Stay Ahead, Stay ONMINE

China wants to restore the sea with high-tech marine ranches

A short ferry ride from the port city of Yantai, on the northeast coast of China, sits Genghai No. 1, a 12,000-metric-ton ring of oil-rig-style steel platforms, advertised as a hotel and entertainment complex. On arrival, visitors step onto docks and climb up to reach a strange offshore facility—half cruise ship, half high-tech laboratory, all laid […]

A short ferry ride from the port city of Yantai, on the northeast coast of China, sits Genghai No. 1, a 12,000-metric-ton ring of oil-rig-style steel platforms, advertised as a hotel and entertainment complex. On arrival, visitors step onto docks and climb up to reach a strange offshore facility—half cruise ship, half high-tech laboratory, all laid out around half a mile of floating walkways. Its highest point—the “glistening diamond” on Genghai No. 1’s necklace, according to China’s state news agency—is a seven-­story visitor center, designed to look like a cartoon starfish.  

Jack Klumpp, a YouTuber from Florida, became one of the first 20,000 tourists to explore Genghai’s visitor center following its opening in May 2023. In his series I’m in China with Jack, Klumpp strolls around a water park cutely decorated in Fisher-Price yellow and turquoise, and indoors, he is excited to spot the hull of China’s deep-sea submersible Jiaolong. In reality, the sea here is only about 10 meters deep, and the submersible is only a model. Its journey into the ocean’s depths is an immersive digital experience rather than real adventure, but the floor of the sub rocks and shakes under his feet like a theme park ride. 

Watching Klumpp lounge in Genghai’s luxe marine hotel, it’s hard to understand why anyone would build this tourist attraction on an offshore rig, nearly a mile out in the Bohai Strait. But the answer is at the other end of the walkway from Genghai’s tourist center, where on a smaller, more workmanlike platform, he’s taught how to cast a worm-baited line over the edge and reel in a hefty bream. 

Genghai is in fact an unusual tourist destination, one that breeds 200,000 “high-quality marine fish” each year, according to a recent interview in China Daily with Jin Haifeng, deputy general manager of Genghai Technology Company, a subsidiary of the state-owned shipbuilder Shandong Marine Group. Just a handful of them are caught by recreational fishers like Klumpp. The vast majority are released into the ocean as part of a process known as marine ranching. 

Since 2015, China has built 169 “national demonstration ranches”—including Genghai No. 1—and scores of smaller-scale facilities, which collectively have laid 67 million cubic meters of artificial reefs and planted an area the size of Manhattan with seagrass, while releasing at least 167 billion juvenile fish and shellfish into the ocean.

The Chinese government sees this work as an urgent and necessary response to the bleak reality that fisheries are collapsing both in China and worldwide, with catches off China’s coast declining 18% in less than a decade. In the face of that decline, marine ranches could offer an enticing win-win: a way to restore wild marine ecosystems while boosting fishery hauls. 

Marine ranches could offer an enticing win-win: a way to restore wild marine ecosystems while boosting fishery hauls. But before China invests billions more dollars into these projects, it must show it can get the basics right.

Genghai, which translates as “Sea Harvest,” sits atop what Jin calls an “undersea ecological oasis” constructed by developers. In the middle of the circular walkway, artificial marine habitats harbor shrimp, seaweed, and fish, including the boggle-eyed Korean rockfish and a fish with a parrot-like beak, known as the spotted knifejaw.

The facility is a next-generation showcase for the country’s ambitious plans, which call for 200 pilot projects by 2025. It’s a 5G-enabled, AI-equipped “ecological” ranch that features submarine robots for underwater patrols and “intelligent breeding cages” that collect environmental data in near-real time to optimize breeding by, for example, feeding fish automatically.

In an article published by the Chinese Academy of Sciences, China’s top science institute, one high-ranking fisheries expert sketches out plans for a seductive tech-driven future where production and conservation go hand in hand: Ecological ranches ring the coastline, seagrass meadows and coral reefs regrow around them, and autonomous robots sustainably harvest mature seafood. 

But now, Chinese researchers say, is the time to take stock of lessons learned from the rapid rollout of ranching to date. Before the country invests billions more dollars into similar projects in the coming years, it must show it can get the basics right.

What, exactly, is a marine ranch? 

Developing nations have historically faced a trade-off between plundering marine resources for development and protecting ecosystems for future generations, says Cao Ling, a professor at Xiamen University in eastern China. When growing countries take more than natural ecosystems can replenish, measures like seasonal fishing bans have been the traditional way to allow fisheries to recover. Marine ranching offers an alternative to restricting fishing—a way to “really synergize environmental, economic, and social development goals,” says Cao—by actively increasing the ocean’s bounty. 

It’s now a “hot topic” in China, says Cao, who grew up on her family’s fish farm before conducting research at the University of Michigan and Stanford. In fact, “marine ranching” has become such a buzzword that it can be hard to tell what it actually means, encompassing as it does flagship facilities like Genghai No. 1 (which merge scientific research with industrial-scale aquaculture pens, recreational fishing amenities, and offshore power) and a baffling array of structures including deep-sea floating wind farms with massive fish-farming cages and 100,000-ton “mobile marine ranches”—effectively fish-breeding aircraft carriers. There are even whole islands, like the butterfly-shaped Wuzhizhou on China’s tropical south coast, that have been designated as ranching areas. 

a person in a wetsuit at sunset sitting in a net
A scuba diver finishes cleaning the nets surrounding Genghai No. 1, China’s first AI-powered “ecological” marine ranch complex.
UPI/ALAMY LIVE NEWS

To understand what a marine ranch is, it’s easiest to come back to the practice’s roots. In the early 1970s, California, Oregon, Washington, and Alaska passed laws to allow construction of facilities aimed at repairing stocks of salmon after the rivers where they traditionally bred had been decimated by pollution and hydroelectric dams. The idea was essentially twofold: to breed fish in captivity and to introduce them into safe nurseries in the Pacific. Since 1974, when the first marine ranches in the US were built off the coast of California and Oregon, ranchers have constructed artificial habitats, usually concrete reef structures, that proponents hoped could provide nursery grounds where both valuable commercial stocks and endangered marine species could be restored.

Today, fish farming is a $200 billion industry that has had a catastrophic environmental impact, blighting coastal waters with streams of fish feces, pathogens, and parasites.

Marine ranching has rarely come close to fulfilling this potential. Eight of the 11 ranches that opened in the US in the 1970s were reportedly shuttered by 1990, their private investors having struggled to turn a profit. Meanwhile, European nations like Norway spent big on attempts to restock commercially valuable species like cod before abandoning the efforts because so few introduced fish survived in the wild. Japan, which has more ranches than any other country, made big profits with scallop ranching. But a long-term analysis of Japan’s policies estimated that all other schemes involving restocking the ocean were unprofitable. Worse, it found, releasing docile, lab-bred fish into the wild could introduce genetically damaging traits into the original population. 

Today, marine ranching is often considered a weird offshoot of conventional fish farming, in which fish of a single species are fed intensively in small, enclosed pens. This type of feedlot-style aquaculture has grown massively in the last half-century. Today it’s a $200 billion industry and has had a catastrophic environmental impact, blighting coastal waters with streams of fish feces, pathogens, and parasites. 

Yet coastal nations have not been discouraged by the mediocre results of marine ranching. Many governments, especially in East Asia, see releasing millions of young fish as a cheap way for governments to show their support for hard-hit fishing communities, whose livelihoods are vanishing as fisheries teeter on the edge of collapse. At least 20 countries continue to experiment with diverse combinations of restocking and habitat enhancement—including efforts to transplant coral, reforest mangroves, and sow seagrass meadows. 

Each year at least 26 billion juvenile fish and shellfish, from 180 species, are deliberately released into the world’s oceans—three for every person on the planet. Taken collectively, these efforts amount to a great, ongoing, and little-noticed experiment on the wild marine biome.

China’s big bet

China, with a population of 1.4 billion people, is the world’s undisputed fish superpower, home to the largest fishing fleet and more than half the planet’s fish farms. The country also overwhelms all others in fish consumption, using as much as the four next-largest consumers—the US, the European Union, Japan, and India—combined and then doubled. But decades of overfishing, compounded by runaway pollution from industry and marine aquaculture, have left its coastal fisheries depleted. 

Around many Chinese coastal cities like Yantai, there is a feeling that things “could not be worse,” says Yong Chen, a professor at Stony Brook University in New York. In the temperate northern fishing grounds of the Bohai and Yellow Seas, stocks of wild fish such as the large yellow croaker—a species that’s critically endangered—have collapsed since the 1980s. By the turn of the millennium, the Bohai, a densely inhabited gulf 100 miles east of Beijing, had lost most of its large sea bass and croaker, leaving fishing communities to “fish down” the food chain. Fishing nets came up 91% lighter than they did in the 1950s, in no small part because heavy industry and this region’s petrochemical plants had left the waters too dirty to support healthy fish populations.

As a result, over the past three decades China has instituted some of the world’s strictest seasonal fishing bans; recently it has even encouraged fishermen to find other jobs. But fish populations continue to decline, and fishing communities worry for their future

Marine ranching has received a big boost from the highest levels of government; it’s considered an ideal test case for President Xi Jinping’s “ecological civilization” agenda, a strategy for environmentally sustainable long-term growth. Since 2015, ranching has been enshrined in successive Five-Year Plans, the country’s top-level planning documents—and ranch construction has been backed by an initial investment of ¥11.9 billion ($1.8 billion). China is now on track to release 30 billion juvenile fish and shellfish annually by 2025. 

So far, the practice has produced an unlikely poster child: the sea cucumber. A spiky, bottom-dwelling animal that, like Japan’s scallops, doesn’t move far from release sites, it requires little effort for ranchers to recapture. Across northern China, sea cucumbers are immensely valuable. They are, in fact, one of the most expensive dishes on menus in Yantai, where they are served chopped and braised with scallions.

Some ranches have experimented with raising multiple species, including profitable fish like sea bass and shellfish like shrimp and scallops, alongside the cucumber, which thrives in the waste that other species produce. In the northern areas of China, such as the Bohai, where the top priority is helping fishing communities recover, “a very popular [mix] is sea cucumbers, abalone, and sea urchin,” says Tian Tao, chief scientific research officer of the Liaoning Center for Marine Ranching Engineering and Science Research at Dalian Ocean University. 

Designing wild ecosystems 

Today, most ranches are geared toward enhancing fishing catches and have done little to deliver on ecological promises. According to Yang Hongsheng, a leading marine scientist at the Chinese Academy of Sciences, the mix of species that has so far been introduced has been “too simple” to produce a stable ecosystem, and ranch builders have paid “inadequate attention” to that goal. 

Marine ranch construction is typically funded by grants of around ¥20 million ($2.8 million) from China’s government, but ranches are operated by private firms. These companies earn revenue by producing seafood but have increasingly cultivated other revenue streams, like tourism and recreational fishing, which has boomed in recent years. So far, this owner-­operator model has provided few incentives to look beyond proven methods that closely resemble aquaculture—like Genghai No. 1’s enclosed deep-sea fishing cages—and has done little to encourage contributions to ocean health beyond the ranch’s footprint. “Many of the companies just want to get the money from the government,” says Zhongxin Wu, an associate professor at Dalian Ocean University who works with Tian Tao. 

Making ranches more sustainable and ecologically sound will require a rapid expansion of basic knowledge about poorly studied marine species, says Stony Brook’s Yong Chen. “For a sea cucumber, the first thing you need to know is its life history, right? How they breed, how they live, how they die,” he says. “For many key marine species, we have few ideas what temperature or conditions they prefer to breed and grow in.”

A diver swims off the shore of Wuzhizhou Island, where fish populations multiplied tenfold after artificial reefs were introduced.
YANG GUANYU/XINHUA/ALAMY

Chinese universities are world leaders in applied sciences, from agricultural research to materials science. But fundamental questions aren’t always easy to answer in China’s “quite unique” research and development environment, says Neil Loneragan, president of the Malaysia-based Asian Fisheries Society and a professor emeritus of marine science at Murdoch University in Australia. 

The central government’s controlling influence on the development of ranching, Loneragan says, means researchers must walk a tightrope between their two bosses: the academic supervisor and the party chief. Marine biologists want to understand the basics, “but researchers would have to spin that so that it’s demonstrating economic returns to industry and, hence, the benefits to the government from investment,” he says. 

Many efforts aim to address known problems in the life cycles of captive-bred fish, such as inadequate breeding rates or the tough survival odds for young fish when they reach the ocean. Studies have shown that fish in these early life stages are particularly vulnerable to environmental fluctuations like storms and recent ocean heat waves. 

One of the most radical solutions, which Zhongxin Wu is testing, would improve their fitness before they’re released from breeding tanks into the wild. Currently, Wu says, fish are simply scooped up in oxygenated plastic bags and turned loose in ocean nurseries, but there it becomes apparent that many are weak or lacking in survival skills. In response, his team is developing a set of “wild training” tools. “The main method is swimming training,” he says. In effect, the juvenile fish are forced to swim against a current, on a sort of aquatic treadmill, to help acclimate them to the demands of the wild. Another technique, he says, involves changing the water temperature and introducing some other species to prepare them for seagrass and kelp forests they’ll meet in the world outside.

Wu says better methods of habitat enhancement have the greatest potential to increase the effectiveness of marine ranching. Today, most ranches create undersea environments using precast-con­crete structures that are installed under 20 meters of water, often with a rough surface to support the growth of coral or algae. The typical Chinese ranch aims for 30,000 cubic meters of artificial reefs; in the conservation-­focused ranching area around Wuzhizhou Island, for instance, 1,000 cast-concrete reef structures were dropped around the tropical island’s shores. Fish populations have multiplied tenfold in the last decade. 

This is by far the most expensive part of China’s ranching program. According to a national evaluation coauthored by Cao Ling, 87% of China’s first $1 billion investment has gone to construct artificial reefs, with a further 5% spent on seagrass and seaweed restoration. These costs have brought both questions about the effectiveness of the efforts and a drive for innovation. Across China, some initial signs suggest that the enhancements are making a difference: Sites with artificial reefs were found to have a richer mix of commercially important species and higher biomass than adjacent sites. But Tian and Wu are investigating new approaches, including custom 3D-printed structures for endangered fish. On trial are bungalow-­size steel ziggurats with wide openings for yellowtail kingfish—a large, predatory fish that’s prized for sashimi—and arcs of barrel-­vaulted concrete, about waist height, for sea cucumbers. In recent years, structures have been specifically designed in the shape of pyramids, to divert ocean currents into oceanic “upwellings.” Nutrients that typically settle on the seafloor are instead ejected back up toward the surface. “That attracts prey for high-level predators,” says Loneragan, including giant tuna-like species that fetch high prices at restaurants.

Has China found a workable model?

So will China soon be relying on marine ranches to restock the seas? We still don’t have anywhere near enough data to say. The Qingdao Marine Conservation Society, an environmental NGO, is one of the few independent organizations systematically assessing ranches’ track records and has, says founder Songlin Wang, “failed to find sufficient independent and science-based research results that can measurably verify most marine ranches’ expected or claimed environmental and social benefits.”

One answer to the data shortfall might be the kind of new tech on display at Genghai No. 1, where robotic patrols and subsea sensors feed immediately into a massive dashboard measuring water quality, changes in the ocean environment, and fish behavior. After decades as a fairly low-tech enterprise, ranching in China has been adopting such new technologies since the beginning of the latest Five-Year Plan in 2021. The innovations promise to improve efficiency, reduce costs, and make ranches more resilient to climate fluctuations and natural disasters, according to the Chinese Academy of Sciences. 

But Yong Chen, whose lab at Stony Brook partners with Chinese researchers, is skeptical that researchers are gathering and sharing the right data. “The problem is, yes, there’s this visualization. So what?” he says. “[Marine ranching companies] are willing to invest money into this kind of infrastructure, create that kind of big screen, and people will walk in and say ‘Wow, look at that!’” he adds. “Yeah, it’s beautiful. It definitely will impress the leadership. Important people will give you money for that. But as a scientist, my question to you is: How can it help you inform your decision-making process next year?” 

Will China soon be relying on marine ranches to restock the seas? We still don’t have anywhere near enough data to say.

“Data sharing is really difficult in China,” says Cao Ling. Most data produced by private companies remains in their servers. But Cao and Chen say that governments—local or central—could facilitate more open data sharing in the interest of guiding ranch design and policy. 

But China’s central government is convinced by what it has seen and plans to scale up investment. Tian, who leads the government committee on marine ranching, says he has recently learned that the next Ten-Year Plan will aim to increase the number of pilot ranches from 200 to 350 by 2035. Each one is expected to be backed by ¥200 million ($28 million)—10 times the typical current investment. Specific policies are due to be announced next year, but he expects that ranches will no longer be funded as standalone facilities. Instead, grants will likely be given to cities like Dalian and Yantai, which can plan across land and sea and find ways to link commercial fishing with power generation and tourism while cutting pollution from industry. 

Tian has an illustration that aims to visualize the coming tech-driven ecological ranching system, a sort of “marine ranching 3.0”: a sea cove monitored by satellites and restored to such good health that orcas have returned to its fish-filled waters. It’s a near-utopian image seemingly ripped from a 1960s issue of Popular Science. There’s even stranger research that aims to see if red sea bream like the one Jack Klumpp caught can be conditioned like Pavlov’s dogs—in this case to flock to the sound of a horn, so the ocean’s harvest would literally swim into nets at the press of a button. 

So far China’s marine ranching program remains far from any of this, despite the isolated signs of success. But ultimately what matters most is to find a “balance point” between commerce and sustainability, says Cao. Take Genghai No. 1: “It’s very pretty!” she says with a laugh. “And it costs a lot for the initial investment.” If such ranches are going to contribute to China’s coming “ecological civilization,” they’ll have to prove they are delivering real gains and not just sinking more resources into a dying ocean. 

Matthew Ponsford is a freelance reporter based in London.

Shape
Shape
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.

Shape

SATORP halts processing activities at Jubail refinery

Saudi Aramco Total Refinery & Petrochemicals Co.—a joint venture of Saudi Aramco (62.5%) and TotalEnergies SE (37.5%)—has temporarily shuttered units at its 460,000 b/d full-conversion refinery complex at Jubail, on Saudi Arabia’s eastern coast, following disruptions resulting from the ongoing war in the Middle East. In an Apr. 10 update

Read More »

Intel secures Google cloud and AI infrastructure deal

“Scaling AI requires more than accelerators – it requires balanced systems. CPUs and IPUs are central to delivering the performance, efficiency and flexibility modern AI workloads demand,” said Lip-Bu Tan, CEO  of Intel in a statement. Google does offer custom Armv9-based Axion processors as an alternative to x86 based instances

Read More »

Broadcom strikes chip deals with Google, Anthropic

Anthropic said this week that the AI startup’s annual revenue run rate has now crossed $30 billion, up from about $9 billion the previous year. “We are making our most significant compute commitment to date to keep pace with our unprecedented growth,” said Krishna Rao, CFO of Anthropic, in a

Read More »

BW Energy granted 25-year extension of license offshore Gabon

BW Energy Gabon has received approval from the Ministry of Oil and Gas of the Gabonese Republic to extend the Dussafu Marin production license offshore Gabon, West Africa. The license period has been extended to 2053 from 2028, inclusive of three 5-year option periods from 2038 onwards. The prior contract was until 2038 inclusive of two 5-year option periods from 2028 onwards. The extra time “provides long-term visibility for production, investments, and reserve development” of the operator’s “core producing asset,” the company said in a release Apr. 7. Ongoing license projects include MaBoMo Phase 2, with planned first oil in second-half 2026, and the Bourdon development following its discovery last year. The timeline also “strengthens the foundation for future infrastructure‑led growth opportunities across the adjacent Niosi and Guduma licenses, both operated by BW Energy,” the company continued. The Dussafu Marin permit is a development and exploitation license with multiple discoveries and prospects lying within a proven oil and gas play fairway within Southern Gabon basin. To the northwest of the block is the Etame-Ebouri Trend, a collection of fields producing from the pre-salt Gamba and Dentale sandstones, and to the north are Lucina and M’Bya fields which produce from the syn-rift Lucina sandstones beneath the Gamba. Oil fields within the Dussafu Permit include Moubenga, Walt Whitman, Ruche, Ruche North East, Tortue, Hibiscus, and Hibiscus North. BW Energy Gabon is operator at Dussafu (73.50%) with partners Panoro Energy ASA (17.5%) and Gabon Oil Co. (9%). Dussafu.

Read More »

Santos plans development of North Slope’s Quokka Unit

Santos Ltd. has started development planning in the Quokka Unit on Alaska’s North Slope after further delineating the Nanushuk reservoir. The Quokka-1 appraisal well spudded on Jan. 1, 2026, about 6 six miles from the Mitquq-1 discovery well drilled in 2020. It was drilled to 4,787 ft TD and encountered a high-quality reservoir with about 143 ft of net oil pay in the Nanushuk formation, demonstrating an average porosity of 19%. Following a single stage fracture stimulation, the well achieved a flow rate of 2,190 bo/d. Reservoir sands correlated between the two discoveries, coupled with fluid analyses, confirm the presence of high‑quality, light‑gravity oil, supporting strong well performance and improved pricing relative to Pikka oil. Together with additional geological data, these results underpin the potential for a two‑drill‑site development with production capacity comparable to Pikka phase 1, the company said.  Rate and resource potential for the two-drill-site development is being evaluated. Resource estimation is ongoing and appraisal results will be evaluated as part of the FY26 contingent resource assessment. In FY25, Santos reported 2C contingent resources of 177 MMboe for the Quokka Unit. Based on these results, Santos has started development planning, including the initiation of key permitting activities. Santos is operator of the Quokka Unit (51%) with partner Repsol (49%).

Read More »

Fluor, Axens secure contracts for US grassroots refinery project

Fluor Corp. and Axens Group have been awarded key contracts for America First Refining’s (AFR) proposed grassroots refinery at the Port of Brownsville, Tex., advancing development of what would be the first new US refinery to be built in more than 50 years. Fluor will execute front-end engineering and design (FEED) for the project, while Axens will serve as technology licensor of core refining process technologies to be used at the site, the service providers said in separate Apr. 7 releases. The AFR refinery is designed to process more than 60 million bbl/year—or about 164,400 b/d—of US light shale crude into transportation fuels, including gasoline, diesel, and jet fuel. Contract details Without disclosing a specific value of its contract, Fluor said the scope of its FEED study will cover early-stage engineering and design required to define project execution, cost, and schedule based on a complex that will incorporate commercially proven technologies to improve efficiency and emissions performance while processing domestic shale crude. As technology licensor, Axens said it will deliver process technologies for key refining units at the site, including those for: Naphtha, diesel hydrotreating. Continuous catalytic reforming. Isomerization. Alongside supporting improved fuel-quality specifications, the unspecified technologies to be supplied for the refinery will also help to reduce overall energy consumption at the site. Axens—which confirmed its involvement since 2017 in working with AFR on early-stage development of the project—said this latest licensing agreement will also cover engineering support, equipment, catalysts, and services across the refinery’s process configuration. Project background, commercial framework Upon first announcing the project in March 2026, AFR said the proposed development came alongside an already signed 20-year offtake agreement with a global integrated oil company covering 1.2 billion bbl of US light shale crude, as well as capital investment to support construction. As part of the

Read More »

EIA: US crude inventories up 3.1 million bbl

US crude oil inventories for the week ended Apr. 3, excluding the Strategic Petroleum Reserve, increased by 3.1 million bbl from the previous week, according to data from the US Energy Information Administration (EIA). At 464.7 million bbl, US crude oil inventories are about 2% above the 5-year average for this time of year, the EIA report indicated. EIA said total motor gasoline inventories decreased by 1.6 million bbl from last week and are about 3% above the 5-year average for this time of year. Finished gasoline inventories increased while blending components inventories decreased last week. Distillate fuel inventories decreased by 3.1 million bbl last week and are about 5% below the 5-year average for this time of year. Propane-propylene inventories increased by 600,000 bbl from last week and are 71% above the 5-year average for this time of year, EIA said. US crude oil refinery inputs averaged 16.3 million b/d for the week ended Apr. 3, which was 129,000 b/d less than the previous week’s average. Refineries operated at 92% of capacity. Gasoline production decreased, averaging 9.4 million b/d. Distillate fuel production increased, averaging 5.0 million b/d. US crude oil imports averaged 6.3 million b/d, down 130,000 b/d from the previous week. Over the last 4 weeks, crude oil imports averaged about 6.6 million b/d, 9.1% more than the same 4-week period last year. Total motor gasoline imports averaged 571,000 b/d. Distillate fuel imports averaged 152,000 b/d.

Read More »

Oil prices plunge as Iran war tensions ease amid tentative Hormuz reopening

Crude oil prices plunged sharply on Apr. 7 after US President Donald Trump announced a conditional 2-week ceasefire agreement with Iran, contingent on reopening the Strait of Hormuz and restoring safe passage for energy shipments. Both Brent and WTI crude oil fell towards $95/bbl, marking their largest single-day decline since 2020. Under the agreement, Iran signaled willingness to halt attacks on shipping and allow transit through Hormuz while broader negotiations continue. The US also indicated it would assist in clearing a backlog of tankers and stabilizing maritime traffic. Benchmark crude prices initially surged above $110/bbl in early April amid fears of prolonged supply disruption after Iran effectively restricted traffic through the strait—a corridor responsible for roughly 20% of global oil flows. The blockade, triggered by escalating US-Iran hostilities, caused tanker traffic to collapse and stranded millions of barrels of crude and refined products in the region. Despite the price correction, analysts caution that supply disruptions and infrastructure damage will continue to constrain markets. The conflict has already impaired regional energy assets, including LNG infrastructure in Qatar, and forced producers across the Middle East to curtail output or delay exports. The US Energy Information Administration (EIA) warned that fuel prices may remain elevated for months even if flows normalize, citing logistical bottlenecks, depleted inventories, and continued geopolitical uncertainty. “In theory, the 10–13 million b/d of crude oil and product supply stranded behind the Strait should now be gradually released. Whether the pre-March status quo will be re-established depends entirely on whether the truce can be turned into a permanent peace during the negotiations in Pakistan,” said Tamas Varga, analyst, PVM Oil Associates. “What appears evident, at least for now, is that the current quarter, the April–June period, will be the tightest, as the scarcity of available oil, both crude and refined

Read More »

EIA: Brent crude to reach $115/bbl in second-quarter 2026

Global oil markets have entered a period of acute volatility, with prices expected to surge into second-quarter 2026 as war-driven supply disruptions in the Middle East constrain flows through the Strait of Hormuz, according to the US Energy Information Administration (EIA)’s April Short-Term Energy Outlook. The agency estimates that Brent crude averaged $103/bbl in March and will climb further to a quarterly peak of about $115/bbl in second-quarter 2026, reflecting a sharp tightening in global supply following widespread production shut-ins across key Gulf producers. The disruption stems from the effective closure of the Strait of Hormuz, a critical chokepoint that typically carries nearly 20% of global oil supply. The US-Iran war in the region has forced producers including Saudi Arabia, Iraq, Kuwait, and the UAE to curtail output significantly. EIA estimates that crude production shut-ins averaged 7.5 million b/d in March and will rise to a peak of 9.1 million b/d in April. In this outlook, EIA assumes the conflict does not persist past April and that traffic through the Strait of Hormuz gradually resumes. Under those assumptions, EIA expects production shut-ins will fall to 6.7 million b/d in May and return close to pre-conflict levels in late 2026. The scale of the outage has rapidly flipped the market from prior expectations of oversupply into a pronounced deficit, with global inventories drawing sharply during the second quarter. Despite an assumption that the conflict does not persist beyond April, the agency warns that supply chains will take months to normalize, keeping a geopolitical risk premium embedded in prices through late 2026. EIA forecasts the Brent crude oil price will fall below $90/bbl in fourth-quarter 2026 and average $76/bbl in 2027, about $23/bbl higher than in its February STEO forecast. This price forecast is highly dependent on EIA’s assumptions of both the

Read More »

OpenAI puts part of Stargate project on hold over runaway power costs

OpenAI has postponed plans to open one of the data centers central to its Stargate project. It announced its plan to open the data center in the UK with great fanfare last September, when it was regarded as a major boost for the country’s nascent AI industry, as well as proving a step up for OpenAI’s international credentials. At the time, Sam Altman, CEO of OpenAI, said, “The UK has been a longstanding pioneer of AI, and is now home to world-class researchers, millions of ChatGPT users, and a government that quickly recognized the potential of this technology.” All of that has been quietly forgotten. The plans for the data center in Northumberland, in the Northeast of England, have been put on hold, with the project ready to be revived when the conditions are ripe for major infrastructure investment, according to a report by the BBC.

Read More »

Neoclouds gain momentum in a supply-constrained world

And since they used the same hardware, both neoclouds and traditional cloud providers are subject to the same shortage problem. Component suppliers are reporting significant shortages due to demand for AI data centers and Synergy sees neoclouds also experiencing delays just like traditional cloud providers. “Demand is currently outstripping supply,” said Dinsmore. “It will take a while before that starts to come into more balance.” Among neoclouds, CoreWeave stands out as the most direct challenger to traditional hyperscale cloud providers. Meanwhile, OpenAI and Anthropic represent a distinct but increasingly important category, and that is platform-centric providers offering cloud-like access to foundational models and AI development environments. Synergy says that as demand for AI infrastructure accelerates, neoclouds are positioning themselves as focused alternatives to traditional hyperscale providers such as Amazon, Microsoft and Google.

Read More »

What is AI networking? How it adds intelligence to your infrastructure

The end goal is to make networks more reliable, efficient and performant. Enterprises are already seeing notable results when AI is applied to IT operations, including shorter deployment times, a decrease in trouble tickets, and faster time to resolution. With the help of AI, networks  will become more autonomous and self-healing (that is, able to address issues without the need for human intervention). In fact, Tier 1 and Tier 2 infrastructure is moving toward ‘no human in the loop,’ Nick Lippis, co-founder and co-chair of enterprise user community ONUG, recently told Network World. In time, humans will only need to step in for policy exceptions and high-risk decisions. “Layering in AI capabilities makes LAN management applications easier to use and more accessible across an organization,” Dell’Oro Group analyst Sian Morgan said. Gartner predicts that, by 2030, AI agents will drive most network activities, up from “minimal adoption” in 2025. The firm emphasizes that leaders who overlook the AI networking shift “risk higher MTTR [meantime to repair], rising costs, and growing security exposure.” The core components of AI networking It’s important to note that the use of AI and machine learning (ML) in network management is not new. AI for IT operations (AIOps), for instance, is a common practice that uses automation to improve broader IT operations. AI networking is specific to the network itself, covering domains including multi-cloud software, wired and wireless LAN, data center switching, SD-WAN and managed network services (MNS). The incorporation of generative AI, in particular, has brought AI networking to the fore, as enterprise leaders are rethinking every single aspect of their business, networking included.

Read More »

Aria Networks raises $125M and debuts its approach for AI-optimized networks

That embedded telemetry feeds adaptive tuning of Dynamic Load Balancing parameters, Data Center Quantized Congestion Notification (DCQCN) and failover logic without waiting for a threshold breach or a manual intervention. The platform architecture is layered. At the lowest levels, agents react in microseconds to link-level events such as transceiver flaps, rerouting leaf-spine traffic in milliseconds. At higher layers, agents make more strategic decisions about flow placement across the cluster. At the cloud layer, a large language model-based agent surfaces correlated insights to operators in natural language, allowing them to ask questions about specific jobs or alert conditions and receive context-aware responses. Karam argued that simply bolting an LLM onto an existing architecture does not deliver the same result. “If you ask it to do anything, it could hallucinate and bring down the network,” he said. “It doesn’t have any of the context or the data that’s required for this approach to be made safe.” Aria also exposes an MCP server, allowing external systems such as job schedulers and LLM routers to query network state directly and integrate it into their own decision-making. MFU and token efficiency as the target metrics Traditional networking is often evaluated in terms of bandwidth and latency. Aria is centering its platform around two metrics: Model FLOPS Utilization (MFU) and token efficiency. MFU is defined as the ratio of achieved FLOPS per accelerator to the theoretical peak. In practice, Karam said, MFU for training workloads typically runs between 33% and 45%, and inference often comes in below 30%. “The network has a major impact on the MFU, and therefore the token efficiency, because the network touches every aspect, every other component in your cluster,” Karam said.

Read More »

New v2 UALink specification aims to catch up to NVLink

But given there are no products currently available using UALink 1.0, UALink 2.0 might be viewed as a premature launch Need to play catch up David Harold, senior analyst with Jon Peddie Research, was guarded in his reaction. “While 2.0 is a significant step forward from 1.0, we need to bear in mind that even 1.0 solutions aren’t shipping yet – they aren’t due until later this year. So, Nvidia is way ahead of the open alternatives on connectivity, indeed ahead of the proprietary or Ethernet based solutions too,” he said. What this means, he added, is that non-Nvidia alternatives are currently lagging in the market. “They need to play catch up on several fronts, not just networking. … I can’t think of a single shipping product that meaningfully has advantages over a Nvidia solution,” he said. “Ultimately UALink remains desirable since it will enable heterogeneous, multi-vendor environments but it’s quite a way behind NVLink today. ” There are plenty of signs that organizations will find it hard to break free of the Nvidia dominance, however. A couple of months ago, RISC-V pioneer SiFive signed a deal with Nvidia to incorporate Nvidia NVLink Fusion into its data center products, a departure for RISC companies. According to Harold, other companies could be joining it. “Custom ASIC company MediaTek is an NVLink partner, and they told me last week that they are planning to integrate it directly into next-generation custom silicon for AI applications,” he said. “This will enable a wider range of companies to use NVLink as their high-speed interconnect.” Other options And, Harold noted, Nvidia is already looking at other options. “Nvidia is now shifting to look at the copper limit for networking speed, with an interest in using optical connectivity instead,” said Harold.

Read More »

Nvidia’s SchedMD acquisition puts open-source AI scheduling under scrutiny

Is the concern valid? Dr. Danish Faruqui, CEO of Fab Economics, a US-based AI hardware and datacenter advisory, said the risk was real. “The skepticism that Nvidia may prioritize its own hardware in future software updates, potentially delaying or under-optimizing support for rivals, is a feasible outcome,” he said. As the primary developer, Nvidia now controls Slurm’s official development roadmap and code review process, Faruqui said, “which could influence how quickly competing chips are integrated on new development or continuous improvement elements.” Owning the control plane alongside GPUs and networking infrastructure such as InfiniBand, he added, allows Nvidia to create a tightly vertically integrated stack that can lead to what he described as “shallow moats, where advanced features are only available or performant on Nvidia hardware.” One concrete test of that, industry observers say, will be how quickly Nvidia integrates support for AMD’s next-generation chips into Slurm’s codebase compared with how quickly it integrates its own forthcoming hardware and networking technologies, such as InfiniBand. Does the Bright Computing precedent hold? Analysts point to Nvidia’s 2022 acquisition of Bright Computing as a reference point, saying the software became optimized for Nvidia chips in ways that disadvantaged users of competing hardware. Nvidia disputed that characterization, saying Bright Computing supports “nearly any CPU or GPU-accelerated cluster.” Rawat said the comparison was instructive but imperfect. “Nvidia’s acquisition of Bright Computing highlights its preference for vertical integration, embedding Bright tightly into DGX and AI Factory stacks rather than maintaining a neutral, multi-vendor orchestration role,” he said. “This reflects a broader strategic pattern — Nvidia seeks to control the full-stack AI infrastructure experience.”

Read More »

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.

Read More »

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

Read More »

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

Read More »

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

Read More »

Financial services

This page brings together essential resources to help financial institutions evaluate, adopt, and scale AI in regulated environments. Whether you’re exploring early use cases or

Read More »