Capacity development

xAI gets Memphis approval to run 15 gas turbines

xAI, Elon Musk’s AI company, has secured permits to operate 15 natural gas turbines at its Memphis data centre, despite facing legal threats over alleged Clean Air Act violations.

The Shelby County Health Department approved the generators, which can produce up to 247 megawatts, provided specific emissions controls are in place.

Environmental lawyers say xAI had already been running as many as 35 generators without permits. The Southern Environmental Law Center (SELC), acting on behalf of the NAACP, has accused the company of serious pollution and is preparing to sue.

Even under the new permit, xAI is allowed to emit substantial pollutants annually, including nearly 10 tons of formaldehyde — a known carcinogen.

Community concerns about the health impact remain strong. A local group pledged $250,000 for an independent air quality study, and although the City of Memphis carried out its own tests, the SELC questioned their validity.

The tests missed ozone levels and were reportedly conducted in favourable wind conditions, with equipment placed too close to buildings.

Officials previously argued that the turbines were exempt from regulation due to their ‘mobile’ status, a claim the SELC refuted as legally flawed. Meanwhile, xAI has recently raised $10 billion, split between debt and equity, highlighting its rapid expansion, even as regulatory scrutiny grows.

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Southern Water uses AI to cut sewer floods

AI used in the sewer system has helped prevent homes in West Sussex from flooding, Southern Water has confirmed. The system was able to detect a fatberg in East Lavington before it caused damage.

The AI monitors sewer flow patterns and distinguishes between regular use, rainfall and developing blockages. On 16 June, digital sensors flagged an anomaly—leading teams to clear the fatberg before wastewater could flood gardens or homes.

‘We’re spotting hundreds of potential blockages before it’s too late,’ said Daniel McElhinney, proactive operations control manager at Southern Water. AI has reduced internal flooding by 40% and external flooding by 15%, the utility said.

Around 32,000 sewer level monitors are in place, checking for unusual flow activity that could signal a blockage or leak. Blocked sewers remain the main cause of pollution incidents, according to the company.

‘Most customers don’t realise the average sewer is only the size of an orange,’ McElhinney added. Even a small amount of cooking fat, combined with unflushable items, can lead to fatbergs and serious disruption.

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EU PREVAIL project opens Edge AI platform to users in June

The European Union’s PREVAIL project is preparing to open its Edge AI services to external users in June 2025.

Coordinated by Europe’s top research and technology organisations—CEA-Leti, Fraunhofer-Gesellschaft, imec, and VTT—the initiative offers a shared, multi-hub infrastructure designed to speed up the development and commercialisation of next-generation Edge AI technologies.

Through its platform, European designers will gain access to advanced chip prototyping capabilities and full design support using standard commercial tools.

PREVAIL combines commercial foundry processes with advanced technology modules developed in partner clean rooms. These include embedded non-volatile memories (eNVM), silicon photonics, and 3D integration technologies such as silicon interposers and packaging innovations.

Initial demonstrators, already in development with industry partners, will serve as test cases to ensure compatibility with a broad range of applications and future scalability.

From July 2025, a €20 million EU-funded call under the ‘Low Power Edge AI’ initiative will help selected customers co-finance their access to the platform. Whether supported by EU funds or independently financed, users will be able to design chips using one of four shared platforms.

The consortium has also set up a user interface team to manage technical support and provide access to Process Design Kits and Design Rule Manuals.

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Cyberattacks drain millions from hospitality sector

The booming hospitality sector handles sensitive guest information daily, from passports to payment details, making it a prime target for cybercriminals. Recent figures reveal the average cost of a data breach in hospitality rose to $3.86 million in 2024, with over 14,000 critical vulnerabilities detected in hotel networks worldwide.

Complex systems connecting guests, staff, vendors, and devices like smart locks multiply entry points for attackers. High staff turnover and frequent reliance on temporary workers add to the sector’s cybersecurity challenges.

New employees are often more susceptible to phishing and social engineering attacks, as demonstrated by costly breaches such as the 2023 MGM Resorts incident. Artificial intelligence helps boost defences but isn’t a cure-all and must be used with staff training and clear policies.

Recent attacks on major hotel brands have exposed millions of customer records, intensifying pressure on hospitality firms to meet privacy regulations like GDPR. Maintaining robust cybersecurity requires continuous updates to policies, vendor checks, and committed leadership support.

Hotels lagging in these areas risk severe financial and reputational damage in an increasingly hostile cyber landscape.

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BT launches cyber training as small businesses struggle with threats

Cyber attacks aren’t just a problem for big-name brands. Small and medium businesses are increasingly in the crosshairs, according to new research from BT and Be the Business.

Two in five SMEs have never provided cyber security training to their staff, despite a sharp increase in attacks. In the past year alone, 42% of small firms and 67% of medium-sized companies reported breaches.

Phishing remains the most common threat, affecting 85% of businesses. But more advanced tactics are spreading fast, including ransomware and ‘quishing’ scams — where fake QR codes are used to steal data.

Recovering from a breach is costly. Micro and small businesses spend nearly £8,000 on average to recover from their most serious incident. The figure excludes reputational damage and long-term disruption.

To help tackle the issue, BT has launched a new training programme with Be the Business. The course offers practical, low-cost cyber advice designed for companies without dedicated IT support.

The programme focuses on real-world threats, including AI-driven scams, and offers guidance on steps like password hygiene, two-factor authentication, and safe software practices.

Although 69% of SME leaders are now exploring AI tools to help defend their systems, 18% also list AI as one of their top cyber threats — a sign of both potential and risk.

Experts warn that basic precautions still matter most. With free and affordable training options now widely available, small firms have more tools than ever to improve their cyber defences.

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OpenAI and Oracle join forces for massive AI data centre expansion

OpenAI had signed a significant cloud computing deal with Oracle worth $30 billion per year, aiming to secure around 4.5GW of capacity through the Stargate joint venture, in which Oracle is a key investor.

Oracle plans to develop several large-scale data centres across the United States, including a potential expansion of its Abilene, Texas, site from 1.2GW to 2GW.

According to reports from Bloomberg and the Financial Times, other locations under consideration include Michigan, Wisconsin, Wyoming, New Mexico, Georgia, Ohio, and Pennsylvania.

In addition to its collaboration with Oracle, OpenAI continues using Microsoft Azure as its primary cloud provider and works with CoreWeave and Google. Notably, OpenAI leverages Google’s custom TPUs in some operations.

Despite the partnerships, OpenAI is pursuing plans to build its data centre infrastructure. The company also intends to construct a Stargate campus in the United Arab Emirates, in collaboration with Oracle, Nvidia, Cisco, SoftBank, and G42, and is scouting global locations for future facilities.

The massive investment underscores OpenAI’s growing compute needs and the global scale of its AI ambitions.

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DeepSeek gains business traction despite security risks

Chinese AI company DeepSeek is gaining traction in global markets despite growing concerns about national security.

While government bans remain in place across several countries, businesses are turning to DeepSeek’s models for low cost and firm performance, often ranking just behind OpenAI’s ChatGPT and Google’s Gemini in traffic and market share.

DeepSeek’s appeal lies in its efficiency. With advanced engineering techniques like its ‘mixture-of-experts’ system, the company has reduced computing costs by activating fewer parameters without a noticeable drop in performance.

Training costs have reportedly been as low as $5.6 million — a fraction of what rivals like Anthropic spend. As a result, DeepSeek’s models are now available across major platforms, including AWS, Azure, Google Cloud, and even open-source repositories like GitHub and Hugging Face.

However, the way DeepSeek is accessed matters. While companies can safely self-host the models in private environments, using the mobile app or website means sending data to Chinese servers, a key reason for widespread bans on public-sector use.

Individual consumers often lack the technical control enterprises enjoy, making their data more vulnerable to foreign access.

Despite the political tension, demand continues to grow. US firms are exploring DeepSeek as a cost-saving alternative, and its models are being deployed in industries from telecoms to finance.

Even Perplexity, an American AI firm, has used DeepSeek R1 to power a research tool hosted entirely on Western servers. DeepSeek’s open-source edge and rapid technical progress are helping it close the gap with much larger AI competitors — quietly but significantly.

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Amazon reaches one million warehouse robots

Amazon has reached a major milestone with over one million robots now operating in its warehouses.

The one millionth robot, recently deployed to a facility in Japan, marks 13 years since the tech giant began introducing automation through its acquisition of Kiva Systems in 2012.

The robotic presence is fast approaching parity with Amazon’s human workforce, according to The Wall Street Journal. Robots now assist in around 75% of the company’s global deliveries.

The company continues to upgrade its robotic fleet, recently unveiling Vulcan — a dual-armed model equipped with a suction grip and a sense of touch to handle items more delicately.

Amazon is also introducing DeepFleet, a new generative AI model built using Amazon SageMaker.

Designed to optimise robotic movement within fulfilment centres, DeepFleet is expected to improve fleet speed by 10%. The model is trained on Amazon’s operational data, making it highly tailored to the company’s logistical network.

The expansion comes as Amazon opens next-generation fulfilment centres featuring ten times more robots instead of relying solely on existing warehouse models. The first of these facilities opened in late 2024 in Shreveport, Louisiana, signalling a shift toward even greater automation.

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Grammarly invests in email with Superhuman acquisition

Grammarly announced on Tuesday that it has acquired email client Superhuman to expand its AI capabilities within its productivity suite.

Financial details of the deal were not disclosed by either company. Superhuman, founded by Rahul Vohra, Vivek Sodera and Conrad Irwin, has raised over $114 million from investors such as a16z and Tiger Global, with a last valuation of $825 million.

Grammarly CEO Shishir Mehrotra said the acquisition will enable the company to bring enhanced AI collaboration to millions more professionals, adding that email is not just another app but a crucial platform where users spend significant time.

Superhuman’s CEO Rahul Vohra and his team are joining Grammarly, promising to invest further in improving the Superhuman experience and building AI agents that collaborate across everyday communication tools.

Recently, Superhuman introduced AI-powered features like scheduling, replies and email categorisation. Grammarly aims to leverage the technology to build smarter AI agents for email, which remains a top use case for its customers.

The move follows Grammarly’s acquisition of productivity software Coda last year and the promotion of Shishir Mehrotra to CEO.

In May, Grammarly secured $1 billion from General Catalyst through a non-dilutive investment, repaid by a capped percentage of revenue generated using the funds instead of equity.

The Superhuman deal further signals Grammarly’s commitment to integrating AI deeply into professional communication.

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Why AI won’t replace empathy at work

AI is increasingly being used to improve how organisations measure and support employee performance and well-being.

According to Dr Serena Huang, founder of Data with Serena and author of The Inclusion Equation, AI provides insights that go far beyond traditional annual reviews or turnover statistics.

AI tools can detect early signs of burnout, identify high-potential staff, and even flag overly controlling management styles. More importantly, they offer the potential to personalise development pathways based on employee needs and aspirations.

Huang emphasises, however, that ethical use is vital. Transparency and privacy must remain central to ensure AI empowers rather than surveils workers. Far from making human skills obsolete, Huang argues that AI increases their value.

With machines handling routine analysis, people are free to focus on complex challenges and relationship-building—critical skills in sales, leadership, and team dynamics. AI can assist, but it is emotional intelligence and empathy that truly drive results.

To ensure data-driven efforts align with business goals, Huang urges companies to ask better questions. Understanding what challenges matter to stakeholders helps ensure that any AI deployment addresses real-world needs. Regular check-ins and progress reviews help maintain alignment.

Rather than fear AI as a job threat, Huang encourages individuals to embrace it as a tool for growth. Staying curious and continually learning can ensure workers remain relevant in an evolving market.

She also highlights the strategic advantage of prioritising employee well-being. Companies that invest in mental health, work-life balance, and inclusion enjoy higher productivity and retention.

With younger workers placing a premium on wellness and values, businesses that foster a caring culture will attract top talent and stay competitive. Ultimately, Huang sees AI not as a replacement for people, but as a catalyst for more human-centric, data-informed workplaces.

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