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TXOGA Issues Winter Weather Situation Report

In a winter weather situation report sent to Rigzone late Monday, the Texas Oil & Gas Association (TXOGA) said the state’s natural gas production, processing, transmission, and storage sectors continue to have needed production and storage. “No significant changes in production, pressures or availability have been reported,” TXOGA noted in the statement. “Overall conditions have […]

In a winter weather situation report sent to Rigzone late Monday, the Texas Oil & Gas Association (TXOGA) said the state’s natural gas production, processing, transmission, and storage sectors continue to have needed production and storage.

“No significant changes in production, pressures or availability have been reported,” TXOGA noted in the statement.

“Overall conditions have been stable even with the cold temperatures. Personnel are in place to maintain operations,” it added.

In the statement, TXOGA highlighted that the Texas Railroad Commission (RRC) “has issued a notice to operators preparing for the upcoming freezing weather and potential snow/ice”.

“Oil and gas operators and pipelines are preparing assets and implementing cold weather contingencies with ample storage and available gas,” TXOGA said.

“No reports of concerns or impacts at this time. Reports indicate generators are preparing and activating their cold weather preparedness plans and have been working with suppliers to ensure continuous operations,” it noted.

“Transmission providers have also indicated they have been conducting cold weather training and preparations and have put staffing and other needs in place and in preparation for any potential issues resulting from potential weather events,” it continued.

“TxDOT has been pretreating roads ahead of expected weather activity,” TXOGA went on to state.

In a statement posted on its website on January 6, the RRC said, “for more than a month”, it has “taken important steps to help ensure adequate natural gas supply for winter weather, including this week’s wintry conditions”.

“Starting in the first week of December, RRC’s Critical Infrastructure Division (CID) began weatherization inspections of critical natural gas facilities in the state’s electricity supply chain,” it added.

CID has conducted more than 1,200 inspections, according to the RRC statement. These include “all of what are known as Tier One facilities”, the statement highlighted.

The RRC also pointed out in the statement that there was 522,396 billion cubic feet of working natural gas in underground storage in Texas as of the end of November 2024. It said this is the highest monthly total in the 25 years the RRC has tracked storage volumes.

“Natural gas that is stored underground is also an important resource that can be withdrawn and utilized during weather emergencies,” the RRC noted in the statement.

“As we have done in past cycles, we will continue to stay on top of bad winter weather with inspections and calls with oil and gas operators,” Danny Sorrells, RRC Deputy Executive Director, said in the statement.

“We take every step we can to make sure gas flows to power plants and for home heating, and we want to reassure Texans that the agency takes an all-hands-on deck approach to protect residents in weather emergencies,” he added.

The RRC stated that its winter weatherization inspections of critical natural gas facilities last through the end of March.

TXOGA’s winter weather situation report also highlighted that the Electric Reliability Council of Texas (ERCOT) reported normal operations as of Monday, January 6 at 3:15pm.

“Peak demand occurred at 8.10am. Available capacity at peak demand was 83,950 MW, with demand at 68,271 MW. There was enough power to meet demand,” TXOGA said.

In a statement posted on its website on January 5, ERCOT issued a weather watch from January 6-10 “due to forecasted cold weather across the ERCOT region, higher electrical demand, and the potential for lower reserves”.

“Grid conditions are expected to be normal during an ERCOT weather watch,” ERCOT added in the statement.

“ERCOT is monitoring conditions closely and will deploy all available tools to manage the grid, continuing a reliability-first approach to operations,” it continued.

To contact the author, email [email protected]

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SASE 2025: Impact grows despite adoption hurdles

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Nile dials-up AI to simplify network provisioning, operation

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BP Confirms Job Cuts

BP confirmed thousands of job cuts in a statement sent to Rigzone on Friday. “Last year, we began a multi-year program to simplify and focus BP,” the statement noted. “We are strengthening our competitiveness and building in resilience as we lower our costs, drive performance improvement, and play to our distinctive capabilities,” it added.  “To deliver this, a series of programs are in place in businesses throughout BP. Today, we have … told staff across BP that the proposed changes that have been announced to date are expected to impact around 4,700 BP roles – these account for much of the anticipated reduction this year,” it continued. “We are also reducing our contractor numbers by 3,000,” the statement went on to note. In an all staff email from BP CEO Muray Auchincloss, which was sent to Rigzone by BP, Auchincloss highlighted the job cuts and revealed that 2,600 contractors had already left. “I understand and recognize the uncertainty this brings for everyone whose job may be at risk, and also the effect it can have on colleagues and teams,” Auchincloss noted in the email. “We have a range of support available, and please continue to show care for each other, be considerate, and keep putting safety first – especially during times of change,” he added. “Thank you for your honesty in the calls and conversations you’ve been having with your leaders. As I’ve said before, we are a brilliant company with great people, great businesses, and great assets – and we are uniquely positioned to grow value through the energy transition,” he continued. “But that doesn’t give us an automatic right to win. We have to keep improving our competitiveness and moving at the pace of our customers and society. That’s what we are doing,” the BP CEO went on to

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PakEnergy Acquires Well Management Software Firm

Energy solutions provider PakEnergy, LLC has acquired Petrosight, Inc. (Petrosight), a provider of advanced well management software. The acquisition “reinforces PakEnergy’s position as a single-source provider of end-to-end well-lifecycle management solutions from site planning and construction to drilling, production, workovers, and decommissioning,” the company said in a news release. Calgary, Alberta-based Petrosight’s cloud-based wellsite management technology was designed by oilfield engineers for oilfield engineers and field supervisors to bridge the data and reporting gap between the field and the office, the release said. “The intuitive system simplifies complexity in drilling well management, enabling customers to capture, analyze, and act on well data with unprecedented ease, precision, and efficiency,” according to the release. Pakenergy CEO Santosh Nanda said, “PakEnergy is dedicated to empowering energy operators with easy-to-implement and adopt solutions that meet real-world challenges. The Petrosight system addresses the critical need for timely well data and perfectly complements our land management, field data capture, and accounting systems. With the addition of these powerful well data management capabilities, we can now deliver unparalleled visibility and control across the well and capital project lifecycle, ensuring our customers have the tools to lead and succeed in the ever-changing oil and gas sector”. Petrosight Managing Director Christian Gillis said, “By joining PakEnergy, we gain access to their robust infrastructure and outstanding technical expertise, enabling us to accelerate product innovation and bring integrated resources to our customers faster”. In August 2024, PakEnergy also acquired Plow Technologies, a provider of digital automation and cloud / Supervisory Control and Data Acquisition (SCADA) software, including its OnPing platform. OnPing is a cloud SCADA platform for oilfield applications and manufacturing. Born from extensive field experience, the product simplifies the creation and management of automation systems and ensures reliability, accessibility, and integration with various devices and systems, the company said in

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Union campaign to save oil worker jobs receives backing from over 70 politicians

Unite the Union’s campaign to preserve oil worker jobs throughout the transition has received the backing of more than half of the 129 MSPs in Holyrood. This came after UK supermajor BP confirmed it is looking to cut nearly 8,000 jobs as part of its cost-cutting measures. A total of 4,700 jobs are set to be cut within the firm as a further 3,000 contractors are let go. The ‘No Ban Without a Plan’ initiative has received the backing of 65 MSPs and 6 MPs on the same list as 71 political backers. However, Unite has shared that none of its supporters are representatives of the Green or Liberal Democrat parties. In response, climate emergency spokesperson and Orkney Liberal Democrat MSP Liam McArthur said: “No one can seriously doubt the time and effort my party has put into supporting the energy industry in the Northern Isles and elsewhere. “These are serious issues and we have been clear that we are fully committed to ensuring a just transition for oil and gas workers that harnesses their enormous skills and expertise. “We have also highlighted the need for a tailored approach, reflecting the fact that regions and communities will be impacted differently.” © Supplied by Wullie Marr / DC ThoNorth East MSP Maggie Chapman was elected for the Scottish Greens in 2021. Image: Wullie Marr / DC Thomson Green MSP Maggie Chapman added that the country needs a “plan for a genuinely just transition” that support workers. Chapman commented: “Trade unions must be central to that process. What is being done now is neither just nor a transition, and all too often it is being done to workers rather than having them at the centre of it. “As well as the clear environmental damage that it is doing, continued oil and gas

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Union Says More Than Half of MSPs Support North Sea Oil, Gas Campaign

In a statement sent to Rigzone by UK union Unite on Thursday, the union announced that more than half of the members of Scottish parliament (MSP) have backed Unite’s North Sea oil and gas No Ban Without a Plan campaign. The statement outlined that 30 Conservative MSPs, 27 Scottish National Party (SNP) MSPs, seven Labour MSPs, and one Alba Party MSP are supporting the campaign. There are 129 Members of the Scottish Parliament, comprising 62 SNP MSPs, 31 Scottish Conservative and Unionist Party MSPs, 22 Scottish Labour MSPs, seven Scottish Green Party MSPs, four Scottish Liberal Democrat MSPs, one Alba Party MSP, one Independent MSP, and one MSP with no party affiliation, the Scottish parliament website shows. Unite noted in the statement that it is disappointed that no Green and no Liberal Democrat MSP has supported the campaign. It added that the Liberal Democrats “represent parts of Scotland including Orkney and Shetland”, which the union said “are heavily dependent on the oil and gas industry”. “The majority of MSPs are clear that Labour needs to reverse its irresponsible policy banning all new oil and gas licenses irrespective of the impact on jobs,” Unite General Secretary Sharon Graham said in the statement. “It is madness to do this without a viable plan including concrete equivalent jobs for North Sea workers and real assurances on energy security. We must not let go of one lifeline until we’ve got hold of another,” he added. “Unite won’t sit back and let workers be abandoned – there must be a workers’ transition to net zero,” he went on to state. Unite Scottish secretary Derek Thomson said in the statement, “oil and gas is essential to the economic success of Scotland”. “It is outrageous that any government could countenance running down this sector until alternative options are in place,” he added. “The

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Chevron, Brightmark Start Production at 10 RNG Plants in US Midwest

A renewable natural gas (RNG) joint venture between Brightmark LLC. and Chevron Corp. has put onstream 10 more projects across the United States Midwest. The new operational projects are in Iowa, Ohio, Michigan, South Dakota and Wisconsin. Brightmark RNG Holdings LLC now has 15 RNG projects in the Midwest. “This milestone makes Brightmark one of the leading dairy RNG providers in the United States”, a joint statement said. “To date, Brightmark has reduced emissions by more than 1.2 million tons of CO2eq [carbon dioxide equivalent] through its RNG circularity centers, equivalent to the amount of carbon sequestered by planting and growing nearly 20 million trees for 10 years”. Brightmark uses organic waste from dairy farms to produce RNG, or biomethane, through anaerobic digestion. The process involves digesting organic waste to extract methane and upgrading this methane into fuel. “This milestone demonstrates the scalability of these solutions and determination from farmers to reduce methane emissions in one of the nation’s largest agricultural regions”, said Brightmark LLC founder and chief executive Bob Powell. Nuray Elci, Chevron vice president for renewables, said, “Delivering first gas at 10 farms is a significant milestone”. “Transitioning to a lower carbon intensity energy economy demands, among other things, ambitious goals, innovation, and practical solutions”, Elci added. Lynn Boadwine of Boadwine Dairy Inc. said, “Additional revenue generated from the RNG we produce provides a viable and economic solution to address recurring waste and makes the transition toward a lower carbon intensity agriculture more attainable”. Jeremy VanEss of VanEss and Legacy Dairies said, “Lower carbon is important to us, and it’s exciting to see this technology become operational and help put our organic waste to use while striving to reduce our carbon footprint”. Last year Brightmark RNG expanded its operations to the Southwestern U.S. by opening a facility in Eloy, Arizona.

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Chevron Names Laura Lane as New VP

Chevron Corp. has appointed Laura Lane as its new Vice President and Chief Corporate Affairs Officer, effective February 1, 2025. The company said in a media release that Lane will oversee its government affairs, communications, and social investment activities. Chevron stated that Lane will be based in Houston and is taking the spot over from Al Williams, who is retiring in April, having served the company for 34 years. “Laura’s background in both the private and public sectors, her proven leadership in complex global organizations and experience working in diverse geographic locations make her well-suited to lead Chevron’s global corporate affairs activities”, Mike Wirth, Chairman and CEO, said. “I’m grateful to Al for the contributions he’s made to Chevron’s success over the course of his career”, Wirth added. “Al has been an accomplished leader in Upstream, Downstream, Midstream, and as a corporate officer”. Lane was EVP and chief corporate affairs and sustainability officer at UPS. Before joining UPS, Lane occupied high-level roles at Citigroup and Time Warner, Chevron said. Additionally, Lane worked in a senior government capacity at the office of the U.S. Trade Representative and as a diplomat in the Foreign Service with the U.S. Department of State. Lane earned a master’s degree from Georgetown University and a bachelor’s degree from Loyola University Chicago, Chevron said. To contact the author, email [email protected] What do you think? We’d love to hear from you, join the conversation on the Rigzone Energy Network. The Rigzone Energy Network is a new social experience created for you and all energy professionals to Speak Up about our industry, share knowledge, connect with peers and industry insiders and engage in a professional community that will empower your career in energy. MORE FROM THIS AUTHOR

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Biden’s clean AI infrastructure plan could be hanging by a thread

“There is barely an aspect of our society that will remain untouched by this force of change,” said UK Prime Minister Keir Starmer in a foreword to the report. “This government will not sit back passively and wait for change to come. It is our responsibility to harness it and make it work for working people.” Litan described the UK plan as “farther reaching and addressing AI data and the workforce, so it is more comprehensive and seems more thoughtful.” Asked for comment on the two strategies, Phil Brunkard, executive counselor at Info-Tech Research Group UK, said, “the US plans to lead the global AI race by combining its national security goals with sustainable infrastructure. Under the new executive order, the DoD and DoE will lease federal land for the private sector to build out AI data centers powered by clean energy, like nuclear, solar, or wind. The gist of their plan is to lead the way in responsible AI development to keep the US as the technology leader while being mindful of the environmental impact.” Meanwhile, the UK’s AI Opportunities Action Plan, he said, “is heavily reliant on collaboration with academia and industry partners, backed by significant private sector investments in AI infrastructure. But its success will depend on how effectively it can solve energy and cooling challenges, especially in areas with limited resources.” Brunkard added, “by focusing on domestic AI production and ethical oversight, the UK is hoping to balance innovation with responsibility, which is an essential step in building long-term technological resilience.” Both plans, he said, “recognize that AI dominance requires more than just the latest and greatest cutting-edge technology; it’s about building solid infrastructure, securing data, and governing AI ethically. While the US emphasizes security and clean energy, the UK focuses on self-reliance and strong regulatory

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Qualcomm purloins Intel’s chief Xeon designer with eyes toward data center development

If Intel was hoping for a turnaround in 2025, it will have to wait at least a little bit longer. The chief architect for Intel’s Xeon server processors has defected to chip rival Qualcomm, which is making yet another run at entering the data center market. Sailesh Kottapalli, a 28-year Intel veteran and a senior fellow and chief architect for the company’s Xeon processors, made the announcement on LinkedIn on January 13, stating that he joined Qualcomm as a senior vice president. “My journey took me through roles as a validation engineer, logic designer, full-chip floor planner, post-silicon debug engineer, micro architect, and architect,” he wrote. “I worked on CPU cores, memory, IO, and platform aspects of the system, spanning multiple architectures across x86 and Itanium, and products including CPU and GPU, most importantly shaping the Xeon product line.”

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8 Trends That Will Shape the Data Center Industry In 2025

What lies ahead for the data center industry in 2025? At Data Center Frontier, our eyes are always on the horizon, and we’re constantly talking with industry thought leaders to get their take on key trends. Our Magic 8 Ball prognostications did pretty well last year, so now it’s time to look ahead at what’s in store for the industry over the next 12 months, as we identify eight themes that stand to shape the data center business going forward. We’ll be writing in more depth about many of these trends, but this list provides a view of the topics that we believe will be most relevant in 2025. A publication about the future frontiers of data centers and AI shouldn’t be afraid to put it’s money where its mouth is, and that’s why we used AI tools to help research and compose this year’s annual industry trends forecast. The article is meant to be a bit encyclopedic in the spirit of a digest, less than an exactly prescriptive forecast – although we try to go there as well. The piece contains some dark horse trends. Do we think immersion cooling is going to explode this year, suddenly giving direct-to-chip a run for its money? Not exactly. But do we think that, given the enormous and rapidly expanding parameters of the AI and HPC boom, the sector for immersion cooling could see some breakthroughs this year? Seems reasonable. Ditto for the trends forecasting natural gas and quantum computing advancements. Such topics are definitely on the horizon and highly visible on the frontier of data centers, so we’d better learn more about them, was our thought. Because as borne out by recent history, data center industry trends that start at the bleeding edge (pun intended – also, on the list) sometimes

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Podcast: Data Center and AI Sustainability Imperatives with iMasons Climate Accord Executive Director, Miranda Gardiner

Miranda was a featured speaker at last September’s inaugural Data Center Frontier Trends Summit. The call for speakers is now open for this year’s event, which will be held again in Reston, Virginia from Aug. 26-28. DCF Show Podcast Quotes from Miranda Gardiner, Executive Director, iMasons Climate Accord On Her Career Journey and Early Passion for Sustainability:   – “My goals have always been kind of sustainability, affordable housing. I shared a story last week on a panel that my mother even found a yearbook of me from my elementary school years. The question that year was like, what do you hope for the future? And mine was there’d be no pollution and everyone would have a home.” On Transitioning to Data Centers:   – “We started to see this mission-critical focus in facilities like data centers, airports, and healthcare buildings. For me, connecting sustainability into the performance of the building made data centers the perfect match.” Overview of the iMasons Climate Accord:   – “The iMasons Climate Accord is an initiative started in 2022. The primary focus is emission reductions, and the only requirement to join is having an emission reduction strategy.”   – “This year, we refined our roadmap to include objectives such as having a climate strategy, incentivizing low-GHG materials like green concrete, and promoting equity by supporting small, women-owned, and minority-owned businesses.” On Industry Collaboration and Leadership:   – “This year, through the Climate Accord, we issued a call to action on the value of environmental product declarations (EPDs). It was signed by AWS, Digital Realty, Google, Microsoft, Schneider Electric, and Meta—talk about a big initiative and impact!” On EPDs and Carbon Disclosure:   – “EPDs provide third-party verification of materials coming into buildings. Pairing that with the Open Compute Project’s carbon disclosure labels on equipment creates vast opportunities for transparency and

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Accelsius and iM Data Centers Demo Next-Gen Cooling and Sustainability at Miami Data Center

Miami Data Center Developments Update Miami has recently witnessed several significant developments and investments in its data center sector, underscoring the city’s growing importance as a digital infrastructure hub. Notable projects include: Project Apollo:  A proposed 15-megawatt (MW), two-story, 75,000-square-foot data center in unincorporated Miami-Dade County. With an estimated investment of $150 million, construction is slated to commence between 2026 and 2027. The development team has prior experience with major companies such as Amazon, Meta, and Iron Mountain.  RadiusDC’s Acquisition of Miami I:  In August 2024, RadiusDC acquired the Miami I data center located in the Sweetwater area. Spanning 170,000 square feet across two stories, the facility currently offers 3.2MW of capacity, with plans to expand to 9.2 MW by the first half of 2026. The carrier-neutral facility provides connectivity to 11 fiber optic and network service providers.  Iron Mountain’s MIA-1 Data Center: Iron Mountain is developing a 150,000-square-foot, 16 MW data center on a 3.4-acre campus in Central North West Miami. The facility, known as MIA-1, is scheduled to open in 2026 and aims to serve enterprises, cloud providers, and large-scale users in South Florida. It will feature fiber connections to other Iron Mountain facilities and a robust pipeline of carriers and software-defined networks.  EDGNEX’s Investment Plans:  As of this month, Dubai, UAE-based EDGNEX has announced plans to invest $20 billion in the U.S. data center market, with the potential to double this investment. This plan includes a boutique condo project in Miami, estimated to have a $1 billion gross development value, indicating a significant commitment to the region’s digital infrastructure.  All of these developments highlight Miami’s strategic position as a connectivity hub, particularly serving as a gateway to Latin America and the Caribbean. The city’s data center market is characterized by steady growth, with a focus on retail colocation and

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Tract Capital Unveils Fleet Data Centers, Specializing In 500 MW+ Build-to-Suit Megacampuses

Tract Capital has announced the launch of Fleet Data Centers, a new platform dedicated to the development of mega-scale data center campuses with capacities of 500 MW or more, specifically designed for single-user customers.  The initiative is led by Grant van Rooyen, CEO of Tract Capital and Executive Chairman of Fleet Data Centers, and Chris Vonderhaar, the newly appointed President of Fleet Data Centers.  Vonderhaar brings extensive experience to the role, having served as Vice President of Demand and Supply Management at Google Cloud and as a senior leader at Amazon Web Services (AWS) for over a decade, where he oversaw the design, planning, construction, and operation of AWS’s global data center platform.  The Fleet leadership team also includes veterans from hyperscalers, wholesale data center providers, network infrastructure firms, and equipment vendors, with a collective track record of deploying dozens of gigawatts of data center capacity across hundreds of facilities globally. A Two Prong Strategy Defining two distinct strategies, Fleet is the mega-campus vertical development arm of Tract Capital, an alternative asset manager specializing in scaling digital infrastructure, which also operates Tract to refine development sites at ground level for data centers in terms of lining up power, fiber, zoning and entitlements.  Fleet Data Centers will aim to address the next phase of hyperscale data center growth by offering customized gigawatt-level campuses that provide predictability, flexibility, and scalability for hyperscalers navigating increasing infrastructure demands. This new venture from Tract Capital underscores the growing need for innovative, large-scale digital infrastructure solutions, particularly as hyperscalers face mounting challenges in scaling their global platforms to meet the demands of the digital age. The unveiling of Fleet is just another example of the way Tract Capital has consistently demonstrated its expertise in accelerating the scaling of responsible technology infrastructure, combining operational capabilities from industry

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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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