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Winning the war against adversarial AI needs to start with AI-native SOCs

Join our daily and weekly newsletters for the latest updates and exclusive content on industry-leading AI coverage. Learn More Faced with increasingly sophisticated multi-domain attacks slipping through due to alert fatigue, high turnover and outdated tools, security leaders are embracing AI-native security operations centers (SOCs) as the future of defense. This year, attackers are setting […]

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Faced with increasingly sophisticated multi-domain attacks slipping through due to alert fatigue, high turnover and outdated tools, security leaders are embracing AI-native security operations centers (SOCs) as the future of defense.

This year, attackers are setting new speed records for intrusions by capitalizing on the weaknesses of legacy systems designed for perimeter-only defenses and, worse, of trusted connections across networks.

Attackers trimmed 17 minutes off their average eCrime intrusion activity time results over the last year and reduced the average breakout time for eCrime intrusions from 79 minutes to 62 minutes in just a year. The fastest observed breakout time was just two minutes and seven seconds.

Attackers are combining generative AI, social engineering, interactive intrusion campaigns and an all-out assault on cloud vulnerabilities and identities. With this playbook they seek to capitalize on the weaknesses of organizations with outdated or no cybersecurity arsenals in place.   

“The speed of today’s cyberattacks requires security teams to rapidly analyze massive amounts of data to detect, investigate and respond to threats faster. This is the failed promise of SIEM [security information and event management]. Customers are hungry for better technology that delivers instant time-to-value and increased functionality at a lower total cost of ownership,” said George Kurtz, president, CEO and cofounder of cybersecurity company CrowdStrike.

“SOC leaders must find the balance in improving their detection and blocking capabilities. This should reduce the number of incidents and improve their response capabilities, ultimately reducing attacker dwell time,” Gartner writes in its report, Tips for Selecting the Right Tools for Your Security Operations Center.

AI-native SOCs: The sure cure for swivel-chair integration

Visit any SOC, and it’s clear most analysts are being forced to rely on “swivel-chair integration” because legacy systems weren’t designed to share data in real time with each other.

That means analysts are often swiveling their rolling chairs from one monitor to another, checking on alerts and clearing false positives. Accuracy and speed are lost in the fight against growing multi-domain attempts that are not intuitively obvious and distinct among the real-time torrent of alerts streaming in.

Here are just a few of the many challenges that SOC leaders are looking to an AI-native SOC to help solve:

Chronic levels of alert fatigue: Legacy systems, including SIEMs, are producing an increasingly overwhelming number of alerts for SOC analysts with to track and analyze. SOC analysts who spoke on anonymity said that four out of every 10 alerts they produce are false positives. Analysts often spend more time triaging false positives than investigating actual threats, which severely affects productivity and response time. Making an SOC AI-native would make an immediate dent in this time, which every SOC analyst and leader has to deal with on a daily basis.

Ongoing talent shortage and churn: Experienced SOC analysts who excel at what they do and whose leaders can influence budgets to get them raises and bonuses are, for the most part, staying put in their current roles. Kudos to the organizations who realize investing in retaining talented SOC teams is core to their business. A commonly cited statistic is that there is a global cybersecurity workforce gap of 3.4 million professionals. There is indeed a chronic shortage of SOC analysts in the industry, so it’s up to organizations to close the pay gaps and double down on training to grow their teams internally. Burnout is pervasive in understaffed teams who are forced to rely on swivel-chair integration to get their jobs done.

Multi-domain threats are growing exponentially. Adversaries, including cybercrime gangs, nation-states and well-funded cyber-terror organizations, are doubling down on exploiting gaps in endpoint security and identities. Malware-free attacks have been growing throughout the past year, increasing in their variety, volume and ingenuity of attack strategies. SOC teams protecting enterprise software companies developing AI-based platforms, systems and new technologies are being especially hard-hit. Malware-free attacks are often undetectable, trading on trust in legitimate tools, rarely generating a unique signature, and relying on file-less execution. Kurtz told VentureBeat that attackers who target endpoint and identity vulnerabilities frequently move laterally within systems in under two minutes. Their advanced techniques, including social engineering, ransomware-as-a-service (RaaS), and identity-based attacks, demand faster and more adaptive SOC responses.

Increasingly complex cloud configurations increase the risks of an attack. Cloud intrusions have surged by 75% year-over-year, with adversaries exploiting native cloud vulnerabilities such as insecure APIs and identity misconfigurations. SOCs often struggle with limited visibility and inadequate tools to mitigate threats in complex multicloud environments.

Data overload and tool sprawl create defense gaps that SOC teams are called on to fill. Legacy perimeter-based systems, including many decades-old SIEM systems, struggle to process and analyze the immense amount of data generated by modern infrastructure, endpoints, and sources of telemetry data. Asking SOC analysts to keep on top of multiple sources of alerts and reconcile data across disparate tools slows their effectiveness, leads to burnout and holds them back from achieving the necessary accuracy, speed and performance.

How AI is improving SOC accuracy, speed and performance

“AI is already being used by criminals to overcome some of the world’s cybersecurity measures,” warns Johan Gerber, executive vice president of security and cyber innovation at MasterCard. “But AI has to be part of our future, of how we attack and address cybersecurity.”

“It’s extremely hard to go out and do something if AI is thought about as a bolt-on; you have to think about it [as integral],” Jeetu Patel, EVP and GM of security and collaboration for Cisco, told VentureBeat, citing findings from the 2024 Cisco Cybersecurity Readiness Index. “The operative word over here is AI being used natively in your core infrastructure.”

Given the many accuracy, speed and performance advantages of transitioning to an AI-native SOC, it’s understandable why Gartner is supportive of the idea. The research firm predicts that by 2028, multi-agent AI in threat detection and incident response (including within SOCs) will increase from 5% to 70% of AI implementations — primarily augmenting, not replacing, staff.

Chatbots making an impact

Core to the value that AI-driven SOCs bring to cybersecurity and IT teams are accelerated threat detection and triage based on improved predictive accuracy using real-time telemetry data.

SOC teams report that AI-based tools, including chatbots, are providing faster turnarounds on a broad spectrum of queries, from simple analysis to more complex analysis of anomalies. The latest generation of chatbots designed to streamline SOC workflows and assist security analysts include CrowdStrike’s Charlotte AI, Google’s Threat Intelligence Copilot, Microsoft Security Copilot, Palo Alto Networks’ series of AI Copilots, and SentinelOne Purple AI.

Graph databases are core to SOCs’ future

Graph database technologies are helping defenders see their vulnerabilities as attackers do. Attackers think in terms of traversing the system graph of a business, while SOC defenders have traditionally relied on lists they use to cycle through deterrent-based actions. The graph database arms race aims to get SOC analysts to parity with attackers when it comes to tracking threats, intrusions and breaches across the graph of their identities, systems and networks.  

AI is already proving effective in reducing false positives, automating incident responses, enhancing threat analysis and continually finding new ways to streamline SOC operations.

Combining AI with graph databases is also helping SOCs track and stop multi-domain attacks. Graph databases are core to SOC’s future because they excel at visualizing and analyzing interconnected data in real time, enabling faster and more accurate threat detection, attack path analysis, and risk prioritization.

John Lambert, corporate vice president for Microsoft Security Research, underscored the critical importance of graph-based thinking for cybersecurity, explaining to VentureBeat, “Defenders think in lists, cyberattackers think in graphs. As long as this is true, attackers win.”

AI-native SOCs need humans in the middle to reach their potential

SOCs that are deliberate in designing human-in-the-middle workflows as a core part of their AI-native SOC strategies are best positioned for success. The overarching goal needs to be strengthening SOC analysts’ knowledge and providing them with the data, insights and intelligence they need to excel and grow in their roles. Also implicit in a human-in-the-middle workflow design is retention.

Organizations that have created a culture of continuous learning and see AI as a tool for accelerating training and on-the-job results are already ahead of competitors. VentureBeat continues to see SOCs that put a high priority on enabling analysts to focus on complex, strategic tasks, while AI manages routine operations, retaining their teams. There are many stories of small wins, like stopping an intrusion or a breach. AI should not be seen as a replacement for SOC analysts or for experienced human threat hunters. Instead, AI apps and platforms are tools that threat hunters need to protect enterprises better.

AI-driven SOCs can significantly reduce incident response times, with some organizations reporting up to a 50% decrease. This acceleration enables security teams to address threats more promptly, minimizing potential damage.

AI’s role in SOCs is expected to expand, incorporating proactive adversary simulations, continuous health monitoring of SOC ecosystems, and advanced endpoint and identity security through zero-trust integration. These advancements will further strengthen organizations’ defenses against evolving cyber threats.

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F5 tackles AI security with new platform extensions

F5 AI Guardrails deploys as a proxy between users and AI models. Wormke describes it as being inserted as a proxy layer at the “front door” of AI interaction, between AI applications, users and agents. It intercepts prompts before they reach the model and analyzes outputs before they return to

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AWS European cloud service launch raises questions over sovereignty

There are examples of similar scenarios in recent years. The International Criminal Court’s chief prosecutor was reportedly shut out of Microsoft applications following the imposition of US sanctions, for example. Other instances include Adobe cutting off Venezuelan customers in compliance with US sanctions against that country in 2019, while Microsoft

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IP Fabric 7.9 boosts visibility across hybrid environments

Multicloud and hybrid network viability has also been extended to include IPv6 path analysis, helping teams reason about connectivity in dual-stack and hybrid environments. This capability addresses a practical challenge for enterprises deploying IPv6 alongside existing IPv4 infrastructure. Network teams can now validate that applications can reach IPv6 endpoints and

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Murphy Oil Makes Noncommercial Find in Ivorian Frontier Campaign

Murphy Oil Corp said Monday it had encountered noncommercial quantities of hydrocarbons in the first of its three-well exploration campaign offshore Côte d’Ivoire. “A key outcome at Civette is that we confirmed the presence of hydrocarbons in this frontier play – a meaningful success in early-stage exploration”, president and chief executive Eric Hambly said in an online statement. “While Civette did not meet commercial thresholds, the well provided insights that strengthen our subsurface understanding for the potential of the [Tano] basin and inform the remaining prospectivity on the CI-502 Block”. The Houston, Texas-based oil and gas explorer and developer had placed a gross resource potential of 440-1,000 million barrels of oil equivalent (MMboe) on Civette, according to Murphy Oil’s investor presentation on January 7, 2026. The Civette well is in Block CI-502. The company said Monday it would continue with the Bubale prospect in Block CI-709 and the Caracal prospect in CI-102, “both targeting independent plays with significant resource potential”. According to the investor presentation, the gross resource potential for Bubale and Caracal is 340-850 MMboe and 150-360 MMboe respectively. They are scheduled to be spudded this year. The three blocks are among five held by Murphy Oil in the West African country. The five, all in deep waters, are co-owned with Société Nationale d’Opérations Pétrolières de la Côte d’Ivoire, the American company holding 85-90 percent operating interests. The licenses, acquired 2023, cover about 1.5 million gross acres in the Tano basin, according to Murphy Oil. Murphy Oil was scheduled to submit a development plan for the Paon discovery in Block CI-103 to Ivorian authorities by the end of 2025, according to the company’s annual report for 2024. Elsewhere, Murphy Oil has scheduled two more spuds in Vietnam this year, both appraisal wells for last year’s Hai Su Vang oil discovery.

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Gas Analyst Flags ‘Historic Cold’

In an EBW Analytics Group report sent to Rigzone by the EBW team on Tuesday, Eli Rubin, an energy analyst at the company, noted that “historic cold launche[d]… soaring NYMEX gas futures”. “Frigid weather is set to reshape the near-term natural gas outlook as Arctic air masses flash across the eastern U.S. and the huge weather demand gain over the MLK [Martin Luther King Jr.] weekend threatens severe market dislocation,” Rubin said in the report. “DTN’s 278 gHDDs for Week 2 presents chances for the coldest weekly gHDD total since February 2021,” he added. “Saturday may reach 45 gHDDs – threatening production freeze-offs as Marcellus temps drop toward 0°F and the Bakken reaches -25°F. Risks are high for Rockies, MidCon, and Texas, but the current outlook suggests limited regional supply losses,” he continued. “Still, spot prices are likely to spike into the weekend. Weather models often misjudge the magnitude and extent of severe cold – and any shifts colder could put more supply at risk,” he said. Rubin went on to state in the report that the “frigid weather pivot comes with speculator short positions at a 14-month high – suggesting further bullish risks as shorts are forced to buy back gas”. The EBW analyst warned in the report, however, that volatility will stay high, and said any weather model warming into mid-February could allow a near-term price spike to eventually soften. Rubin highlighted in the EBW report that, “fundamentally, the immediate-term consequences of cold may be to wipe out the 190 billion cubic foot natural gas storage surplus to five-year norms in mid-January”. “While subject to a broad range of uncertainty depending on the magnitude and expanse of cold – and resulting production freeze-offs – current projections suggest a huge storage draw above 750 billion cubic feet over Weeks

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TotalEnergies, Bapco Launch Trading JV for Bahraini Fuels

TotalEnergies SE and Bahrain’s state-owned Bapco Energies have launched an equally owned trading platform to sell output from the Bapco refinery in the kingdom to the domestic and international markets. “As a competitive new player in the Middle East, BxT Trading will support Bahrain’s oil industry by leveraging its downstream portfolio for maximizing value and broadening its access to global markets”, said a joint statement online. “Through this joint venture, Bapco Energies will benefit from TotalEnergies’ global expertise in trading and will develop advanced trading, pricing, analysis and risk management capabilities. “With BxT Trading, TotalEnergies is strengthening its trading position in the Middle East, where the company already has trading activities, in addition to its international hubs in Houston, Geneva and Singapore. “This new initiative enhances the trading teams’ responsiveness and agility, reinforcing their local footprint that enables them to better address regional specificities”. Bapco Energies chair Nasser bin Hamad Al Khalifa said, “Through this partnership with TotalEnergies, we are enhancing our global trading capabilities, strengthening our downstream value chain and reinforcing Bahrain’s position as a competitive and trusted player in the international energy markets”. The Bapco refinery has a capacity of 380,000 barrels per day (bpd), increased 42 percent under a “modernization program”, Bapco Energies says on its website. The upgrade included the installation of a hydrocracking unit designed to convert 78 percent of lower-grade feedstock into distillates, which are then refined into high-margin diesel and kerosene, according to Bapco Energies. In its trading and shipping segment, TotalEnergies last year sold 2.28 million bpd of petroleum products to external customers, up from 1.95 million bpd in 2023, according to the company’s annual report. “The activities of Trading & Shipping are focused primarily on serving the needs of TotalEnergies, and mainly include selling and marketing the TotalEnergies’ crude oil production; providing

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India Is Now UAE’s Largest Customer of LNG

India is now the United Arab Emirates’ (UAE) largest customer of LNG, ADNOC Gas said in a release sent to Rigzone by the ADNOC Gas team on Monday. The company noted in the release that 20 percent of LNG operated by ADNOC Gas will be supplied to India by 2029, revealing that $20 billion worth of LNG contracts were signed in last 24 months between ADNOC Gas and Indian companies. In Monday’s release, ADNOC Gas announced the signing of a sales and purchase agreement valued at between $2.5 billion and $3 billion for a period of ten years with Hindustan Petroleum Corporation Limited (HPCL). The latest agreement was announced during a visit to India by President Sheikh Mohamed bin Zayed Al Nahyan, where he met with the Indian Prime Minister, Narendra Modi, the release noted. It added that, during the visit, Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, and Vikas Kaushal, Chairman and Managing Director of Hindustan Petroleum Corporation Limited, exchanged the signed contract, “reiterating the importance of the growing relationship between ADNOC, its partners, and customers in India”. The deal converted a previously signed heads of agreement between the two companies into a long-term SPA, the release highlighted, pointing out that the agreement is for the export of 0.5 million tons per annum of LNG. “The milestone agreement represents a further step in strengthening the strategic partnership between the UAE and India, while reinforcing ADNOC Gas’ role as a reliable and trusted supplier of LNG to Asia’s fast-growing markets,” ADNOC Gas said in the release. “India is now the UAE’s largest customer and a very important part of ADNOC Gas’ LNG strategy. The company’s growth is tied to the continued success of India,” it added.   By 2029 ADNOC

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EnBW Gives Up 2 Irish Sea Wind Projects with BP-JERA JV

JERA Nex BP Ltd is acquiring co-venturer EnBW Energie Baden-Württemberg AG’s (EnBW) stake in the Mona wind project in United Kingdom waters, while the partners dropped the Morgan offshore wind project. Planned to rise in the Irish Sea, the two projects had a potential combined capacity of three gigawatts (GW). Only up to half of that would be pursued under the joint venture between Japanese utility JERA Co Inc and British energy giant BP PLC through Mona, according to separate online statements by JERA Nex BP and German utility EnBW. EnBW said it no longer wanted to proceed with Mona and Morgan after the projects failed to win government support through contracts for difference in the recently completed allocation round held by the UK’s Energy Security and Net Zero Department. “At the same time, offshore wind energy remains an important business field for EnBW as it expands renewable energy capacity”, EnBW said. “By 2030, the installed output from renewable energies is set to be further expanded from the current figure of approximately seven GW to at least 10-11.5 GW. “The current focus is on completing the construction and commissioning of the 960-MW He Dreiht offshore wind farm in the German North Sea this summer. Furthermore, EnBW is developing its 1,000-MW Dreekant project in the German North Sea”. An earlier EnBW statement said that besides the failed bids for contracts for difference, other factors that rendered the projects “no longer economically viable as per EnBW’s standards” included “significant cost increases across the supply chain, higher interest rates and ongoing project implementation risks”. “EnBW is in the midst of the largest investment program in its corporate history”, EnBW said in the earlier statement. “The company plans to invest up to EUR 50 billion [$58.62 billion] by 2030. Due to the wide range of investment

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Horizontal vs vertical AI solutions: ROI requires going deep, not wide

In 2025, the Massachusetts Institute of Technology (MIT) released a report that jarred many in the business and investment world. This much-discussed report states that, despite investments of between $30 billion and $40 billion in generative artificial intelligence (AI), 95% of organizations receive “zero return.”  While debate has surrounded the methodology and conclusions, the report itself focuses on the two broad typologies of generative AI applications: horizontal and vertical. “Horizontal” AI includes Chatbots, co-pilots that are meant to make me, as an individual contributor, quicker, better, and faster,” said Doug Croy, Data Advisory Lead for 1898 & Co. “The value driven by horizontal AI is going to reflect on only me and how I do my work.”  They are not integrated with work processes, nor are the processes changed or optimized to take advantage of generative AI. The transformative value and measurable ROI of AI, however, come from the implementation of vertical AI, process-aligned and industry-aware solutions that apply AI to workflows and patterns across an organization. Whereas horizontal AI has broad knowledge that can help you write recipes, vertical AI solutions are focused on specific industries, domains, with knowledge of terminology, relationships, processes, logic and accuracy. For example, generative AI can identify text in technical drawings, photos and scanned documents, as well as identify objects such as pumps, valves and other equipment found in a power plant. But reading text or identifying an object is not the same as understanding context, the business process and industry-specific language and challenges.  That’s what distinguishes vertical AI; it not only identifies the object with a name or type but also understands the object’s function, behavior and purpose in relation to other objects or assets in a diagram that represents a system, including equipment hierarchies, asset relationships, and safety considerations.  “What you need

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Recent compute infrastructure investments signal Big Tech’s AI priorities for 2026

According to research by Morgan Stanley, global data center capacity will need to grow six-fold by 2035 just to meet the demands of cloud computing and AI, while McKinsey forecasts that global demand for data center capacity could almost triple as early as 2030, with about 70% of that demand coming from AI workloads.  Both rising AI adoption and the growing compute-hungry use cases drive the need for greater computing power. Governments are investing heavily in AI to ensure economic and military security and drive tech independence. At the same time, enterprises turn to solutions such as agentic AI and generative AI video to gain a competitive edge. Agentic AI infrastructure is the new must-have Deloitte picks agentic AI as one of the top trends driving AI compute needs in the next year, speculating that it could overtake SaaS tools. According to its research, up to 75% of companies may invest in agentic AI in 2026, driving demand for chips, data centers and AI infrastructure. A mass of data backs up Deloitte’s estimates. Cisco forecasts that 56% of customer service and support interactions with tech vendors will be handled by agentic AI by the end of 2026, rising to 68% by 2028. The use of agentic AI has triggered an 8% drop in demand for software development skills.  Even IoT Analytics’ negative report about AI investments acknowledges that today’s projections could be insufficient if agentic AI delivers on its promise to automate workflows at scale.  AI generative video is in high demand GenAI video is starting to appear everywhere. By May 2025, four of the top ten most popular YouTube channels had AI-generated material in every video, and it’s predicted that by 2027, more than 60% of all digital video will be AI-generated, at least in part. And that’s only

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RISC-V chip designer SiFive integrates Nvidia NVLink Fusion to power AI data centers

RISC-V pioneer SiFive has signed a deal with Nvidia to incorporate Nvidia NVLink Fusion into its data center products. The agreement means that SiFive will be able to connect its RISC-V CPUs to Nvidia GPUs and accelerators over a high bandwidth interconnect that lets multiple GPUs share compute and memory resources, offering more options to operators of AI data centers. Historically, RISC-V technology has not had access to these types of high-level interconnects and pathways. In a statement, Patrick Little, president and CEO of SiFive, said, “AI infrastructure is no longer built from generic components, it is co-designed from the ground up. By integrating NVLink Fusion with SiFive’s high-performance compute subsystems, we’re enabling customers with an open and customizable CPU platform that pairs seamlessly with Nvidia’s AI Infrastructure to deliver exceptional efficiency at data center scale.”

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NVIDIA’s Rubin Redefines the AI Factory

The Architecture Shift: From “GPU Server” to “Rack-Scale Supercomputer” NVIDIA’s Rubin architecture is built around a single design thesis: “extreme co-design.” In practice, that means GPUs, CPUs, networking, security, software, power delivery, and cooling are architected together; treating the data center as the compute unit, not the individual server. That logic shows up most clearly in the NVL72 system. NVLink 6 serves as the scale-up spine, designed to let 72 GPUs communicate all-to-all with predictable latency, something NVIDIA argues is essential for mixture-of-experts routing and synchronization-heavy inference paths. NVIDIA is not vague about what this requires. Its technical materials describe the Rubin GPU as delivering 50 PFLOPS of NVFP4 inference and 35 PFLOPS of NVFP4 training, with 22 TB/s of HBM4 bandwidth and 3.6 TB/s of NVLink bandwidth per GPU. The point of that bandwidth is not headline-chasing. It is to prevent a rack from behaving like 72 loosely connected accelerators that stall on communication. NVIDIA wants the rack to function as a single engine because that is what it will take to drive down cost per token at scale. The New Idea NVIDIA Is Elevating: Inference Context Memory as Infrastructure If there is one genuinely new concept in the Rubin announcements, it is the elevation of context memory, and the admission that GPU memory alone will not carry the next wave of inference. NVIDIA describes a new tier called NVIDIA Inference Context Memory Storage, powered by BlueField-4, designed to persist and share inference state (such as KV caches) across requests and nodes for long-context and agentic workloads. NVIDIA says this AI-native context tier can boost tokens per second by up to 5× and improve power efficiency by up to 5× compared with traditional storage approaches. The implication is clear: the path to cheaper inference is not just faster GPUs.

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Power shortages, carbon capture, and AI automation: What’s ahead for data centers in 2026

“Despite a broader use of AI tools in enterprises and by consumers, that does not mean that AI compute, AI infrastructure in general, will be more evenly spread out,” said Daniel Bizo, research director at Uptime Institute, during the webinar. “The concentration of AI compute infrastructure is only increasing in the coming years.” For enterprises, the infrastructure investment remains relatively modest, Uptime Institute found. Enterprises will limit investment to inference and only some training, and inference workloads don’t require dramatic capacity increases. “Our prediction, our observation, was that the concentration of AI compute infrastructure is only increasing in the coming years by a couple of points. By the end of this year, 2026, we are projecting that around 10 gigawatts of new IT load will have been added to the global data center world, specifically to run generative AI workloads and adjacent workloads, but definitely centered on generative AI,” Bizo said. “This means these 10 gigawatts or so load, we are talking about anywhere between 13 to 15 million GPUs and accelerators deployed globally. We are anticipating that a majority of these are and will be deployed in supercomputing style.” 2. Developers will not outrun the power shortage The most pressing challenge facing the industry, according to Uptime, is that data centers can be built in less than three years, but power generation takes much longer. “It takes three to six years to deploy a solar or wind farm, around six years for a combined-cycle gas turbine plant, and even optimistically, it probably takes more than 10 years to deploy a conventional nuclear power plant,” said Max Smolaks, research analyst at Uptime Institute. This mismatch was manageable when data centers were smaller and growth was predictable, the report notes. But with projects now measured in tens and sometimes hundreds of

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Google warns transmission delays are now the biggest threat to data center expansion

The delays stem from aging transmission infrastructure unable to handle concentrated power demands. Building regional transmission lines currently takes seven to eleven years just for permitting, Hanna told the gathering. Southwest Power Pool has projected 115 days of potential loss of load if transmission infrastructure isn’t built to match demand growth, he added. These systemic delays are forcing enterprises to reconsider fundamental assumptions about cloud capacity. Regions including Northern Virginia and Santa Clara that were prime locations for hyperscale builds are running out of power capacity. The infrastructure constraints are also reshaping cloud competition around power access rather than technical capabilities. “This is no longer about who gets to market with the most GPU instances,” Gogia said. “It’s about who gets to the grid first.” Co-location emerges as a faster alternative to grid delays Unable to wait years for traditional grid connections, hyperscalers are pursuing co-location arrangements that place data centers directly adjacent to power plants, bypassing the transmission system entirely. Pricing for these arrangements has jumped 20% in power-constrained markets as demand outstrips availability, with costs flowing through to cloud customers via regional pricing differences, Gogia said. Google is exploring such arrangements, though Hanna said the company’s “strong preference is grid-connected load.” “This is a speed to power play for us,” he said, noting Google wants facilities to remain “front of the meter” to serve the broader grid rather than operating as isolated power sources. Other hyperscalers are negotiating directly with utilities, acquiring land near power plants, and exploring ownership stakes in power infrastructure from batteries to small modular nuclear reactors, Hanna said.

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OpenAI turns to Cerebras in a mega deal to scale AI inference infrastructure

Analysts expect AI workloads to grow more varied and more demanding in the coming years, driving the need for architectures tuned for inference performance and putting added pressure on data center networks. “This is prompting hyperscalers to diversify their computing systems, using Nvidia GPUs for general-purpose AI workloads, in-house AI accelerators for highly optimized tasks, and systems such as Cerebras for specialized low-latency workloads,” said Neil Shah, vice president for research at Counterpoint Research. As a result, AI platforms operating at hyperscale are pushing infrastructure providers away from monolithic, general-purpose clusters toward more tiered and heterogeneous infrastructure strategies. “OpenAI’s move toward Cerebras inference capacity reflects a broader shift in how AI data centers are being designed,” said Prabhu Ram, VP of the industry research group at Cybermedia Research. “This move is less about replacing Nvidia and more about diversification as inference scales.” At this level, infrastructure begins to resemble an AI factory, where city-scale power delivery, dense east–west networking, and low-latency interconnects matter more than peak FLOPS, Ram added. “At this magnitude, conventional rack density, cooling models, and hierarchical networks become impractical,” said Manish Rawat, semiconductor analyst at TechInsights. “Inference workloads generate continuous, latency-sensitive traffic rather than episodic training bursts, pushing architectures toward flatter network topologies, higher-radix switching, and tighter integration of compute, memory, and interconnect.”

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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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