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Hydrogen is transforming a tiny Utah coal town. Could its success hold lessons for similar communities?

Listen to the article 19 min This audio is auto-generated. Please let us know if you have feedback. The roads in and out of Delta, Utah, are dotted with ghost towns. The oldest date back to the Pony Express. The majority saw their heyday during the gold rush; now they mostly consist of stone markers and […]

The roads in and out of Delta, Utah, are dotted with ghost towns. The oldest date back to the Pony Express. The majority saw their heyday during the gold rush; now they mostly consist of stone markers and the occasional remnants of an old cabin.

And like many of the towns that remain in Utah’s West Desert, Delta has faced the very real possibility that it, too, could be relegated to the dustbin of history sooner rather than later. Town mayor John Niles recalls having conversations with his city council about the possibility that they could face an exodus of residents or even a foreclosure crisis when the Intermountain Power Agency announced in 2017 that it planned to close by 2025 the 1.9 GW coal-fired power plant that accounts for roughly half the town’s total GDP.

In a town of just 3,800 residents, these weren’t anonymous citizens who stood to lose their homes. Niles himself worried that his two sons, who both work at the IPP coal plant just as he did before he ran for city council, would be forced to move away to find work.

Instead, the town today is experiencing something of a housing shortage. Faced with the possibility of losing its largest customer — the Los Angeles Department of Water and Power — if it continued to burn coal, the Intermountain Power Agency decided to replace the coal plant with a pair of gas-fired turbines with a combined capacity of 840 MW designed to run on 100% green hydrogen by 2045.


“California got 40 years of good, reliable baseload electricity. The Utahns have got jobs, tax revenue and this sweetheart deal that gives them a front row seat at a world-class project they only pay for when they use it. It’s been a tremendous success.”

John Ward

Intermountain Power Project spokesperson


Construction of the new plant and all the associated infrastructure reached peak employment last summer with some 1,200 workers on site. And finding room and board for all those workers in a town the size of Delta has proved a bit of a challenge.

If construction on the plant remains on track — it’s slated to open this year — the Intermountain Power Project stands to become the world’s first operational gas power plant designed and built to use 100% carbon-free hydrogen.

But there’s more at stake than simply demonstrating hydrogen-powered energy generation at scale. The town of Delta could also represent a rare success story in the nation’s quest to transition former coal-producing communities to renewable energy — but one that experts say could be difficult to replicate elsewhere, given the unusual confluence of circumstances that is giving rise to the IPP’s new hydrogen-capable gas plant.

Commitment and community values

During the energy crisis of the 1970s, rural communities such as Delta wanted more baseload generation to ensure access to reliable electricity. But the small size of these cities and towns meant that they couldn’t afford to build a large coal plant all by themselves — they’d never use enough of the power to justify the expense.

In Utah, 23 communities formed the Intermountain Power Agency with a goal of pooling their resources and sharing the power from the two-unit coal-fired power plant they ultimately built. Yet even this cooperative couldn’t use all the power they planned to generate, so they struck a deal with a much larger municipality: Los Angeles. The Utah-based municipalities and public utilities retain the right to take as much power from the project as they need, and the remaining power is sold to LADWP, with the proceeds coming back to the municipalities that own the project. These municipalities can also choose to defer their entire interest in the project in favor of selling their portion of the power to LA, according to John Ward, an IPP spokesman.

“And it’s worked out well for everybody,” Ward said. “California got 40 years of good, reliable baseload electricity. The Utahns have got jobs, tax revenue and this sweetheart deal that gives them a front row seat at a world-class project they only pay for when they use it. It’s been a tremendous success.”

Intermountain Power Project spokesman John Ward looks over the plant’s existing General Electric turbines.

IPP spokesperson John Ward looks over the plant’s existing General Electric turbines. The ultimate fate of the turbines and coal-fire plant remains uncertain in the wake of state legislation that aims to keep the coal plant up and running in spite of plans to shutter it.

Emma Penrod/Utility Dive

Construction of the original Intermountain Power Project completely transformed Delta, which was then a small farming community with little industrial experience. But the town largely welcomed the change. The project has, in the time since, generated more than $600 million in tax revenue for local communities in addition to creating jobs and attracting other energy and materials-related businesses to the area, Ward said.

That income means Delta — and the smaller surrounding communities — enjoy public services not often seen in towns of this size, according to Vicki Lyman, a technical analyst in the environmental group at IPP who also serves as a local county commissioner. The power plant helps pay for local schools, the hospital, a new jail, a library and a softball complex, among other things.

“The CEO out there … has done more for our community than you can imagine,” Delta Mayor Niles said. “He donates to everything. He donates to our high school, to the football teams. Most companies won’t do that.”

A child plays in a fountain in a city park in Delta, Utah

A child plays in a fountain in a city park in Delta, Utah. Tax revenue and donations from the IPP mean Delta and many of the surrounding communities enjoy government services not typically available to communities of their size.

Emma Penrod/Utility Dive

Although it’s no longer the only game in town, the IPP remains the largest taxpayer in the county, Ward said. So when LADWP informed the IPP board that it could no longer purchase coal-fired electricity, Ward said their responsibility to the community meant they had to find a new way to serve their largest customer to avoid closing the plant. So that is what they did.

Because the original IPP plan called for the construction of two additional coal units that were never built, the cooperative had room on site for a new set of generators — two natural gas units totaling 840 MW. These will start running a 30% hydrogen blend as early as this summer, with a goal of using 100% carbon-free hydrogen by 2045.

Construction of two hydrogen-capable natural gas generators proceeds at the Intermountain Power Project site.

Construction of two hydrogen-capable natural gas generators proceeds at the IPP site in July 2024. The new plant is on track to become the world’s first operating gas plant designed and built to use 100% carbon-free hydrogen fuel.

Emma Penrod/Utility Dive

Beside the cost and the potential stakes for the local community, the hydrogen industry writ large also has a lot riding on this particular project, Chevron New Energies’ Vice President of Hydrogen Austin Knight said.

“To do something this large on this timeline makes it very unique — and something the entire system can learn from,” Knight said. And perhaps the most important factor making it all possible, he said, was the fact that the customer and the entire team behind the project has an unwavering commitment to clean, renewable energy.

Making hydrogen in coal country

Although slated to open this year, Delta’s Intermountain Power Project likely won’t reach its goal of running on 100% carbon-free hydrogen until 2045. The plant plans to blend 30% hydrogen and 70% natural gas upon opening, because sufficient hydrogen fuel needed to reach 100% doesn’t currently exist, according to John Ward, a spokesman for the project. 

Mitsubishi, which the IPP initially tapped to provide both of the turbines for the gas units, plans to help fill that gap. On the other side of the highway from the IPP facility, Mitsubishi has set up an independent, 220 MW electrolysis facility they call the Advanced Clean Energy Storage, or ACES, Delta to produce the hydrogen.

Surplus renewable energy from LA, delivered via the same power lines that IPP has used to provide power to California all these years, will drive the electrolyzers that split water into its component parts of hydrogen and oxygen. Chevron entered the project as a partner in 2023 when it purchased a series of underground storage facilities owned by Magnum Development. Chevron will store the hydrogen — until it is ready for use by IPP or sold to potential third-party customers — in two salt caverns also under construction in Delta.

The salt caverns, additions to the existing Magnum facility that stores other types of fuel underground, have the potential to store 300 GWh of electricity. This is something of a happy coincidence, Ward said. Nobody intended to build the IPP atop a huge underground salt deposit; developers discovered it later while prospecting for oil.

Even with all the pieces that have fallen into place, the IPP still requires significant transmission upgrades, including the installation of three 400 MVA synchronous condensers by Siemens Energy to help balance the grid.

The condensers project at IPP is one of the largest of its kind undertaken by Siemens, according to Matt Neal, the company’s vice president of Grid Solutions for North America. The scale of the project means that its influence will be felt beyond the hydrogen industry, he said.

“We are building similar projects in Texas right now, but they are pure-transmission utilities that don’t have any generation,” he said. “That gives us an opportunity to take things we learned at IPP to Texas and say we built one of these for a generation customer and we learned some things, and maybe we can make these assets a bit better, a bit safer, and a bit higher quality.”

Unique obstacles

While many coal-producing towns face similar challenges, the reality is that each community is unique. That means that a single approach is unlikely to fix all the issues that such areas face, according to Sean O’Leary, a senior researcher at the Ohio River Valley Institute, where he studies the economies of coal- and other energy-producing communities.

A community like Delta has limited options to prevent its economy from collapsing when its main revenue generator is threatened, O’Leary said. Most communities that have made successful transitions from fossil fuel production to other industries, such as Centralia, Washington, are significantly larger than Delta, with more diverse economies before the loss of fossil fuel jobs.

An RV parks outside a motel on Delta’s main street.

An RV parks outside a motel on Delta’s main street. Housing 1,200 construction workers in a town of just 3,800 residents has proven challenging, according to Mayor John Niles, and available hotel rooms and RV hookups have become scarce.

Emma Penrod/Utility Dive

Yet Delta does have some unique circumstance that should work in its favor, O’Leary continued. The biggest factor, in his view, is that the IPP has already found a customer. Many hydrogen projects to date have been unable to get off the ground due to their inability to secure offtakers.

The second factor, O’Leary said, is that the IPP is owned by local municipalities, which means that the economic benefits associated with the project are more likely to stay within the surrounding communities. The limited number of jobs associated with projects like power plants relative to the high cost of capital means that the benefits of these projects more often accrue to investors who live outside the communities in which they are built.

What flummoxes O’Leary is the fact that Los Angeles is apparently willing to pay for all of this. Hydrogen, O’Leary noted, is still hugely expensive compared to nearly all forms of generation, and most forms of energy storage. When contacted last summer, LADWP declined to comment, referring any questions to IPP.

The politics of the situation also mystify O’Leary. In some other coal-producing communities that have looked to transition to hydrogen or other forms of renewable energy, opposition from local communities has threatened to derail projects.

“The cultural aspect of this is so bedeviling,” O’Leary said, noting that one in four counties in the Ohio River Valley, another area that has attempted to make this transition, has passed ordinances prohibiting the construction of wind and solar farms. “We are trying to understand the nature of the opposition because most of it isn’t about cost and benefits. It’s not about jobs. To a large degree the opposition is basically cultural, identity-based. That makes it very difficult to overcome.”

Rural workforce in transition

While policies looking to preserve economic opportunity in rural energy communities typically focus on job growth, the data suggests this is one area where simply switching fuels may not produce the desired results, according to Sean O’Leary, a senior researcher at the Ohio River Valley Institute, where he studies the economies of energy-producing communities. Running alternatives like natural gas often requires fewer workers than coal plants, he said.

Delta may not be entirely immune to this challenge. Although construction at the IPP and related projects at ACES Delta has swelled the town’s population, the vast majority of those jobs are temporary. Employment tied to the project has likely already peaked and will begin to wind down as construction nears completion.

The IPP has notified some employees that they will be laid off when the transition is complete. Although the coal-fired power plant currently employs about 300 people, Ward said the new gas units will only require about 180 workers.

A good portion of the plant’s existing workforce planned to retire in the near future, so that should help mitigate the layoffs, Ward said. The IPP is hopeful that adjacent projects like ACES Delta, which Mitsubishi estimates will create 20 new long-term jobs, will help offset some of the losses at the plant. Siemens also expects to keep eight people to run its condenser units.

But comparing the number of jobs retained to the number of people IPP used to employ isn’t entirely fair, Ward said. “The comparison is what the gas plant’s going to be compared to nothing,” he said. “Because if left to inertia, that’s what would’ve happened here. The California customers would’ve gone away. It would’ve become non-economic, and like Navajo [Generating Station] it just would be a flat spot in the ground. We’re building new stuff to keep the project alive.”

Even so, O’Leary suspects IPP has exaggerated the number of jobs the new project will create. While there are few coal-to-hydrogen transitions for direct comparison, to retain 180 employees at a gas plant of this size would be unusual, he said. Given the structure of management at the IPP — the board is staffed by representatives of the Utah cities that formally own the plant — and the local stories of IPP employees being directed to assist with local government projects on company time, O’Leary said it is distinctly possible that the Intermountain Power Agency is willing to accept “certain inefficiencies” because it has goals other than maximizing profit for stakeholders.

Ward doesn’t deny this. “These are community-minded people to begin with. The folks on the IPA board are essentially volunteers,” he said. “They’re all very community minded and interested in serving communities, and I think community building is part of the motivation that is baked into that group’s DNA. They’re not looking for a profit here.”

Policy and paygrades

The Intermountain Power transition project is itself no stranger to opposition. Last year, the Utah state legislature attempted to stop the planned 2025 retirement of the coal plant by passing a bill that required the IPA to give the state government a two-year window to buy the plant, despite objections from IPA leaders who said this would interfere with their plans for the project’s transition. The fate of the coal plant closure remains uncertain, but the IPA no longer objects to the state’s intervention following changes to the original bill that put the onus of figuring out how to keep the coal plant running on state officials, according to Ward.

That disinclination to tangle with the broader, thornier questions of the energy transition may well account for the IPA’s ability to bridge the gap between Utah’s traditionally conservative politics, and the more liberal polices that govern their customers in California.


“This project has figured out a way for people to cooperate to the benefit of everybody, and we’re trying to keep those values as we move into the next phase of the project’s life.”

John Ward

Intermountain Power Project spokesperson


From the IPA’s perspective, Ward said, switching fuels was a simple business decision based on customer demand. If California wanted to pay for clean power, then the IPP was going to make clean power. Broader questions about how society should transition to clean energy without harming coal-producing communities are “above our paygrade,” he said.

That pragmatism is also apparent in the IPA’s dealings with other project partners, such as Siemens. Matt Neal, who is overseeing Siemens’ end of the project as the company’s vice president of grid solutions in North America, described IPA’s managers as “some of the best customers we’ve ever had” thanks to their commitment to making level-headed, logical decisions about what was best for the project without getting emotions involved.

The scale of the project probably lends itself to some of that agreeableness. Michael Ducker, president and CEO of Mitsubishi subsidiary MHI Hydrogen Infrastructure, posited that the enormous investment going into the project and the commitment it represents gives locals a confidence that they can work at the plant and raise a family and that their kids will have a path toward a stable future. But Mayor Niles thinks it’s more than that — the people of Delta are just more open-minded than most, he said.

“I think everybody realizes that we have to keep moving forwards,” he said. Some residents have expressed skepticism about other new energy projects in the area, Niles said, but they usually come around once the project gets off the ground.

The ACES Delta site where Mitsubishi subsidiary MHI Hydrogen Infrastructure plans to make green hydrogen to supply the IPP gas plants.

The ACES Delta site where Mitsubishi subsidiary MHI Hydrogen Infrastructure plans to make green hydrogen to supply the IPP gas plants. Mitsubishi anticipates the electrolyzer facility will create 20 permanent jobs, some of which have already been filled by former IPP employees.

Emma Penrod/Utility Dive

That prospect of working with cutting-edge technology also appeals to Lyman, who worked as a local high school science teacher before taking her first job at the power plant.

“When I taught chemistry, I would do demonstrations for the students and show them how we can split water into hydrogen and oxygen, and we’d burn the hydrogen …. I mean, I’m pretty excited about hydrogen. I think there’s a huge future in hydrogen,” Lyman said, though she acknowledges that most of the community likely supports the hydrogen transition because they appreciate the tax base and the government services that come with the power plant.

How you replicate that mindset elsewhere and convince polarized political factions to get along is “a whole different issue,” Ward said. “But in terms of this project, this project has figured out a way for people to cooperate to the benefit of everybody, and we’re trying to keep those values as we move into the next phase of the project’s life.”

And while there’s no current plans for an “IPP 3.0,” you can already see the potential for it when you look out from the coal plant’s roof over Delta’s expansive desert horizon, Ward said.

“There’s land, there’s water, there’s existing transmission capacity,” he said. “We’ve got Mitsubishi and Chevron right across the highway investing major money from international conglomerates. There’s a huge potential for this to be the starting point for additional development, and I think that decades-long history of cooperation is the thing that’s going to make this project thrive for many more decades to come.”

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Quiet Genius at the Neutral Line: How Onics Filters Are Reshaping the Future of Data Center Power Efficiency

Why Harmonics Matter In a typical data center, nonlinear loads—like servers, UPS systems, and switch-mode power supplies—introduce harmonic distortion into the electrical system. These harmonics travel along the neutral and ground conductors, where they can increase current flow, cause overheating in transformers, and shorten the lifespan of critical power infrastructure. More subtly, they waste power through reactive losses that don’t show up on a basic utility bill, but do show up in heat, inefficiency, and increased infrastructure stress. Traditional mitigation approaches—like active harmonic filters or isolation transformers—are complex, expensive, and often require custom integration and ongoing maintenance. That’s where Onics’ solution stands out. It’s engineered as a shunt-style, low-pass filter: a passive device that sits in parallel with the circuit, quietly siphoning off problematic harmonics without interrupting operations.  The result? Lower apparent power demand, reduced electrical losses, and a quieter, more stable current environment—especially on the neutral line, where cumulative harmonic effects often peak. Behind the Numbers: Real-World Impact While the Onics filters offer a passive complement to traditional mitigation strategies, they aren’t intended to replace active harmonic filters or isolation transformers in systems that require them—they work best as a low-complexity enhancement to existing power quality designs. LoPilato says Onics has deployed its filters in mission-critical environments ranging from enterprise edge to large colos, and the data is consistent. In one example, a 6 MW data center saw a verified 9.2% reduction in energy consumption after deploying Onics filters at key electrical junctures. Another facility clocked in at 17.8% savings across its lighting and support loads, thanks in part to improved power factor and reduced transformer strain. The filters work by targeting high-frequency distortion—typically above the 3rd harmonic and up through the 35th. By passively attenuating this range, the system reduces reactive current on the neutral and helps stabilize

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New IEA Report Contrasts Energy Bottlenecks with Opportunities for AI and Data Center Growth

Artificial intelligence has, without question, crossed the threshold—from a speculative academic pursuit into the defining infrastructure of 21st-century commerce, governance, and innovation. What began in the realm of research labs and open-source models is now embedded in the capital stack of every major hyperscaler, semiconductor roadmap, and national industrial strategy. But as AI scales, so does its energy footprint. From Nvidia-powered GPU clusters to exascale training farms, the conversation across boardrooms and site selection teams has fundamentally shifted. It’s no longer just about compute density, thermal loads, or software frameworks. It’s about power—how to find it, finance it, future-proof it, and increasingly, how to generate it onsite. That refrain—“It’s all about power now”—has moved from a whisper to a full-throated consensus across the data center industry. The latest report from the International Energy Agency (IEA) gives this refrain global context and hard numbers, affirming what developers, utilities, and infrastructure operators have already sensed on the ground: the AI revolution will be throttled or propelled by the availability of scalable, sustainable, and dispatchable electricity. Why Energy Is the Real Bottleneck to Intelligence at Scale The major new IEA report puts it plainly: The transformative promise of AI will be throttled—or unleashed—by the world’s ability to deliver scalable, reliable, and sustainable electricity. The stakes are enormous. Countries that can supply the power AI craves will shape the future. Those that can’t may find themselves sidelined. Importantly, while AI poses clear challenges, the report emphasizes how it also offers solutions: from optimizing energy grids and reducing emissions in industrial sectors to enhancing energy security by supporting infrastructure defenses against cyberattacks. The report calls for immediate investments in both energy generation and grid capabilities, as well as stronger collaboration between the tech and energy sectors to avoid critical bottlenecks. The IEA advises that, for countries

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Colorado Eyes the AI Data Center Boom with Bold Incentive Push

Even as states work on legislation to limit data center development, it is clear that some locations are looking to get a bigger piece of the huge data center spending that the AI wave has created. It appears that politicians in Colorado took a look around and thought to themselves “Why is all that data center building going to Texas and Arizona? What’s wrong with the Rocky Mountain State?” Taking a page from the proven playbook that has gotten data centers built all over the country, Colorado is trying to jump on the financial incentives for data center development bandwagon. SB 24-085: A Statewide Strategy to Attract Data Center Investment Looking to significantly boost its appeal as a data center hub, Colorado is now considering Senate Bill 24-085, currently making its way through the state legislature. Sponsored by Senators Priola and Buckner and Representatives Parenti and Weinberg, this legislation promises substantial economic incentives in the form of state sales and use tax rebates for new data centers established within the state from fiscal year 2026 through 2033. Colorado hopes to position itself strategically to compete with neighboring states in attracting lucrative tech investments and high-skilled jobs. According to DataCenterMap.com, there are currently 53 data centers in the state, almost all located in the Denver area, but they are predominantly smaller facilities. In today’s era of massive AI-driven hyperscale expansion, Colorado is rarely mentioned in the same breath as major AI data center markets.  Some local communities have passed their own incentive packages, but SB 24-085 aims to offer a unified, statewide framework that can also help mitigate growing NIMBY (Not In My Backyard) sentiment around new developments. The Details: How SB 24-085 Works The bill, titled “Concerning a rebate of the state sales and use tax paid on new digital infrastructure

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Wonder Valley and the Great AI Pivot: Kevin O’Leary’s Bold Data Center Play

Data Center World 2025 drew record-breaking attendance, underscoring the AI-fueled urgency transforming infrastructure investment. But no session captivated the crowd quite like Kevin O’Leary’s electrifying keynote on Wonder Valley—his audacious plan to build the world’s largest AI compute data center campus. In a sweeping narrative that ranged from pandemic pivots to stranded gas and Branson-brand inspiration, O’Leary laid out a real estate and infrastructure strategy built for the AI era. A Pandemic-Era Pivot Becomes a Case Study in Digital Resilience O’Leary opened with a Shark Tank success story that doubled as a business parable. In 2019, a woman-led startup called Blueland raised $50 million to eliminate plastic cleaning bottles by shipping concentrated cleaning tablets in reusable kits. When COVID-19 shut down retail in 2020, her inventory was stuck in limbo—until she made an urgent call to O’Leary. What followed was a high-stakes, last-minute pivot: a union-approved commercial shoot in Brooklyn the night SAG-AFTRA shut down television production. The direct response ad campaign that resulted would not only liquidate the stranded inventory at full margin, but deliver something more valuable—data. By targeting locked-down consumers through local remnant TV ad slots and optimizing by conversion, Blueland saw unheard-of response rates as high as 17%. The campaign turned into a data goldmine: buyer locations, tablet usage patterns, household sizes, and contact details. Follow-up SMS campaigns would drive 30% reorders. “It built such a franchise in those 36 months,” O’Leary said, “with no retail. Now every retailer wants in.” The lesson? Build your infrastructure to control your data, and you build a business that scales even in chaos. This anecdote set the tone for the keynote: in a volatile world, infrastructure resilience and data control are the new core competencies. The Data Center Power Crisis: “There Is Not a Gig on the Grid” O’Leary

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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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