Tech

Global race for AI infrastructure amid soaring energy costs

Japan invests ¥1 trillion in AI infrastructure amid global tech race as energy costs and concerns rise

Published

2 months ago

December 22, 2025

Harvey Vargas

Japan invests ¥1 trillion in AI infrastructure amid global tech race as energy costs and concerns rise

In Short:
– Japan plans to invest ¥1 trillion in domestic AI to enhance infrastructure and compete globally.
– China is focusing on technological independence as domestic chipmakers prepare for public offerings.

Japan plans to invest ¥1 trillion ($6.34 billion) over five years in a domestic artificial intelligence company. This initiative aims to build infrastructure for AI, despite rising electricity costs raising concerns about the industry’s sustainability.The government will collaborate with SoftBank Group and Preferred Networks to develop the largest foundation model in Japan, employing around 100 engineers to compete globally. This effort reflects worries about the risks of relying on foreign AI technology.

China is also increasing its focus on technological independence. Domestic chipmakers are preparing for public offerings to enhance their capabilities, following successful launches by Moore Threads and MetaX in Shanghai. Companies such as Biren Technology and Baidu’s Kunlunxin are also planning to go public.

SoftBank is pursuing a $22.5 billion funding commitment to OpenAI by year-end, by selling assets and securing loans. CEO Masayoshi Son’s significant investment signifies a strong commitment to AI infrastructure.

AI Infrastructure

The rapid expansion of data centers is putting pressure on energy resources. Projections suggest data centers will consume 945 terawatt-hours by 2030, nearly tripling from 415 TWh in 2024. In the U.S., energy use by data centers could reach 9% to 12% of total supply by 2028.

Concerns have arisen over whether tech companies’ activities are raising residential electricity costs, with investigations launched by three Democratic senators targeting major companies like Alphabet, Microsoft, and Amazon. Utilities face significant expenses to upgrade grids, which may be passed on to consumers.

The energy demand is benefiting companies that supply power infrastructure. Jefferies recently upgraded GE Vernova to Buy, citing expected growth in gas pricing and long-term service demand amid rising energy needs.

Tech

OpenAI and Anthropic launch faster, smarter AI tools for enterprise coding

OpenAI and Anthropic launch advanced coding models, revolutionizing enterprise software development and intensifying the AI tooling competition.

Published

3 days ago

February 6, 2026

Harvey Vargas

OpenAI and Anthropic launch advanced coding models, revolutionising enterprise software development and intensifying the AI tooling competition.

OpenAI and Anthropic have unveiled powerful new AI coding models aimed at transforming enterprise software development. GPT-5.3 Codex operates 25% faster than its predecessor, tackling complex tasks and following real-time directions without losing context.

Claude Opus 4.6 introduces ‘agent teams’, allowing multiple AI agents to work on tasks simultaneously. The update also includes a one-million-token context window, enabling large volumes of text and code to be processed in a single prompt.

GitHub now supports multiple coding agents, letting developers compare AI approaches on the same problems. Both OpenAI and Anthropic are pushing for enterprise adoption, highlighting the potential for professional applications across industries.

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#AI #MachineLearning #TechNews #EnterpriseTech #OpenAI #Anthropic #SoftwareDevelopment #Coding

Tech

Nvidia and Amazon explore massive OpenAI funding round

Nvidia CEO downplays $100B OpenAI investment, as Amazon eyes $50B stake in AI startup

Published

1 week ago

February 2, 2026

Harvey Vargas

Nvidia CEO downplays $100B OpenAI investment, as Amazon eyes $50B stake in AI startup

In Short:
– OpenAI aims to raise up to $100 billion, with Amazon considering a $50 billion investment.
– Funding will support Project Stargate and address projected losses of $14 billion by 2026.

Nvidia’s CEO has confirmed the company will participate in a major funding round for OpenAI, though the previously mentioned $100 billion commitment is not final.

This investment comes as OpenAI seeks to raise up to $100 billion, potentially valuing the AI startup at around $830 billion. Amazon is also reportedly in discussions to contribute up to $50 billion.

The funding is intended to support OpenAI’s ambitious $500 billion Project Stargate, aimed at pushing the boundaries of artificial intelligence.

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News

Big Tech earnings spark investor unease over AI spending

Investors monitor Big Tech’s AI investments, with Meta thriving while Microsoft and Tesla face uncertainty over growth and returns.

Published

1 week ago

January 30, 2026

Harvey Vargas

Investors monitor Big Tech’s AI investments, with Meta thriving while Microsoft and Tesla face uncertainty over growth and returns.

Investors are reacting sharply to Big Tech earnings this week, sending a clear signal that massive spending must translate into real growth. Markets are becoming less forgiving as companies pour billions into artificial intelligence, data centres and future tech while returns remain uncertain.

Meta has delivered a standout performance, posting a 24 percent jump in revenue for the December quarter, fuelled by AI-powered advertising. The company is doubling down on its strategy, with aggressive investment in AI and infrastructure expected to drive a further 33 percent growth this quarter.

Microsoft and Tesla tell a more cautious story. Microsoft reported only modest growth in its Azure cloud business, raising questions about its exposure to OpenAI, while Tesla plans to double spending on AI and autonomous driving. Analysts warn of a widening gap between bold AI ambitions and what investors expect in returns.

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