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Jon Keegan

More details emerge of rocky start to Meta Superintelligence Labs

This week, Wired reported that things weren’t exactly humming along in Mark Zuckerberg’s AI all-star-packed Meta Superintelligence Labs, with some recent hires leaving the company after just weeks.

Today more details are emerging from the Financial Times, which reports that the team of newly minted multimillionaire AI pirates is struggling to adapt to life inside a legacy Big Tech company.

The new recruits, some of whom were reportedly offered nine-figure signing bonuses, appear to be flexing their newfound power.

One of the highest-profile recruits, ChatGPT cocreator Shengjia Zhao, reportedly threatened to return to OpenAI just days after joining Meta and had even started filling out paperwork at his old employer before Meta appeased him with the new title of “chief AI scientist.”

Avi Verma, one of the recent hires who left, didn’t show for his first full day of work after going through Meta onboarding, according to the report.

Meta told the FT that “some attrition is normal for any organization of this size. Most of these employees had been with the company for years, and we wish them the best.”

Today more details are emerging from the Financial Times, which reports that the team of newly minted multimillionaire AI pirates is struggling to adapt to life inside a legacy Big Tech company.

The new recruits, some of whom were reportedly offered nine-figure signing bonuses, appear to be flexing their newfound power.

One of the highest-profile recruits, ChatGPT cocreator Shengjia Zhao, reportedly threatened to return to OpenAI just days after joining Meta and had even started filling out paperwork at his old employer before Meta appeased him with the new title of “chief AI scientist.”

Avi Verma, one of the recent hires who left, didn’t show for his first full day of work after going through Meta onboarding, according to the report.

Meta told the FT that “some attrition is normal for any organization of this size. Most of these employees had been with the company for years, and we wish them the best.”

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EPA: xAI’s Colossus data center illegally used gas turbines without permits

The Environmental Protection Agency has ruled that xAI violated the law when it used dozens of portable gas generators for its Colossus 1 data center without air quality permits.

When xAI set out to build Colossus 1 in Memphis, Tennessee, CEO Elon Musk wanted to move with unprecedented speed, avoiding all of the red tape that could slow such a big project down.

To power the 1-gigawatt data center, Musk took advantage of a local loophole that allowed portable gas generators to be used without any permits, as long as they did not spend more than 364 days in the same spot. That allowed xAI to bring in dozens of truck-sized gas generators to quickly supply the massive amount of power the data center needed to train xAI’s Grok model.

The new EPA rule says the use of such portable generators falls under federal regulation, and the company did need air quality permits to operate the turbines. xAI is also using dozens of such generators to power its Colossus 2 data center just over the border in Alabama.

To power the 1-gigawatt data center, Musk took advantage of a local loophole that allowed portable gas generators to be used without any permits, as long as they did not spend more than 364 days in the same spot. That allowed xAI to bring in dozens of truck-sized gas generators to quickly supply the massive amount of power the data center needed to train xAI’s Grok model.

The new EPA rule says the use of such portable generators falls under federal regulation, and the company did need air quality permits to operate the turbines. xAI is also using dozens of such generators to power its Colossus 2 data center just over the border in Alabama.

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Trump to push Big Tech to fund new power plants as AI drives up electricity costs

President Donald Trump is expected to announce a plan Friday morning that would require Big Tech companies to bid on 15-year contracts for new electricity generation capacity. The move would effectively force companies to help fund new power plants in the PJM region as soaring demand from AI data centers pushes up electricity costs across the US power grid.

Earlier this week, Trump called on tech giants to “pay their own way,” arguing that households and small businesses should not bear the cost of power infrastructure needed to support energy-hungry data centers.

Microsoft quickly responded, saying it would “pay utility rates that are high enough to cover our electricity costs,” along with committing to other changes aimed at easing pressure on the grid. Other major tech companies are expected to follow suit, though Wedbush Securities analyst Dan Ives warned the added costs could slow the pace of data center build-outs.

As we’ve noted, forcing tech companies to shoulder higher electricity costs is likely to hit some firms harder than others. Companies like Microsoft, Google, and Amazon can pass at least some of those costs on to customers by selling data center capacity downstream. Meta, in contrast, does not have a cloud business, meaning its AI ambitions lack a direct revenue stream to offset rising power costs.

So far tech stocks don’t appear to be affected much in premarket trading. However utility companies most levered to the AI boom certainly are, with Vistra, Constellation Energy, and Talen Energy deep in the red ahead of the open as analysts at Jefferies warn that these firms face risks from this plan.

Earlier this week, Trump called on tech giants to “pay their own way,” arguing that households and small businesses should not bear the cost of power infrastructure needed to support energy-hungry data centers.

Microsoft quickly responded, saying it would “pay utility rates that are high enough to cover our electricity costs,” along with committing to other changes aimed at easing pressure on the grid. Other major tech companies are expected to follow suit, though Wedbush Securities analyst Dan Ives warned the added costs could slow the pace of data center build-outs.

As we’ve noted, forcing tech companies to shoulder higher electricity costs is likely to hit some firms harder than others. Companies like Microsoft, Google, and Amazon can pass at least some of those costs on to customers by selling data center capacity downstream. Meta, in contrast, does not have a cloud business, meaning its AI ambitions lack a direct revenue stream to offset rising power costs.

So far tech stocks don’t appear to be affected much in premarket trading. However utility companies most levered to the AI boom certainly are, with Vistra, Constellation Energy, and Talen Energy deep in the red ahead of the open as analysts at Jefferies warn that these firms face risks from this plan.

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OpenAI working to build a US supply chain for its hardware plans, including robots

When OpenAI purchased Jony Ive’s I/O, it entered the hardware business. The company is currently ramping up to produce a mysterious AI-powered gadget.

But OpenAI plans on making more than just consumer gadgets — it also plans on making data center hardware, and even robots.

Bloomberg reports that OpenAI has been on the hunt for US-based suppliers for silicon and motors for robotics, as well as cooling systems for data centers.

AI companies are looking toward robots as a logical next step for finding applications for their models.

OpenAI told Bloomberg that US companies building the AI brains of robots might have an edge against the Chinese hardware manufacturers that are currently making some impressive humanoid robots.

Bloomberg reports that OpenAI has been on the hunt for US-based suppliers for silicon and motors for robotics, as well as cooling systems for data centers.

AI companies are looking toward robots as a logical next step for finding applications for their models.

OpenAI told Bloomberg that US companies building the AI brains of robots might have an edge against the Chinese hardware manufacturers that are currently making some impressive humanoid robots.

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