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Civitas Resources Weighs Sale of DJ Basin Assets

Civitas Resources Inc. is exploring a sale of part or all of its assets in the Denver-Julesburg Basin, which could be valued at more than $4 billion, people with knowledge of the matter said. The shale oil producer is working with a financial adviser to gauge buyer interest in the assets, according to the people, […]

Civitas Resources Inc. is exploring a sale of part or all of its assets in the Denver-Julesburg Basin, which could be valued at more than $4 billion, people with knowledge of the matter said.

The shale oil producer is working with a financial adviser to gauge buyer interest in the assets, according to the people, who asked not to be identified discussing confidential information. 

Civitas would be open to divesting fully from the basin in Colorado if it receives a sufficiently attractive offer, the people said. The DJ Basin assets produce roughly 160,000 barrels of oil equivalent per day. 

Shares in Civitas were up about 0.9% at 9:43 a.m. in New York, giving the company a market value of $5.2 billion.

Deliberations are ongoing and Civitas could decide not to proceed with a transaction, the people said. A representative for Denver-based Civitas declined to comment.

A sale of some or all of its assets in DJ Basin would free up cash that Civitas could use for acquisitions and to help pare its debt, which, according to data compiled by Bloomberg, stands at about $4.8 billion. Chevron Corp. and Occidental Petroleum Corp. are among the producers in the DJ Basin, which is harder to operate than most other US basins because of Colorado’s regulatory requirements. 

Civitas also controls a sizable business in the Permian Basin, the most productive and profitable oil basin in the US. That’s thanks in large part to its $4.7 billion acquisition of assets from companies controlled by NGP Energy Capital Management in 2022.

Midsize shale producers have stepped up efforts to reshape their portfolios as they fight for survival in a fast consolidating industry. Ovintiv Inc. signed a pair of deals in November to exit the Uinta Basin and bolster its activities in Canada. Also that month, Coterra Energy Inc. bulked-up in the Permian by agreeing to acquire two companies for about $4 billion.



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OPEC Receives Updated Compensation Plans

A statement posted on OPEC’s website this week announced that the OPEC Secretariat has received updated compensation plans from Iraq, the United Arab Emirates (UAE), Kazakhstan, and Oman. A table accompanying this statement showed that these compensation plans amount to a total of 221,000 barrels per day in November, 272,000

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LogicMonitor closes Catchpoint buy, targets AI observability

The acquisition combines LogicMonitor’s observability platform with Catchpoint’s internet-level intelligence, which monitors performance from thousands of global vantage points. Once integrated, Catchpoint’s synthetic monitoring, network data, and real-user monitoring will feed directly into Edwin AI, LogicMonitor’s intelligence engine. The goal is to let enterprise customers shift from reactive alerting to

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Akamai acquires Fermyon for edge computing as WebAssembly comes of age

Spin handles compilation from source to WebAssembly bytecode and manages execution on target platforms. The runtime abstracts the underlying technology while preserving WebAssembly’s performance and security characteristics. This bet on WebAssembly standards has paid off as the technology matured.  WebAssembly has evolved significantly beyond its initial browser-focused design to support

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Winners and losers in the latest Top500 supercomputer list

Winner: Slingshot-11 Slingshot-11 is a 200G proprietary interconnect developed by HPE and its Cray supercomputer subsidiary. As the number of Cray systems increases on the list, so goes the number of Slingshot-11 based systems. The total number of Slingshot-11 systems jumped from 37 and 2024 to 52 this year. Loser:

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Black Sea War Insurance Soars 250 Percent

Insurance rates for ships calling at ports in the Black Sea are surging after a series of Ukrainian attacks on vessels with links to Moscow.  The cost of covering visits to Russian ports in the Black Sea has jumped more than threefold, according to Marsh, the world’s largest insurance broker. Rates were between 0.25% and 0.3% of the value of the ship prior to the recent incidents, Marsh said.  Underwriters are now charging as much as 1% for some Ukrainian ports in the Black Sea, according to two people involved in the market, who spoke on condition of anonymity.  Ukraine has claimed attacks on two tankers from Russia’s so-called shadow fleet — vessels that operate in secrecy to skirt sanctions. There have been two other incidents also involving Moscow-linked ships since the end of last week. “For Russian port calls, underwriters are pricing in a broader range of possible strike locations and a higher likelihood of repetition,” said Munro Anderson, Head of Operations at Vessel Protect, which is part of Pen Underwriting and one of the world’s largest marine war risk insurance specialists. “As strikes escalate, so does the probability of Russian retaliation against ships connected to Ukraine.” The blasts, three of which took place in the Black Sea, come against a backdrop of strikes on wider Russian oil infrastructure that have elevated the danger of sailing in the region over the last few weeks. President Vladimir Putin said on Tuesday that Russia could retaliate.  Romania’s defense ministry said Wednesday that divers carried out a mission to neutralize a Sea Baby drone 36 miles east of the city of Constanta, underscoring the risks to shipping for Black Sea nations that aren’t Russia and Ukraine too.  Rates “have been seen to grow steadily and in direct response to further attacks which appear increasingly to

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Oil Closes Up as Peace Deal Falls Short

Oil edged up after a fresh round of US-Russia talks failed to reach a deal to end Moscow’s war in Ukraine, boosting fears that restrictions on Russian oil supply could remain in place for longer. West Texas Intermediate rose 0.5% to settle near $59, remaining within the tight range prices have been stuck in this week. The Kremlin says talks with a US delegation led by US envoys Steve Witkoff and Jared Kushner were “constructive,” but no deal was made to end the Ukraine war. The talks took place against a backdrop of recent attacks on Russia-linked tankers, with at least one ship manager saying it would stop sending vessels to the country. A deal to end Russia’s war in Ukraine could mean the end of sanctions on Russian oil in a market already staring down concerns about oversupply, providing bearish momentum for crude. Those oversupply fears weren’t heightened, however, after a US government report on Wednesday showed a 574,000 barrel build in crude stocks, smaller than an industry report showing that stockpiles increased by about 2.5 million barrels last week. Gasoline inventories rose the most since May. Geopolitical tensions are keeping the market jittery and adding a risk premium to prices, partly countering surplus concerns. That includes US rhetoric against Venezuela, a major oil producer, with US President Donald Trump suggesting the Pentagon will soon start targeting alleged drug cartels in that country with strikes on land. Oil Prices WTI for January delivery rose 0.53% to settle at $58.95 a barrel in New York. Brent for February settlement gained 0.35% to settle at $62.67 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

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Russia Oil Revenue Falls by a Third

The Russian government’s oil proceeds shrank by almost a third in November from a year ago as weaker crude prices and a stronger currency took their toll on revenues. Oil-related taxes declined by 32% to 413.7 billion rubles ($5.3 billion) last month, according to Bloomberg calculations based on finance ministry data published Wednesday. Combined oil and gas revenue fell by 34% to 530.9 billion rubles.  Lower proceeds from those industries — which have accounted for about a quarter of Russia’s budget so far this year — will ramp up pressure on state finances, burdened by military spending on the war against Ukraine that’s well into its fourth year.  Global crude prices have drifted lower ahead of an expected supply glut, and the discount for Russian blends has gotten even steeper after US President Donald Trump blacklisted the nation’s two largest producers, Rosneft PJSC and Lukoil PJSC, to pressure his counterpart Vladimir Putin to end the war in Ukraine.  On a month-to-month basis, oil revenue almost halved, reflecting the fact that one of Russia’s main oil taxes — a profit-based levy — is paid four times a year in March, April, July and October.  Russia’s finance ministry calculated oil revenue based on the average price of Urals — its key export blend — at $53.68 a barrel in October, 17% lower than a year ago. A stronger currency also contributed to lower revenue, as it means producers receive fewer rubles for each dollar earned by selling a barrel of oil. In October, the Russian currency averaged 81.0089 rubles against the US dollar, 15% stronger than a year earlier. 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

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USA Gasoline Price Falls to Lowest Level Since May 2021

The average U.S. gasoline price fell to “the lowest level since May 2021” over the weekend, Patrick De Haan, Head of Petroleum Analysis at GasBuddy, highlighted in a blog posted on the GasBuddy website on Monday. “Nearly every state saw average gas prices fall heading into Thanksgiving, with the national average dipping below $3 per gallon for several consecutive days – falling to $2.95 per gallon over the weekend, the lowest level since May 2021,” De Haan said in the blog. “With refinery maintenance largely complete and OPEC increasing oil production for December, oil prices have struggled. Combine those factors and you have a solid recipe for continued downward pressure on gas prices in the weeks ahead,” De Haan added. “A few dozen stations are already offering gas under $2 per gallon, and we could see that number grow as we move further into the holiday season. It couldn’t come at a better time for Americans – with relief arriving just as the holidays kick off,” De Haan continued. Monday’s GasBuddy blog stated that the nation’s average price of gasoline has fallen 8.5 cents over the last week and stands at $2.95 per gallon, according to GasBuddy data compiled from more than 12 million individual price reports covering over 150,000 gas stations across the country. “The national average is down 6.9 cents from a month ago and is 5.4 cents per gallon lower than a year ago,” the blog highlighted. The GasBuddy blog also noted that the “most common U.S. gas price encountered by motorists stood at $2.99 per gallon, unchanged from last week, followed by $2.89, $2.69, $2.79, and $2.59, rounding out the top five most common prices”. The median U.S. gas price is $2.83 per gallon, down six cents from last week and about 12 cents lower than

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TVA, Holtec to Get Up To $800MM in DOE Funding for SMR Development

The United States Department of Energy (DOE) on Tuesday announced funding for the Tennessee Valley Authority (TVA) and Holtec Government Services to support the development of light-water small modular reactors (SMRs). “The project teams will receive up to $800 million in federal cost-shared funding to advance initial projects in Tennessee and Michigan and help expand the nation’s capacity while facilitating additional follow-on projects and associated supply chains”, DOE said in an online statement. “The selections announced today will help deliver new nuclear generation in the early 2030s, strengthen domestic supply chains and advance President Trump’s executive orders to usher in a nuclear renaissance and expand America’s energy dominance agenda”. TVA has been allotted up to $400 million to advance the deployment of a GE Vernova Hitachi BWRX-300 at the Clinch River Nuclear site in Tennessee and additional units with Indiana Michigan Power and Elementl, DOE said. “TVA is the first utility in the U.S. to have a construction permit application for a BWRX-300 SMR accepted by the Nuclear Regulatory Commission”, TVA said separately. “The Clinch River project will serve as a national model for how to deploy SMRs safely, efficiently and affordably – laying the groundwork for a new era of American nuclear energy leadership”. TVA president and chief executive Don Moul said, “As AI, data centers and digital infrastructure drive unprecedented energy demand, we’re building our nation’s nuclear energy foundation right here in the Tennessee Valley”. Holtec is also getting up to $400 million to deploy two SMR-300 reactors at the Palisades Nuclear Generating Station site in Covert, Michigan. “Holtec is pursuing an innovative one-stop-shop approach to SMR deployment by fulfilling the roles of technology vendor, supply chain vendor, nuclear plant constructor in partnership with Hyundai Engineering & Construction, plant operator and electricity merchant selling the power to nearby utilities and end-users”, DOE said. Holtec said separately,

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Perenco Raises Oil Production Capacity in Chad

Perenco said it has increased its oil production capacity in Chad to over 18,000 barrels per day (bpd), coming from the Badila and Mangara fields. The completion of a 12-well drilling campaign in Badila added a peak production of 7,000 bpd, the Perrodo family-owned company said in an online statement, noting it has exceeded its goal of 16,000 bpd when the fields restarted flows three years ago. “Eight horizontal wells targeting the Upper Cretaceous reservoir were drilled during the campaign, alongside three water disposal wells and one appraisal well”, Perenco said. “The campaign also consisted of the installation of four gas turbines, providing extra power generation from the field, as well as an uplift in processing capabilities, in order to handle increased production from Badila”. “The GWDC rig has now moved to PCM’s Krim development in the Doba Basin in southern Chad where it will conduct an additional eight-well drilling campaign”, Perenco said, referring to its subsidiary PetroChad Mangara (PCM). “Using the associated gas from its production, PetroChad now provides a sustainable energy solution to the residents of Moundou, the country’s second-largest economic city with a population of around 100,000”, Perenco said. Elsewhere in Central Africa, Perenco earlier this year announced the construction of a new platform to serve Republic of the Congo’s Kombi-Likalala-Libondo 2 permit. Expected to start operations “early 2026”, Kombi 2 will recover about seven million cubic feet of gas per day, Perenco said in a press release June 12. The platform will develop an additional 10 million barrels of reserves by optimizing existing wells. Kombi 2 will have two gas turbines connected to a 33-kilovolt electrical hub. “The Kombi 2 construction project, including the upcoming drilling phases, represents an investment of over $200 million”, Perenco said. It added, “The recent renewal of the Ikalou II and

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HPE loads up AI networking portfolio, strengthens Nvidia, AMD partnerships

On the hardware front, HPE is targeting the AI data center edge with a new MX router and the scale-out networking delivery with a new QFX switch. Juniper’s MX series is its flagship routing family aimed at carriers, large-scale enterprise data center and WAN customers, while the QFX line services data center customers anchoring spine/leaf networks as well as top-of-rack systems. The new 1U, 1.6Tbps MX301 multiservice edge router, available now, is aimed at bringing AI inferencing closer to the source of data generation and can be positioned in metro, mobile backhaul, and enterprise routing applications, Rahim said. It includes high-density support for 16 x 1/1025/50GbE, 10 x 100Gb and 4 x 400Gb interfaces. “The MX301 is essentially the on-ramp to provide high speed, secure connections from distributed inference cluster users, devices and agents from the edge all the way to the AI data center,” Rami said. “The requirements here are typically around high performance, but also very high logical skills and integrated security.” In the QFX arena, the new QFX5250 switch, available in 1Q 2026, is a fully liquid-cooled box aimed at tying together Nvidia Rubin and/or AMD MI400 GPUs for AI consumption across the data center. It is built on Broadcom Tomahawk 6 silicon and supports up to 102.4Tbps Ethernet bandwidth, Rahim said.  “The QFX5250 combines HPE liquid cooling technology with Juniper networking software (Junos) and integrated AIops intelligence to deliver a high-performance, power-efficient and simplified operations for next-generation AI inference,” Rami said. Partnership expansions Also key to HPE/Juniper’s AI networking plans are its partnerships with Nvidia and AMD. The company announced its relationship with Nvidia now includes HPE Juniper edge onramp and long-haul data center interconnect (DCI) support in its Nvidia AI Computing by HPE portfolio. This extension uses the MX and Junipers PTX hyperscaler routers to support high-scale, secure

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What is co-packaged optics? A solution for surging capacity in AI data center networks

When it announced its CPO-capable switches, Nvidia said they would improve resiliency by 10 times at scale compared to previous switch generations. Several factors contribute to this claim, including the fact that the optical switches require four times fewer lasers, Shainer says. Whereas the laser source was previously part of the transceiver, the optical engine is now incorporated onto the ASIC, allowing multiple optical channels to share a single laser. Additionally, in Nvidia’s implementation, the laser source is located outside of the switch. “We want to keep the ability to replace a laser source in case it has failed and needs to be replaced,” he says. “They are completely hot-swappable, so you don’t need to shut down the switch.” Nonetheless, you may often hear that when something fails in a CPO box, you need to replace the entire box. That may be true if it’s the photonics engine embedded in silicon inside the box. “But they shouldn’t fail that often. There are not a lot of moving parts in there,” Wilkinson says. While he understands the argument around failures, he doesn’t expect it to pan out as CPO gets deployed. “It’s a fallacy,” he says. There’s also a simple workaround to the resiliency issue, which hyperscalers are already talking about, Karavalas says: overbuild. “Have 10% more ports than you need or 5%,” he says. “If you lose a port because the optic goes bad, you just move it and plug it in somewhere else.” Which vendors are backing co-packaged optics? In terms of vendors that have or plan to have CPO offerings, the list is not long, unless you include various component players like TSMC. But in terms of major switch vendors, here’s a rundown: Broadcom has been making steady progress on CPO since 2021. It is now shipping “to

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Nvidia’s $2B Synopsys stake tests independence of open AI interconnect standard

But the concern for enterprise IT leaders is whether Nvidia’s financial stakes in UALink consortium members could influence the development of an open standard specifically designed to compete with Nvidia’s proprietary technology and to give enterprises more choices in the datacenter. Organizations planning major AI infrastructure investments view such open standards as critical to avoiding vendor lock-in and maintaining competitive pricing. “This does put more pressure on UALink since Intel is also a member and also took investment from Nvidia,” Sag said. UALink and Synopsys’s critical role UALink represents the industry’s most significant effort to prevent vendor lock-in for AI infrastructure. The consortium ratified its UALink 200G 1.0 Specification in April, defining an open standard for connecting up to 1,024 AI accelerators within computing pods at 200 Gbps per lane — directly competing with Nvidia’s NVLink for scale-up applications. Synopsys plays a critical role. The company joined UALink’s board in January and in December announced the industry’s first UALink design components, enabling chip designers to build UALink-compatible accelerators. Analysts flag governance concerns Gaurav Gupta, VP analyst at Gartner, acknowledged the tension. “The Nvidia-Synopsys deal does raise questions around the future of UALink as Synopsys is a key partner of the consortium and holds critical IP for UALink, which competes with Nvidia’s proprietary NVLink,” he said. Sanchit Vir Gogia, chief analyst at Greyhound Research, sees deeper structural concerns. “Synopsys is not a peripheral player in this standard; it is the primary supplier of UALink IP and a board member within the UALink Consortium,” he said. “Nvidia’s entry into Synopsys’ shareholder structure risks contaminating that neutrality.”

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Cooling crisis at CME: A wakeup call for modern infrastructure governance

Organizations should reassess redundancy However, he pointed out, “the deeper concern is that CME had a secondary data center ready to take the load, yet the failover threshold was set too high, and the activation sequence remained manually gated. The decision to wait for the cooling issue to self-correct rather than trigger the backup site immediately revealed a governance model that had not evolved to keep pace with the operational tempo of modern markets.” Thermal failures, he said, “do not unfold on the timelines assumed in traditional disaster recovery playbooks. They escalate within minutes and demand automated responses that do not depend on human certainty about whether a facility will recover in time.” Matt Kimball, VP and principal analyst at Moor Insights & Strategy, said that to some degree what happened in Aurora highlights an issue that may arise on occasion: “the communications gap that can exist between IT executives and data center operators. Think of ‘rack in versus rack out’ mindsets.” Often, he said, the operational elements of that data center environment, such as cooling, power, fire hazards, physical security, and so forth, fall outside the realm of an IT executive focused on delivering IT services to the business. “And even if they don’t fall outside the realm, these elements are certainly not a primary focus,” he noted. “This was certainly true when I was living in the IT world.” Additionally, said Kimball, “this highlights the need for organizations to reassess redundancy and resilience in a new light. Again, in IT, we tend to focus on resilience and redundancy at the app, server, and workload layers. Maybe even cluster level. But as we continue to place more and more of a premium on data, and the terms ‘business critical’ or ‘mission critical’ have real relevance, we have to zoom out

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Microsoft loses two senior AI infrastructure leaders as data center pressures mount

Microsoft did not immediately respond to a request for comment. Microsoft’s constraints Analysts say the twin departures mark a significant setback for Microsoft at a critical moment in the AI data center race, with pressure mounting from both OpenAI’s model demands and Google’s infrastructure scale. “Losing some of the best professionals working on this challenge could set Microsoft back,” said Neil Shah, partner and co-founder at Counterpoint Research. “Solving the energy wall is not trivial, and there may have been friction or strategic differences that contributed to their decision to move on, especially if they saw an opportunity to make a broader impact and do so more lucratively at a company like Nvidia.” Even so, Microsoft has the depth and ecosystem strength to continue doubling down on AI data centers, said Prabhu Ram, VP for industry research at Cybermedia Research. According to Sanchit Gogia, chief analyst at Greyhound Research, the departures come at a sensitive moment because Microsoft is trying to expand its AI infrastructure faster than physical constraints allow. “The executives who have left were central to GPU cluster design, data center engineering, energy procurement, and the experimental power and cooling approaches Microsoft has been pursuing to support dense AI workloads,” Gogia said. “Their exit coincides with pressures the company has already acknowledged publicly. GPUs are arriving faster than the company can energize the facilities that will house them, and power availability has overtaken chip availability as the real bottleneck.”

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What is Edge AI? When the cloud isn’t close enough

Many edge devices can periodically send summarized or selected inference output data back to a central system for model retraining or refinement. That feedback loop helps the model improve over time while still keeping most decisions local. And to run efficiently on constrained edge hardware, the AI model is often pre-processed by techniques such as quantization (which reduces precision), pruning (which removes redundant parameters), or knowledge distillation (which trains a smaller model to mimic a larger one). These optimizations reduce the model’s memory, compute, and power demands so it can run more easily on an edge device. What technologies make edge AI possible? The concept of the “edge” always assumes that edge devices are less computationally powerful than data centers and cloud platforms. While that remains true, overall improvements in computational hardware have made today’s edge devices much more capable than those designed just a few years ago. In fact, a whole host of technological developments have come together to make edge AI a reality. Specialized hardware acceleration. Edge devices now ship with dedicated AI-accelerators (NPUs, TPUs, GPU cores) and system-on-chip units tailored for on-device inference. For example, companies like Arm have integrated AI-acceleration libraries into standard frameworks so models can run efficiently on Arm-based CPUs. Connectivity and data architecture. Edge AI often depends on durable, low-latency links (e.g., 5G, WiFi 6, LPWAN) and architectures that move compute closer to data. Merging edge nodes, gateways, and local servers means less reliance on distant clouds. And technologies like Kubernetes can provide a consistent management plane from the data center to remote locations. Deployment, orchestration, and model lifecycle tooling. Edge AI deployments must support model-update delivery, device and fleet monitoring, versioning, rollback and secure inference — especially when orchestrated across hundreds or thousands of locations. VMware, for instance, is offering traffic management

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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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