Massive AI buildout poses latest inflation threat as consumers pay more for laptops and electricity
WASHINGTON (AP) — American consumers — and the Federal Reserve — are being hit with another high-cost headache. The gusher of investment in data centers — likely topping $700 billion this year — to power artificial intelligence has made memory chips, computer processors, and other equipment, as well as electricity more expensive, and economists expect it will continue to push up inflation at least through the end of this year. While it won’t be as large a spike as occurred in 2021-2023, when inflation peaked at 9.1%, massive AI spending is likely to keep prices rising more quickly than the Federal Reserve would like.
Oil prices jump and world shares are mixed as US and Iran carry out airstrikes
BANGKOK (AP) — Oil prices have jumped and world shares are mixed after the U.S. carried out airstrikes and Iran retaliated. The prices of Brent crude and U.S. benchmark crude gained more than 2% early Monday. South Korea's Kospi sank 9%. On Friday, U.S. stocks rose as Wall Street showed its appetite is still big for winners of the artificial-intelligence boom. The S&P 500 rose 0.4% and the Dow Jones Industrial Average added 0.3%. The Nasdaq composite climbed 0.3%. Shares of South Korean memory chipmaker SK Hynix soared 13% in their debut on Wall Street. Early Monday, Seoul-traded shares SK Hynix slumped 15.4%, while bigger rival Samsung Electronics lost 10.7%.
Keystone Pipeline system's operator agrees to pay a $26.9M penalty over a major Kansas oil spill
TOPEKA, Kan. (AP) — A proposed legal settlement with the U.S. government would require the Keystone Pipeline system’s operator to pay a civil penalty of nearly $27 million over a major oil spill in Kansas in December 2022. Canada-based South Bow also would spend about $40 million to prevent future accidents under terms of the agreement filed Friday in U.S. District Court in Kansas. The agreement would resolve allegations that South Bow violated U.S. and Kansas clean water laws in operating the pipeline. The 2002 rupture dumped nearly 13,000 barrels of heavy crude oil into a creek in Washington County, about 150 miles northwest of Kansas City. The company disputes the allegations.
Focus turns to building stronger institutions in Africa to speed shift to renewable energy
NAIROBI, Kenya (AP) — Africa’s renewable energy transition is entering a new phase as the continent shifts from proving that clean energy works to building the institutions needed to deploy it at scale. As industrialization, artificial intelligence and electrification boost demand for electricity, experts say the energy transition bottleneck has shifted from technology to the systems that support it. They believe strengthening those foundations could help unlock private capital and hasten projects That would enable African countries to meet rapidly rising demand and fortify economic growth. A $285 million commitment by Bloomberg Philanthropies highlights growing recognition that stronger regulation, market design and technical capacity are essential to accelerating renewable energy investment.
Volkswagen CEO looks to avoid plant closures as automaker moves to cut costs
BERLIN (AP) — Volkswagen’s CEO has indicated that he’s trying to avoid closing plants as he seeks to turn around the automaker’s performance. The Wolfsburg, Germany-based company faces pressure to cut costs at home and increasingly intense competition in the lucrative Chinese market, in particular. Last week, Volkswagen said its “fundamental realignment” over the past three years had reached its next phase, announcing plans to streamline the model lineup by up to half. It didn’t provide specifics, and questions remain over how else it will cut costs. There has been renewed speculation about the future of several plants in Germany. CEO Oliver Blume said in remarks published Sunday that "there are more intelligent solutions than closing plants."
Disney's live-action 'Moana' crashes to shore with an underwhelming splash at the box office
Disney's live-action “Moana” may be the top movie at the box office, but it didn't make a big splash in its first weekend. Studio estimates on Sunday show the film earned $43 million in the U.S. and Canada. Internationally, it earned $52 million, for a global total of $95 million. The movie cost a reported $250 million to produce. Disney's live-action remakes have had mixed success and competition from other family films may have impacted “Moana's” performance. There are currently three PG-rated movies in the top five, including “Minions & Monsters” and “Toy Story 5.”
America In Focus: Fed officials divided on US inflation views; US home prices hit all-time high
The Federal Reserve’s rate-setting committee is split over whether inflation is likely to stay elevated or whether it will cool once the Iran war winds down, according to minutes released Wednesday. Meanwhile, sales of previously occupied U.S. homes slowed in June, but a key measure of home prices climbed to an all-time high, adding to prospective homebuyers’ affordability challenges. he U.S. median sales price increased 1.8% in June from a year earlier to $440,600, an all-time high on data going back to 1999, the National Association of Realtors said Thursday.
Apple files lawsuit accusing ChatGPT maker OpenAI of stealing trade secrets
Apple on Friday accused OpenAI of stealing trade secrets as it seeks to build its own hardware for ChatGPT. This is a major rupture in a partnership between the iPhone maker and the artificial intelligence company. Apple said in the lawsuit filed in a California federal court that the theft of its trade secrets was part of a “coordinated pattern of misconduct at an institutional level” by OpenAI. Two former Apple employees who now work for OpenAI are also named as defendants. OpenAI did not immediately respond to requests for comment.
Global oil demand is dropping, but US drivers keep buying more gas
NEW YORK (AP) — Global oil demand is set to decline this year for the first time since 2020. The International Energy Agency expects a drop of about 1 million barrels per day by 2026. This decline is due to higher oil prices and supply disruptions caused by the U.S.-Iran conflict. In May, global demand fell to 97.9 million barrels per day, with Asia seeing the most significant drop. China reduced its oil purchases, cutting consumption by almost 6 million barrels per day. Meanwhile, U.S. gasoline use increased despite high prices. A fragile ceasefire allowed some oil to exit the Strait of Hormuz, stabilizing prices.
As gas plants rise to power AI, renewable energy allies are fighting for cleaner alternatives
HARRISBURG, Pa. (AP) — Renewable energy allies are trying to ensure that massive data centers will be powered by climate-friendly sources. Lawmakers in states with stronger climate policies don’t want data centers to hinder their goal of slashing planet-warming greenhouse gas emissions. In other states, environmental advocates and corporations with clean energy goals are working regulatory levers. Legislation in New York would require bigger data centers to get at least 90% of their energy from renewable energies by 2040. State Sen. Kristen Gonzalez wrote the bill and says wealthy companies putting billions of dollars into data centers can afford to build renewable energy sources to power them.
