Constellation Energy remains committed to establishing data centers at its US power plants despite a recent regulatory challenge. Last week, the Federal Energy Regulatory Commission (FERC) blocked a deal to expand power capacity for an Amazon data centre connected to a Talen Energy nuclear facility, a decision seen as discouraging similar co-location projects. Despite this, Constellation aims to advance its vision, particularly for AI-driven facilities seeking quick, large-scale power access.
Company CEO Joseph Dominguez expressed that Constellation will continue pursuing commercial co-location strategies permitted within existing regulations while seeking further guidance from FERC. Dominguez suggested future data centers could draw directly from nuclear power and, in times of grid emergencies, redirect electricity back to the network, highlighting potential safeguards for grid reliability and regional power stability.
FERC’s decision arose partly from concerns raised by other energy providers, who argued that the Talen-Amazon arrangement risked inflating energy prices for regular consumers and straining the grid. Specifically, Talen’s proposed data center campus could have supplied 960 megawatts—enough for a city the size of Philadelphia—but FERC limited it to 300 megawatts, citing grid impact concerns.
Constellation, largest nuclear operator in the US, had supported Talen in the regulatory process, underscoring the potential for data centers to meet surging digital demand. Although Constellation’s stock dropped following FERC’s ruling, the company is exploring alternative pathways with stakeholders to move its data center plans forward efficiently.
Tenstorrent, a Silicon Valley startup founded by veterans from Apple and Intel, has secured a deal with the Japanese government to train up to 200 Japanese chip designers over the next five years. This partnership, announced on Tuesday, includes a $50 million investment shared between Tenstorrent and Japan’s Leading-edge Semiconductor Technology Centre. It is part of Japan‘s initiative to revitalise its semiconductor industry, which has seen a significant decline since its dominance in the 1980s.
Central to this revitalisation effort is Rapidus, a government-backed contract chipmaker aiming to begin mass production of advanced semiconductors by 2027. To support Rapidus’s goals, the collaboration with Tenstorrent focuses on creating future customers by educating Japanese engineers in the US about chip design. Starting in April 2025, these engineers will work closely with Tenstorrent’s experienced team, including industry veterans who have worked on Apple chips.
The agreement allows Tenstorrent to retain the chip designs created during the training, which will utilise RISC-V, an open chip design architecture. Upon returning to Japan, the engineers will be equipped to leverage their new knowledge to develop their own RISC-V designs, further contributing to the growth of Japan’s semiconductor capabilities. Tenstorrent’s Chief Customer Officer, David Bennett, emphasised that Japan’s proactive investments reflect its commitment to taking control of its technological future.
OpenAI, led by Sam Altman, is exploring a move to transition from a non-profit to a for-profit company, according to Bloomberg News. Early discussions with the California attorney general’s office aim to alter OpenAI’s corporate structure, signalling a significant shift in the governance of the AI research pioneer. Originally founded in 2015 as a non-profit, OpenAI’s new direction could open the door to increased investment opportunities.
The potential change in status would mark a strategic shift for the company, which developed the popular AI tool ChatGPT. OpenAI’s connection with Microsoft, which invested heavily in the company, has been a key factor in its growth. In September, reports emerged that OpenAI was already contemplating restructuring as a for-profit benefit corporation, with a new structure aimed at enhancing business opportunities while keeping its non-profit arm involved.
The non-profit branch of OpenAI would continue to exist and hold a minority stake, allowing the organisation to maintain some of its founding mission. This balance could appeal to investors while retaining a foothold in its original purpose of ethical AI development. OpenAI’s funding has also surged recently, including a $6.6 billion funding round, potentially valuing the firm at $157 billion.
With substantial backing and increased investor interest, OpenAI’s shift could cement its position as one of the world’s most valuable private companies. The move reflects broader trends in AI, where companies are aligning profit goals with technological innovation to remain competitive in a rapidly evolving market.
Kioxia, backed by Bain Capital, announced on Tuesday that it anticipates a 2.7-fold increase in demand for flash memory over the next five years, fueled by the surge in AI. After facing significant challenges in the memory chip market, the company is preparing to expand production capacity at its new facility in Kitakami, located in Iwate prefecture, north of Tokyo. Although production at this facility was initially scheduled to start last year, it has been postponed until autumn 2025.
The chipmaker, formerly known as Toshiba Memory, has experienced significant changes, including its separation from the troubled Toshiba Corporation under Bain’s leadership. Kioxia continues to manufacture chips in Yokkaichi, Mie prefecture and recently commenced sample shipments of its latest NAND flash memory. The growing demand for AI is driving investments in server technology and is expected to rejuvenate interest in smartphones and PCs.
Executive Vice President Tomoharu Watanabe stated that the new Kitakami factory, set to come online next autumn, will provide the necessary capacity to meet increasing demand. In February, the Japanese government pledged up to $1.64 billion in subsidies to Kioxia and partner Western Digital to support capacity expansion at both the Yokkaichi and Kitakami facilities. Meanwhile, Bain Capital has cancelled plans for an initial public offering for Kioxia after investors expressed concerns about its valuation. Kioxia’s evolution is being closely watched as Japan aims to revitalise its once-dominant semiconductor industry.
SpaceX, the aerospace company founded by Elon Musk, is urging its Taiwanese suppliers to relocate manufacturing operations off the island due to rising geopolitical tensions between China and Taiwan. This shift, aimed at reducing risk amid China’s increased military drills around Taiwan, has led some suppliers to transfer parts of their production to countries such as Vietnam and Thailand. Notable Taiwanese companies, including Chin-Poon Industrial and Wistron NeWeb Corporation (WNC), confirmed that SpaceX requested they move production, citing geopolitical concerns.
In response, WNC has already started producing network equipment for SpaceX’s Starlink project in Vietnam, with plans to double its workforce there. Similarly, Universal Microwave Technology has expanded in Southeast Asia, investing in new factories in Vietnam and Thailand, while Shenmao Technology is establishing a $5 million unit in Vietnam. These shifts align with Taiwanese tech companies’ broader efforts to diversify their operations outside Taiwan, aiming to insulate their supply chains from potential disruptions.
SpaceX’s approach underscores Musk’s complicated relationship with Taiwan, heightened after his comments last year calling Taiwan an “integral part” of China, which sparked backlash from the Taiwanese government. The company’s interest in building a manufacturing hub in Vietnam reflects an increasing trend of high-tech industries seeking stability amid geopolitical tensions, with Southeast Asia emerging as a crucial alternative for production.
Apple is set to integrate OpenAI’s ChatGPT with Siri and other iOS features, rolling out in December with iOS 18.2. Beta testers of iOS 18.2 have discovered an option in the Settings app allowing users to subscribe directly to ChatGPT Plus, OpenAI’s premium plan, for $20 a month. This move offers Apple users a streamlined way to access ChatGPT‘s advanced features, which include more capable AI models and additional voice and image options.
Free users of ChatGPT will still face some limitations, including restricted access to OpenAI‘s most advanced models and fewer image generations per day. However, OpenAI could see a surge in paid subscriptions from the partnership as Apple’s exposure could drive substantial user interest in ChatGPT Plus.
The specifics of the financial terms between Apple and OpenAI are unclear. Apple isn’t reportedly paying OpenAI directly, relying instead on enhanced exposure, though questions remain about any potential revenue sharing. Apple’s broader AI plans indicate it will also include models from other developers in future updates, possibly incorporating Google’s Gemini.
In the background, OpenAI is working to secure additional funding amidst a period of rapid change, including the departure of key executives and a recent $6.6 billion funding round, which Apple reportedly declined to join following unexpected shifts at OpenAI.
MIT has unveiled a new method for training robots that scales up data in a way similar to large language models (LLMs), marking a shift from the narrow, task-focused data sets traditionally used in robotics. Imitation learning, where robots learn by observing humans, often struggles with new variables like lighting changes or unexpected obstacles. By adopting a vast data approach similar to that used in models like GPT-4, MIT’s researchers aim to help robots adapt more flexibly in varied environments.
The team developed a new architecture called Heterogeneous Pretrained Transformers (HPT), which combines information from multiple sensors and diverse settings to build robust training models. Larger transformers yielded improved outcomes, aligning with trends seen in LLMs, as HPT integrates data from multiple sources for more adaptable robotic responses.
Ultimately, researchers aspire to create a universal ‘robot brain’ that can be downloaded and used immediately without extra training. While still in early stages, the project has support from Toyota Research Institute, which recently partnered with Boston Dynamics to integrate learning research with advanced robotic hardware.
Apple has announced a substantial investment of up to $1.5B in satellite provider Globalstar to expand iPhone communication services, particularly in areas with limited network access. This new agreement follows Apple’s initial partnership with Globalstar in 2022, which enabled emergency messaging capabilities in remote locations. Under the deal, Apple will invest $1.1B in cash, secure a 20% stake in Globalstar for an additional $400M, and gain access to 85% of Globalstar’s network capacity.
Shares of Globalstar surged by over 30% following the news, while Apple’s stock dipped slightly as it forecasts modest revenue growth for the coming quarter. Globalstar indicated that a portion of Apple’s funding will help reduce its debt, further strengthening its infrastructure.
The collaboration between Apple and Globalstar highlights a growing trend of partnerships between tech and satellite companies aiming to provide seamless satellite-based connectivity to underserved regions. The deal is expected to finalise on Tuesday, paving the way for expanded services on future iPhone models.
At TechCrunch Disrupt 2024, data management leaders advised AI-driven businesses to focus on incremental, practical applications rather than expansive, large-scale projects. Chet Kapoor, CEO of DataStax, stressed that AI’s effectiveness relies heavily on having robust, unstructured data at scale, but warned companies against rushing into overly ambitious initiatives. The discussion featured insights from Kapoor, Vanessa Larco of NEA, and Fivetran’s CEO George Fraser, all of whom advocated a targeted approach to data application in generative AI.
Rather than applying AI across all company functions immediately, Larco suggested that firms begin with well-defined objectives. Identifying relevant data is key, she said, and applying it selectively can avoid the pitfalls of costly errors. Companies looking to capitalise on AI should ‘work backwards’, focusing first on the issue to be solved and gathering the specific data required, Larco added.
Fraser underscored the importance of addressing current needs before planning for broader scaling. Many innovation costs, he pointed out, stem from projects that fail rather than those that succeed. His advice: ‘Only solve the problems you have today’.
Kapoor likened today’s generative AI era to the early days of mobile apps, emphasising that most AI projects are currently in exploratory stages. He believes next year will see transformational AI applications begin to shift company trajectories.
The Federal Energy Regulatory Commission (FERC) is examining the rapid growth of energy-intensive data centers being built next to US power plants. Known as co-location, this trend is driven by the tech sector’s need for large amounts of power for AI and other data-heavy operations. Co-locating data centers near power plants offers companies quicker access to electricity, bypassing the longer process of connecting to the broader grid.
However, regulators and industry experts are concerned about the impact on costs and reliability for other electricity consumers. If data centers use power plants that typically supply the public grid, there are questions about how such facilities will handle power disruptions and whether they will lean on the grid as backup. This could mean higher electricity bills for consumers who fund grid infrastructure, a point raised by FERC Commissioner Mark Christie.
The regulatory scrutiny comes as companies like Amazon and Google look to establish co-located data centers to meet growing energy needs. A recent arrangement in Pennsylvania, where Amazon bought a data center linked to a nuclear plant, has stirred debate among electric utilities over infrastructure costs and reliability. FERC’s review could lead to new guidelines clarifying financial responsibilities and operational rules for these partnerships.
