The Rise of AI Reasoning Models Comes With a Big Energy Tradeoff

The rapid expansion of AI data centers is significantly impacting local communities, particularly through increased demands for power, water, and carbon emissions. These developments raise concerns about sustainability and the long-term effects on the environment and public health.

Eric Topol, author of Super Agers, advocates for the potential of artificial intelligence (AI) in diagnosing Alzheimer's disease through retinal analysis, suggesting that this technology could revolutionize medical diagnostics.

Researchers found that AI models, when asked to explain their solutions to Sudoku puzzles, often fabricated information, raising significant trust issues regarding AI reliability. This highlights a critical flaw in AI's ability to provide accurate and transparent reasoning.

Editor’s Note: Understanding how AI operates is crucial, especially as it becomes more integrated into our lives. If AI can't explain its decisions, it may lead to mistrust and challenges in its application.

A significant shift in the artificial intelligence stock trade is prompting investors in Asia to seek new equity opportunities, as technological advancements and concerns about market bubbles reshape the investment landscape. This trend reflects a growing interest in identifying potential winners in the AI sector amidst fluctuating market conditions.

Hewlett Packard Enterprise (HPE) has issued a disappointing sales outlook, projecting revenue between $9 billion and $9.4 billion and profit of 57 to 61 cents per share for the period ending in January, falling short of analysts' expectations of $9.88 billion in sales and 53 cents in profit. This news was highlighted by Patrick Moorhead on Bloomberg The Close.

Cloud-computing startup Fluidstack is reportedly in discussions to secure approximately $700 million in a funding round, which would elevate its valuation to around $7 billion, as per sources familiar with the matter.

Hewlett Packard Enterprise Co. shares fell in after-hours trading following a disappointing sales outlook for the current quarter, which did not meet high expectations for the AI server business. The company's forecast indicates a slowdown in server deals, raising concerns among investors.

OpenAI is facing intensified competition from Google, particularly with the rapid rise of Google's Gemini 3, which has gained 200 million users in just three months. In response, OpenAI CEO Sam Altman has declared a 'code red' for ChatGPT, emphasizing the urgent need for improvements to maintain its market position.