Category: AI Related

Mitsui O.S.K. Lines (MOL) and Karpowership, through its energy transition initiative Kinetics, have signed a Memorandum of Understanding (MOU) to jointly develop the world’s first integrated next-generation floating data center platform. This collaboration was announced on July 7, 2025.

Let’s have a look the key details of the partnership include:

• The floating data center will be hosted on a retrofitted vessel, designed to provide scalable, mobile, and rapidly deployable digital infrastructure.

• It will be powered by uninterrupted, dedicated energy from various flexible sources, including Karpowership’s Powerships, land-based grids, onshore solar farms, offshore wind, or other energy generation solutions depending on location and client needs.

• Karpowership brings over 20 years of experience and more than 10,000 MW of installed floating power capacity across 19 countries.

• MOL contributes its extensive maritime and offshore logistics expertise to the project.

• The floating platform aims to overcome challenges faced by traditional land-based data centers such as power constraints, land scarcity, and permitting delays.

This initiative builds on a prior collaboration between MOL and Karpowership from 2019, where they cooperated on the LNG-to-Powership business under the brand “KARMOL,” focusing on providing LNG-fueled floating power solutions with environmental benefits and cost efficiency.

The latest MOU marks a significant step toward combining maritime logistics and floating power expertise to meet the surging global demand for digital infrastructure through innovative floating data centers.

Groq has partnered with Equinix to launch its first European data centre in Helsinki, Finland, marking a significant expansion of Groq’s AI inference infrastructure into Europe. This new facility aims to provide low-latency, scalable, and cost-efficient AI inference capacity closer to European users, enabling faster response times and stronger data governance.

Let’s have a look Key details of this collaboration include:

• Location: Equinix data centre in Helsinki, Finland, chosen for its sustainable energy policies, free cooling, and reliable power grid, making it ideal for hosting AI infrastructure.
• Purpose: To support AI inference workloads—where trained machine learning models draw conclusions from new data—by delivering high capacity and efficiency at scale.
• Customer benefits: Equinix Fabric customers can deploy inference workloads directly to GroqCloud, gaining access to inference capacity across the US and EMEA regions via public, private, or sovereign infrastructure options.
• Strategic significance: This European footprint builds on Groq and Equinix’s existing collaboration in Dallas, Texas, strengthening their global AI infrastructure network and enabling customers to innovate faster in AI applications.
• Statements: Jonathan Ross, Groq CEO, emphasized the growing demand for AI inference and the need for scalable, efficient infrastructure. Regina Donato Dahlström, Managing Director for the Nordics at Equinix, highlighted Finland’s advantages and the synergy between Groq’s technology and Equinix’s infrastructure.

Groq’s investment in Equinix’s Helsinki data centre establishes a strategic European hub for AI inference, enhancing performance and accessibility for AI workloads across Europe and beyond.

CoreWeave and Core Scientific are closely linked players in the high-performance computing (HPC) and AI cloud infrastructure space, with a significant recent development being CoreWeave’s planned acquisition of Core Scientific.

Let’s have a look Relationship and Business Focus:

• Core Scientific is a leading provider of digital infrastructure, specializing in high-density colocation services and digital asset mining. It operates multiple purpose-built data centers across several U.S. states (Alabama, Georgia, Kentucky, North Carolina, North Dakota, Texas, Oklahoma) and is pivoting from Bitcoin mining toward supporting AI and HPC workloads through colocation services. It has contracts with CoreWeave to host GPUs and deliver AI-related compute capacity.

• CoreWeave  is a cloud infrastructure provider focused on AI workloads, leveraging GPU-accelerated computing. It has been a major customer of Core Scientific, leasing significant data center capacity to run AI cloud services.

Key Recent Development: Acquisition Deal

• On July 7, 2025, CoreWeave announced its intention to acquire Core Scientific in an all-stock deal valued at approximately $9 billion. This deal is expected to close in Q4 2025, subject to regulatory and shareholder approval.

• The acquisition will allow CoreWeave to gain direct control over Core Scientific’s data center infrastructure, including about 1 gigawatt of gross power capacity with an additional gigawatt planned for expansion. This will eliminate CoreWeave’s need to pay rent to Core Scientific on several data center sites, improving operational efficiency and saving an estimated $500 million annually.

• The combined entity will have enhanced scale and capabilities to serve the growing AI and HPC market, with Core Scientific’s 12-year contracts with CoreWeave representing over $10 billion in recurring revenue.

Strategic Shift and Financials

• Core Scientific has been shifting its business model from Bitcoin mining, which has become less profitable, to high-density colocation services tailored for AI workloads. It plans to deliver 250 megawatts of billable capacity to CoreWeave by the end of 2025.

• Despite a revenue decline in early 2025 (Q1 revenue $79.5 million, down from prior year), Core Scientific reported a net income of $580.7 million due to financial restructuring and strategic moves.

• The partnership and upcoming merger reflect a broader industry trend of data center providers focusing on AI infrastructure, where demand for GPU-accelerated computing is rapidly growing.

This acquisition positions CoreWeave to become a major integrated player in the AI infrastructure market by combining Core Scientific’s extensive data center assets with its own AI cloud capabilities.

The conflict between Google and the European Independent Publishers Alliance centers on Google’s use of European journalistic content in its search services, particularly its AI-generated summaries called AI Overviews, and the fair remuneration of publishers under EU copyright laws.

Let’s have a look Key points of the dispute:

• Publishers’ complaint: The Independent Publishers Alliance accuses Google of abusing its dominant position in online search by misappropriating content for its AI Overviews, which appear prominently above search results. They argue this practice harms publishers by reducing traffic, readership, and revenue, effectively disadvantaging the original journalistic works.

• Google’s unilateral actions: Publishers reject Google’s unilateral “experiment” in eight EU countries where Google removed press content from its services without consultation, affecting about 2 million Europeans. Google assessed the value of European press content using opaque criteria, which publishers say undermines their legitimate claims for fair payment.

• Regulatory context: The European Union’s Digital Markets Act (DMA) and Copyright Directive seek to ensure fair remuneration for press publishers. The French Competition Authority intervened to prevent Google from delisting publishers during negotiations, safeguarding fair bargaining.

• Google’s response and deals: Google has signed licensing agreements with over 2,600 European publications across 16 countries, including major deals in Germany and France, and is rolling out tools to facilitate contracts with smaller publishers. However, Google has also withdrawn from some deals, such as a multi-year agreement with Australian publishers, complicating relations.

• Recent legal action: On July 4, 2025, the Independent Publishers Alliance filed an antitrust complaint with the European Commission, seeking interim measures to prevent further harm from Google’s AI Overviews, accusing Google of monopolistic abuse in search.

This ongoing conflict highlights the tension between digital platforms’ AI-driven content aggregation and the rights and revenues of traditional news publishers in Europe, with regulatory bodies increasingly involved to ensure fair competition and remuneration.

Ruoming Pang, Apple’s top AI executive responsible for leading the company’s foundation models team, has left Apple to join Meta Platforms’ new Superintelligence Labs division. This move was reported by Bloomberg and confirmed by multiple sources familiar with the situation. Pang was managing a team of about 100 employees working on Apple’s large language models, which power features like Genmoji, email summaries, and priority notifications on Apple devices.

At Meta, Pang is expected to take a key role in the newly formed Superintelligence team, which aims to accelerate advanced AI development. He reportedly received a compensation package worth several million dollars annually, reflecting Meta’s aggressive strategy to attract elite AI talent amid fierce competition with other tech giants.

This departure is seen as a significant setback for Apple, whose AI efforts have lagged behind competitors like Meta, OpenAI, and Anthropic. Apple’s AI models have not been as capable, and the company has even considered integrating third-party AI models for its upcoming Siri upgrade. Pang’s exit may be the first of several from Apple’s AI division, which is currently undergoing internal restructuring and facing morale challenges.

Meta’s AI division, led by Alexandr Wang (former CEO of Scale AI), has been actively recruiting top talent from Apple, OpenAI, Anthropic, and other AI leaders. This hiring spree, including Pang’s recruitment, underscores Meta’s ambition to lead in next-generation AI technologies, including general and superintelligence initiatives.

This move highlights the intensifying competition between Apple and Meta in the AI space, with Meta making bold investments and hires to gain an edge.

At Huawei’s Developer Conference 2025 in Dongguan, China, Huawei unveiled its next-generation Huawei Cloud AI Service alongside the upgraded Pangu 5.5 models, marking a significant step in reshaping industries with AI cloud services. The new AI cloud service is powered by the CloudMatrix 384 supernodes, the industry’s first to interconnect 384 proprietary NPUs and 192 Kunpeng CPUs through a high-speed MatrixLink network, delivering a near fourfold increase in inference throughput compared to previous architectures. This infrastructure supports flexible resource allocation for both AI model training and inference, enhancing efficiency and utilization by over 50%.

The upgraded Pangu 5.5 models bring substantial improvements across five key AI capabilities: natural language processing (NLP), computer vision (CV), multi-modal understanding, prediction, and scientific computing. These enhancements enable more powerful and versatile AI applications tailored to diverse industry needs1.

Huawei Cloud’s AI infrastructure supports over 1,300 customers, including major organizations like Sina and the Chinese Academy of Sciences, accelerating intelligent upgrades across sectors. The AI Cloud Service’s advanced compute power and upgraded models enable industries to implement AI-driven transformations more effectively.

Additionally, Huawei continues to advance its AI ecosystem with initiatives such as the APAC AI Pioneer Plan, fostering innovation and collaboration in AI technology development across the Asia Pacific region5. Huawei’s commitment to AI-native cloud solutions is further reflected in its broader portfolio, including AI Core Networks, AI-ready data storage, and comprehensive cloud security solutions introduced at events like MWC 2025.

Huawei is reshaping industries by combining cutting-edge AI cloud infrastructure with upgraded Pangu models, offering powerful, flexible, and scalable AI services that drive digital transformation across multiple sectors globally.

As consumers shift from traditional search engines to conversational AI, a new wave of startups is building tools that help businesses sell goods and services through chatbots and AI assistants. These companies are betting that as users increasingly use chatbots for product discovery and recommendations, the nature of online search—and the platforms that dominate it—will fundamentally change.

Let’s look at why Startups See Opportunity:
Changing Consumer Behavior: More shoppers are turning to AI chatbots for product recommendations, customer service, and even direct purchases, bypassing the need for a traditional Google search.

Conversational Commerce: AI chatbots can handle natural language queries, provide instant answers, and guide users through personalized shopping experiences—capabilities that traditional search bars lack.

Business Value: Companies using chatbots report increases in engagement, conversion rates, and customer satisfaction. Many are seeing measurable improvements in sales and cost savings.

What about How Chatbots Are Transforming E-Commerce?
Conversational Search: Shoppers can ask for recommendations in natural language (e.g., “What are the best running shoes for trail running?”), and chatbots respond with curated suggestions, product details, and even checkout options.

Personalization: AI chatbots learn from user interactions, offering tailored promotions, reminders, and follow-ups that drive repeat business.

24/7 Support: Bots provide instant, round-the-clock assistance, improving customer satisfaction and reducing operational costs.

Data Collection: Chatbots gather valuable insights on customer preferences and behavior, informing marketing and SEO strategies.

Business Impact and Market Trends:
Adoption Rates: Nearly half of all e-commerce businesses have adopted AI-generated product descriptions, and over a quarter use AI chatbots for sales or support. Among these, most report a 20% increase in leads or sales, and many see reduced customer support costs.

SEO and Engagement: AI chatbots boost engagement metrics, which in turn can positively affect a site’s search ranking—even as the definition of “search” evolves.

Competitive Edge: Early adopters of conversational commerce tools are positioned to capture traffic and sales that might otherwise go to traditional search engines.

For the Bigger Picture; Startups in this space are not just building better chatbots—they are reimagining how consumers discover, evaluate, and buy products online. As AI-driven conversations become the new entry point for shopping journeys, these companies are poised to profit from the shift away from Google’s search-centric model toward a more interactive, personalized, and commerce-focused future

“The Illusion of Thinking: A Comment on Shojaee et al. (2025)” critically examines a recent study that claimed Large Reasoning Models (LRMs) suffer from an “accuracy collapse” when solving planning puzzles beyond certain complexity thresholds. The authors of this response argue that these findings are not indicative of fundamental reasoning limitations in AI models but rather stem from flaws in experimental design and evaluation methodology.

One key issue identified is the Tower of Hanoi benchmark used by Shojaee et al., where the required output length exceeds model token limits at higher complexity levels. The models often explicitly acknowledge their inability to list all steps due to practical constraints, yet they still understand the underlying solution pattern. This behavior was misinterpreted as a failure in reasoning, rather than a conscious decision to truncate output. Automated evaluation systems failed to distinguish between actual reasoning failures and output limitations, leading to incorrect conclusions about model capabilities.

A second critical flaw arises in the River Crossing puzzle experiments. Some instances presented were mathematically unsolvable due to insufficient boat capacity, yet models were penalized for failing to produce a solution. This reflects a deeper problem with programmatic evaluations—scoring models based on impossible tasks can lead to misleading assessments of their abilities.

Additionally, the paper highlights how the token budget imposed by large language models significantly influences apparent performance limits. When problem size increases, the number of tokens needed to fully enumerate each step grows quadratically. Once this limit is reached, models appear to “collapse” in accuracy—not because they lack reasoning ability, but because they cannot output longer sequences.

To test whether this was truly a reasoning limitation, the authors conducted preliminary experiments using an alternative representation: asking models to generate a Lua function that could solve the Tower of Hanoi puzzle instead of listing every move. Under this format, multiple models—including Claude-3.7-Sonnet, Claude Opus 4, OpenAI o3, and Google Gemini 2.5—demonstrated high accuracy on problems previously deemed unsolvable, using fewer than 5,000 tokens.

The paper also critiques the use of solution length as a complexity metric , arguing that it conflates mechanical execution with true problem-solving difficulty. For example, while Tower of Hanoi requires many moves, its per-step logic is trivial. In contrast, River Crossing involves complex constraint satisfaction even with few moves, making it a more cognitively demanding task.

In conclusion, the authors assert that Shojaee et al.’s results reflect engineering and evaluation artifacts rather than intrinsic reasoning failures in LRMs. They call for future research to:

1. Distinguish clearly between reasoning capability and output constraints.
2. Ensure puzzle solvability before evaluating model performance.
3. Use complexity metrics that align with computational difficulty, not just solution length.
4. Explore diverse solution representations to better assess algorithmic understanding.

Ultimately, the paper challenges the narrative that current models lack deep reasoning abilities, emphasizing that the real challenge may lie in designing evaluations that accurately measure what models truly understand.

Apple has explored building a cloud service platform to rival Amazon Web Services (AWS), Microsoft Azure, and Google Cloud, targeting developers who create apps for iPhone and Mac. This initiative, internally known as Project ACDC (Apple Chips in Data Centers), focuses on leveraging Apple’s proprietary M-series silicon chips to power cloud infrastructure, aiming to offer a more efficient and cost-effective alternative for AI workloads and other compute-intensive tasks.

Let’s look at key points about this development include:

• Project ACDC and Private Cloud Compute: Apple has already tested its M-series chips in data centers for internal services such as Siri, Photos, Apple Music, and Apple Wallet transactions, achieving both performance improvements and cost savings. The company launched “Private Cloud Compute” last year to handle complex AI tasks that cannot be processed on-device, showcasing the potential of its silicon in cloud environments.

• Strategic Motivation: Apple currently spends around $7 billion annually on cloud services from Amazon and Google, mainly for AI training. Building its own cloud infrastructure could reduce this dependency, lower costs, and open new revenue streams by offering cloud services directly to developers.

• Status and Challenges: Despite significant internal discussions led by former cloud chief Michael Abbott, the project’s future is uncertain following his departure. Reports indicate the initiative has been paused or is on hold, with no official commercial launch yet. However, the potential remains for Apple to enter the cloud market, leveraging its silicon advantage and developer ecosystem.

• Developer Ecosystem Integration: Apple envisions a seamless cloud platform integrated with its development tools like Xcode and iCloud, enabling developers to run simulations, machine learning training, and other demanding tasks on Apple-optimized servers, enhancing the overall developer experience.

Apple has seriously considered launching a cloud service to compete with AWS, Azure, and Google Cloud by utilizing its efficient M-series chips to deliver AI and compute services tailored for developers. While the project has not yet materialized commercially and faces leadership changes, it represents a strategic opportunity for Apple to expand beyond hardware and software into cloud infrastructure.