Alliant Energy has secured several power supply agreements with data centres in Iowa and Wisconsin, as confirmed during a recent post-earnings call. The rise in popularity of AI tools like OpenAI’s ChatGPT has spurred the demand for high-performance data centres, necessitating substantial electricity to process large volumes of data.
The company has been actively working to attract new customers in both states, successfully signing multiple deals with data centres. These agreements highlight Alliant Energy’s strategic efforts to expand its customer base amidst the growing data demands driven by advanced AI technologies.
Despite these new deals, Alliant Energy reported a decline in second-quarter profit, impacted by a settlement agreement related to its Interstate Power and Light unit’s retail electric rate review. This led to a pre-tax non-cash charge of $60 million in the second quarter.
The company’s quarterly adjusted profit for its utilities and corporate services segment fell by 13.8%, equating to 56 cents per share, compared to the previous year. Overall profit for the quarter ended June 30 was $87 million, down from $160 million a year earlier.
Taco Bell is expanding AI voice technology in its drive-thrus to hundreds of US locations by the end of this year, according to parent company Yum! Brands. Customers at these locations may soon interact with a computer instead of a human when placing their orders, a move aimed at freeing up employees for other tasks and improving sales.
The expansion follows Taco Bell’s successful testing of AI at 100 locations across 13 states, which reportedly led to greater order accuracy, happier employees, and shorter wait times. This contrasts McDonald’s, which recently abandoned similar AI technology after customer complaints about incorrect orders.
‘Yum! Brands’ chief innovation officer, Lawrence Kim, expressed confidence in their approach, which involved two years of testing and improvements. Kim assured that AI would not replace human jobs but enhance the work experience by allowing employees to focus on priority tasks. He also highlighted the technology’s potential for broader applications across other Yum! Brands chains, including Pizza Hut, KFC, and The Habit Burger Grill.
Meta has informed investors that its heavy investments in generative AI won’t yield revenue this year but are expected to pay off in the long run. Founder Mark Zuckerberg explained that Meta is preparing for future computing needs, particularly its next AI model, Llama 4, which will require significantly more computing power than its predecessor. Despite the high costs, with capital expenditures projected to reach up to $40 billion this year, Meta aims to position Llama 4 as the industry’s most advanced model by next year.
CFO Susan Li acknowledged during the earnings call that generative AI would not contribute to this year’s revenue. However, she emphasised that Meta’s AI infrastructure is designed to be flexible and multifunctional, capable of supporting various AI needs, including content ranking and recommendations. Meta’s existing AI tools have already enhanced user engagement on platforms like Facebook and Instagram, and new video recommendation tools have further boosted interaction with features like Facebook Reels.
Zuckerberg also discussed AI’s potential to transform Meta’s advertising business. He predicted that AI would eventually handle tasks like writing personalised ad copy and managing campaign objectives, simplifying the process for advertisers. This vision aligns with Meta’s broader strategy of leveraging AI to improve user experience and business outcomes.
Why does this matter?
Despite significant losses in its Reality Labs division, which focuses on metaverse-related technology, Meta reported solid financial performance. The company showed robust growth with quarterly revenues of $39 billion and net income of $13.5 billion. Additionally, Meta’s daily user base reached 3.2 billion, and its new social media app, Threads, is nearing 200 million monthly active users, contributing to investor confidence and a rise in Meta’s share price.
Meta’s AI ambitions have received a significant boost from WhatsApp’s 500 million users in India. During Meta’s second-quarter earnings call, CFO Susan Li highlighted that India has become the largest market for Meta AI usage, a remarkable achievement given the product’s recent launch. Users in India have generated billions of queries, showing high engagement and retention, particularly on WhatsApp.
Meta AI was initially launched in the US and expanded to India and over a dozen other countries with the upgraded Llama 3 model. Despite initial cultural challenges, such as generating images and jokes that were culturally insensitive, Meta has adjusted its algorithm to suit the Indian market better. Additionally, the AI now supports multiple languages beyond English, including Hindi and Spanish, broadening its accessibility.
CEO Mark Zuckerberg emphasised the increasing computational demands for future AI models, stating that training the upcoming Llama 4 model would require nearly ten times the computing power used for Llama 3 and so demonstrating Meta’s commitment to advancing its AI capabilities.
Apart from AI, Meta’s social networks also show promise. The Threads platform is nearing 200 million users, and Facebook usage among young adults in the US is rising, indicating continued growth and engagement across Meta’s suite of products.
India’s central bank proposed new guidelines on Wednesday to allow a broader range of authentication methods for digital transactions. The Reserve Bank of India (RBI) aims to enhance security by incorporating alternatives like fingerprints, passwords, and personal identification numbers (PINs) as additional factors of authentication.
Currently, text-based one-time passwords are the primary method used for authorising digital payments in India. The RBI’s draft circular suggests introducing other options such as passphrases, card hardware, or software tokens to verify users’ identities. This move is part of a broader effort to reduce fraud and cybercrime.
The proposal aligns with India’s broader technological initiatives, including the allocation of $1.24 billion for AI infrastructure and the introduction of biometric passports. Additionally, India has mandated USB-C ports for smartphones and tablets to curb e-waste, reflecting the country’s commitment to digital and tech security, as well as environmental sustainability.
Microsoft plans to increase its spending on AI infrastructure this fiscal year despite slower growth in its cloud business. This announcement led to a 4% drop in its share price after an initial 7% decline. The tech giant, along with others like Google, is investing heavily in data centres to leverage the AI boom, with Microsoft’s capital spending rising 77.6% to $19 billion in its fiscal fourth quarter, primarily for cloud and AI-related expenses.
Despite these investments, investors were disappointed with the slower growth of Microsoft’s Azure cloud service. The company forecasted a 28% to 29% growth for Azure in the upcoming quarter, slightly below market expectations, which followed a 29% increase in the previous quarter, but it also fell short of estimates, indicating a slowdown from earlier months.
CEO Satya Nadella highlighted that AI services are becoming a significant part of Azure’s revenue growth, with over 60,000 customers using Azure AI, a nearly 60% increase from the previous year. Microsoft has integrated AI across its products, including its search engine Bing and productivity tools like Word, driven by its substantial investment in OpenAI.
Microsoft’s total revenue rose 15% to $64.7 billion in the fourth quarter, exceeding analyst expectations. The company also grew in its personal computing business, benefiting from stabilising PC sales. However, revenue from its Intelligent Cloud unit, which includes Azure, missed analyst estimates, rising 19% to $28.5 billion.
Brazil has announced a 23 billion reais ($4.07 billion) investment plan for AI development. The initiative aims to foster sustainable and socially-oriented technologies within the nation, enhancing its technological autonomy and competitiveness in the global AI market.
The investment plan includes immediate impact initiatives targeting key sectors such as public health, agriculture, environment, business, and education. These initiatives focus on developing AI systems to streamline customer service and operational procedures.
A significant portion of the funds, nearly 14 billion reais, will be allocated to business innovation projects over the next four years. More than 5 billion reais will be invested in AI infrastructure and development, with the remaining resources dedicated to training, public service improvements, and AI regulation support.
President Luiz Inácio Lula da Silva emphasised the importance of Brazil developing its own AI technologies rather than relying on imports. He highlighted the potential of AI to generate income and employment within the country.
OpenAI has begun rolling out an advanced voice mode to a select group of ChatGPT Plus users, according to a post on X by the Microsoft-backed AI startup. Initially slated for a late June release, the launch was delayed to July to ensure the new feature met the company’s standards. This voice mode enables users to engage in real-time conversations with ChatGPT, including the ability to interrupt the AI while it is speaking, enhancing the realism of interactions.
The new audio capabilities address a common challenge for AI assistants, making conversations more fluid and responsive. In preparation for this release, OpenAI has been refining the model’s ability to detect and reject certain types of content while also enhancing the overall user experience and ensuring its infrastructure can support the new feature at scale.
We’re starting to roll out advanced Voice Mode to a small group of ChatGPT Plus users. Advanced Voice Mode offers more natural, real-time conversations, allows you to interrupt anytime, and senses and responds to your emotions. pic.twitter.com/64O94EhhXK
The following development is part of OpenAI’s broader strategy to introduce innovative generative AI products, as the company aims to stay ahead in the competitive AI market. Businesses are rapidly adopting AI technology, and OpenAI’s efforts to improve and expand its offerings are crucial to maintaining its leadership position in this fast-growing field.
At SIGGRAPH, a major computer graphics conference, Nvidia presented new real-world applications of generative AI. Chief executive officer Jensen Huang highlighted the company’s role in AI development, emphasising their Nvidia Inference Microservices (NIM) platform. Nvidia has always prioritised advanced computing through a software-led approach.
Recent announcements showcased improvements in generative AI and 3D content generation. AI services and models are now available to accelerate humanoid robot development. Researchers can use devices like the Apple Vision Pro to teach robots various tasks. Collaborations with Getty Images and Shutterstock aim to improve the accuracy of AI-generated images matching text prompts.
Engineers now benefit from advancements in industrial design, visualisation, and advertising tools. A demo video displayed lifelike 3D worlds generated from simple text prompts. Coca-Cola and marketing agency WPP are among the early adopters of Nvidia’s generative AI art tools.
The importance of these developments extends beyond product outputs. Nvidia integrates AI into their own processes, aiding software debugging and chip design. The impact on the market has been substantial, contributing significantly to the S&P 500’s market capitalisation gains. The company’s efforts continue to shape the future of AI in various industries.
Meta Platforms announced the launch of AI Studio, a tool enabling users to create and design personalised AI chatbots. The new feature allows Instagram creators to develop AI characters to manage direct messages and story replies, enhancing user interaction on the platform. These AI characters can be shared across Meta’s various platforms and are built using Meta’s Llama 3.1 model. This latest version of Meta’s AI model is available in multiple languages and competes with other advanced models like OpenAI’s.
Why does this matter?
Meta’s initiative follows OpenAI’s confidential project, code-named ‘Strawberry,’ aiming to showcase advanced reasoning capabilities. Introducing AI Studio marks Meta’s effort to offer cutting-edge AI tools to its vast user base, leveraging its Llama 3.1 model to provide powerful AI-driven features for content creators and users alike.
