Editor in Chief Matt Vincent and Senior Editor David Chernicoff sat down for a far-reaching discussion with data center industry luminary Ron Vokoun, a 35-year veteran of the construction industry with a primary focus on digital infrastructure. “I got into telecom back in ’92, which led to data centers,” Vokoun said. “Probably worked on my first one around ’96 or ’97, and I’ve been involved ever since.” Currently the Director of National Market Development for Everus Construction Group, Vokoun has been involved in AFCOM, both regionally and nationally, for nearly two decades and is an emeritus content advisory board member for Data Center World. He has also written extensively for Data Center Dynamics. He added, “I’ve just always been curious—very much a learner. Being a construction guy, I often write about things I probably have no business writing about, which is always the challenge, but I’m just curious—a lifelong learner. Interestingly, [DCF founder] Rich Miller … gave me my first blogging opportunity.” Here’s a timeline of the podcast’s highlights: Introductions – Ron Vokoun shares his extensive background. He has been in the construction industry for 35 years. 1:46– On his role at Everus Construction Group and the company’s diverse services across the nation. 2:07– Vokoun reflects on his long-standing relationship with Rich Miller. He acknowledges Rich’s influence on his blogging career. 3:05 Nuclear Energy – A discussion about nuclear energy trends occurs. The importance of nuclear energy in data center construction is probed. 3:35– Natural gas is highlighted as a key trend. Its role as a gateway to hydrogen is emphasized. 3:51– The impact of recent nuclear developments is analyzed. The reopening of Three Mile Island is noted as significant. 4:55 Future Power Sources for Data Centers – Discussion turns to the

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.

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

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

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

Stay Ahead, Stay ONMINE