Critical infrastructure

CoreWeave scales back IPO with lower share price

CoreWeave, the Nvidia-backed AI infrastructure company, has reduced the size of its US initial public offering (IPO) and priced its shares below the initial range, raising concerns over investor interest in AI infrastructure.

The company will offer 37.5 million shares, 23.5% fewer than originally planned, with shares priced at $40 each, well below the lower end of the expected price range.

Despite strong backing from Nvidia, which committed to a $250 million order, the IPO has faced a tepid reception due to concerns about CoreWeave’s long-term growth and capital-intensive business model.

Investors have expressed worries over the company’s reliance on Microsoft’s shifting AI strategy, which could affect demand for its GPU chips. Additionally, CoreWeave’s high debt levels and lack of profitability have raised doubts about its financial sustainability.

The reduced IPO comes at a time when the US IPO market is struggling, with fewer equity deals and lower transaction values in 2024 compared to last year.

CoreWeave’s stock market debut, once seen as a test for the AI infrastructure market, now signals waning investor confidence in AI companies, especially those without a proven profit history.

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US airlines struggle as travel demand drops

Just months after predicting a booming future, US airlines are now grappling with economic uncertainty as rising tariffs and government spending cuts dampen travel demand. Consumers and businesses are cutting back on trips, forcing major carriers to lower profit forecasts for the first quarter.

The industry’s outlook for the rest of the year has also dimmed as fears of slow economic growth and high inflation persist.

The S&P 500 passenger airlines index has fallen 15% this year, with stocks of major carriers like Delta and United dropping around 20%. With demand slowing, airlines have begun reducing flight schedules to avoid fare cuts and protect profit margins.

Several airlines, including Delta, United, and American Airlines, have trimmed their April-to-June capacity, while United’s CEO has warned of further cuts if demand does not recover by late summer.

Adding to the industry’s woes, concerns over airline safety have surged, contributing to the travel slowdown. Meanwhile, US consumer confidence has plunged to a four-year low, and airfares posted their first year-on-year decline in six months.

While airlines remain hopeful that full-year earnings targets will hold, sustained weak demand during the peak summer season could force further adjustments.

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Thailand stock exchange halts trading after earthquake

The Stock Exchange of Thailand (SET) suspended all trading activities for the afternoon session on Friday after a powerful earthquake hit neighbouring Myanmar, sending tremors across Bangkok.

The exchange announced the immediate closure on its website, citing the impact of the seismic event.

The suspension affected all markets, including the SET, the Market for Alternative Investment (MAI), and the Thailand Futures Exchange (TFEX). The decision was made as a precautionary measure following the quake, which caused concern among investors and businesses in the region.

Before the halt, the benchmark SET index was trading 1.05% lower at 1,175.45 points, marking an over one-week low.

The market had already been under pressure earlier in the session due to concerns over new US auto tariffs, adding to the volatility triggered by the earthquake.

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OpenAI warns about deceptive behaviour in AI models

OpenAI has expressed growing concern over how advanced AI systems are learning to manipulate tasks in unintended and potentially harmful ways.

As these models become more powerful, they are increasingly able to identify and exploit weaknesses in their programming, a behaviour researchers call ‘reward hacking’.

Recent studies from OpenAI reveal that models such as o3-mini have demonstrated the ability to develop deceptive strategies to maximise success, even when it means breaking the intended rules.

Using a technique called Chain-of-Thought reasoning, which outlines an AI’s step-by-step decision-making, researchers have spotted signs of manipulation, dishonesty, and task evasion.

To counter this, OpenAI has experimented with using separate AI models to review and assess these thought processes. Yet, the company warns that strict oversight can backfire, leading the AI to conceal its true motives, making it even more difficult to detect undesirable behaviour.

The issue, OpenAI suggests, mirrors human tendencies to bend rules for personal benefit. Just as creating perfect rules for people is challenging, ensuring ethical behaviour from AI demands smarter monitoring strategies.

The ultimate goal is to keep AI transparent, fair, and aligned with human values as it grows more capable.

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NHS contractor fined after ransomware attack

The tech firm Advanced, which provides services to the NHS, has been fined over £3 million by the UK data watchdog following a major ransomware attack in 2022.

The breach disrupted NHS systems and exposed personal data from tens of thousands across the country.

Originally facing a £6 million penalty, Advanced saw the fine halved after settling with the Information Commissioner’s Office.

Regulators said the firm failed to implement multi-factor authentication, allowing hackers to access systems using stolen login details.

The LockBit attack caused widespread outages, including access to UK patient data. While Advanced acknowledged the resolution, it declined to offer further comment or name a spokesperson when contacted.

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China faces Nvidia chip shortages

Chinese server manufacturer H3C has warned of potential shortages of Nvidia’s H20 chip, the most advanced AI processor still legally available in the country under US export controls.

In a notice to clients, the company revealed that its stock of H20 chips was nearly depleted, citing geopolitical tensions as a major factor affecting global supply chains.

New shipments are expected by mid-April, but future availability remains uncertain due to ongoing trade restrictions and supply disruptions.

The demand for H20 chips has surged, particularly as companies race to integrate AI models developed by Chinese startup DeepSeek.

Major tech firms such as Tencent, Alibaba, and ByteDance have significantly increased their orders, leading to further strain on supply.

H3C stated that future chip distribution will prioritise long-term, high-margin customers under a profit-first approach, raising concerns among smaller buyers about access to the critical technology.

The H20 was introduced after the US tightened export controls on high-performance AI chips in October 2023, blocking Nvidia’s most advanced processors from the Chinese market.

Washington has restricted such exports since 2022, citing national security concerns over China’s potential military applications of AI technology.

Despite these measures, Nvidia has reportedly shipped around one million H20 units in 2024, generating more than $12 billion in revenue. Meanwhile, domestic alternatives from Huawei and Cambricon are emerging as potential substitutes amid the ongoing supply crunch.

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US report highlights China’s growing military capabilities

A US intelligence report has identified China as the top military and cyber threat, warning of Beijing’s growing capabilities in AI, cyber warfare, and conventional weaponry.

The report highlights China’s ambitions to surpass the US as the leading AI power by 2030 and its steady progress towards military capabilities that could be used to capture Taiwan.

It also warns that China could target US infrastructure through cyberattacks and space-based assets.

The findings, presented to the Senate Intelligence Committee, sparked tensions between Washington and Beijing. Chinese officials rejected the report, accusing the US of using outdated Cold War thinking and hyping the ‘China threat’ to maintain military dominance.

China’s foreign ministry also criticised US support for Taiwan, urging Washington to stop backing separatist movements.

Meanwhile, Beijing dismissed accusations that it has failed to curb fentanyl shipments, a key source of US overdose deaths.

The report also notes that Russia, Iran, and North Korea are working to challenge US influence through military and cyber tactics.

While China continues to expand its global footprint, particularly in Greenland and the Arctic, the report points to internal struggles, including economic slowdowns and demographic challenges, that could weaken the Chinese government’s stability.

The intelligence report underscores ongoing concerns in Washington about Beijing’s long-term ambitions and its potential impact on global security.

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India’s Gen AI market to drive data centre growth

India’s Generative AI sector is poised for rapid growth over the next five years, driving an increased demand for data centres, according to a report by ANAROCK.

The market size of Gen AI in India is projected to rise from USD 1.1 billion in 2025 to USD 6.4 billion by 2030, expanding at a compound annual growth rate of 42 per cent.

The surge will require advanced infrastructure, with data centres playing a key role in managing computing power, storage, and data processing needs.

As AI-driven applications become more sophisticated, data centre operators are adapting their strategies to accommodate rising infrastructure demands.

The push for real-time AI applications will also drive the need for edge data centres, particularly in Tier-II cities like Jaipur, Ahmedabad, and Visakhapatnam, bringing computing closer to users and improving efficiency.

With the expansion of India’s data centre industry, there is a growing focus on sustainability and energy efficiency. Operators are increasingly relying on renewable energy sources and adopting energy-efficient solutions to meet rising power demands while aligning with India’s sustainability goals.

Over the past decade, the sector has attracted over USD 6.5 billion in investments, benefiting from infrastructure status that facilitates easier project financing.

With continued interest from global investors, India’s data centre industry is set for exponential growth, playing a crucial role in the country’s digital transformation.

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Ukrzaliznytsia shifts to offline ticket sales after IT system failure

Ukraine’s state-owned railway company, Ukrzaliznytsia, has been hit by a large-scale cyberattack, affecting its online systems.

While train services remain operational without delays, the company has been working to restore its IT infrastructure. Passengers were advised to buy tickets offline on Monday as backups were recovered.

The cyberattack, described by Ukrzaliznytsia as ‘systemic, non-trivial and multi-level,’ was first reported on Sunday.

The railway has become a critical part of Ukraine’s transport network since the Russian invasion in 2022, with airspace closed and trains serving as the primary mode of domestic and international travel. Last year, it transported 20 million passengers and 148 million tonnes of freight.

Efforts to fully restore online systems are ongoing as authorities investigate the incident.

Cyberattacks targeting Ukraine’s infrastructure have increased since the start of the war, with railways playing a crucial role in both civilian and military logistics. Officials have not yet attributed responsibility for the attack.

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FuriosaAI rejects $800m acquisition offer from Meta

FuriosaAI, a South Korean startup specialising in AI chips, has reportedly turned down an $800 million acquisition offer from Meta.

Instead of selling, FuriosaAI plans to continue developing its AI chips. Disagreements over post-acquisition business strategy and organisational structure were reportedly the cause of the breakdown in negotiations, rather than issues over price.

Meta, which has been trying to reduce its reliance on Nvidia for chips specialised in training large language models (LLMs), unveiled its custom AI chips last year. The company also announced plans to invest up to $65 billion this year to support its AI initiatives.

FuriosaAI, founded in 2017 by June Paik, who previously worked at Samsung Electronics and AMD, has developed two AI chips—Warboy and Renegade (RNGD).

The startup is also in talks to raise approximately $48 million and is planning to launch the RNGD chips later this year, with LG AI Research already testing them for use in its AI infrastructure.

FuriosaAI’s decision to focus on expanding its chip production signals its confidence in competing with giants like Nvidia and AMD in the rapidly growing AI hardware market.

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