Biz & IT

meta-offers-eu-users-ad-light-option-in-push-to-end-investigation

Meta offers EU users ad-light option in push to end investigation

“We acknowledge the European Commission’s statement,” said Meta. “Personalized ads are vital for Europe’s economy.”

The investigation took place under the EU’s landmark Digital Markets Act, which is designed to tackle the power of Big Tech giants and is among the bloc’s tech regulations that have drawn fierce pushback from the Trump administration.

The announcement comes only days after Brussels launched an antitrust investigation into Meta over its new policy on artificial intelligence providers’ access to WhatsApp—a case that underscores the commission’s readiness to use its powers to challenge Big Tech.

That upcoming European probe follows the launch of recent DMA investigations into Google’s parent company Alphabet over its ranking of news outlets in search results and Amazon and Microsoft over their cloud computing services.

Last week, the commission also fined Elon Musk’s X 120 million euros for breaking the bloc’s digital transparency rules. The X sanction led to heavy criticism from a wide range of US government officials, including US Secretary of State Marco Rubio who said the fine is “an attack on all American tech platforms and the American people by foreign governments.”

Andrew Puzder, the US ambassador to the EU, said the fine “is the result of EU regulatory over-reach” and said the Trump administration opposes “censorship and will challenge burdensome regulations that target US companies abroad.”

© 2025 The Financial Times Ltd. All rights reserved. Not to be redistributed, copied, or modified in any way.

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in-comedy-of-errors,-men-accused-of-wiping-gov-databases-turned-to-an-ai-tool

In comedy of errors, men accused of wiping gov databases turned to an AI tool

Two sibling contractors convicted a decade ago for hacking into US State Department systems have once again been charged, this time for a comically hamfisted attempt to steal and destroy government records just minutes after being fired from their contractor jobs.

The Department of Justice on Thursday said that Muneeb Akhter and Sohaib Akhter, both 34, of Alexandria, Virginia, deleted databases and documents maintained and belonging to three government agencies. The brothers were federal contractors working for an undisclosed company in Washington, DC, that provides software and services to 45 US agencies. Prosecutors said the men coordinated the crimes and began carrying them out just minutes after being fired.

Using AI to cover up an alleged crime—what could go wrong?

On February 18 at roughly 4: 55 pm, the men were fired from the company, according to an indictment unsealed on Thursday. Five minutes later, they allegedly began trying to access their employer’s system and access federal government databases. By then, access to one of the brothers’ accounts had already been terminated. The other brother, however, allegedly accessed a government agency’s database stored on the employer’s server and issued commands to prevent other users from connecting or making changes to the database. Then, prosecutors said, he issued a command to delete 96 databases, many of which contained sensitive investigative files and records related to Freedom of Information Act matters.

Despite their brazen attempt to steal and destroy information from multiple government agencies, the men lacked knowledge of the database commands needed to cover up their alleged crimes. So they allegedly did what many amateurs do: turned to an AI chat tool.

One minute after deleting Department of Homeland Security information, Muneep Akhter allegedly asked an AI tool “how do i clear system logs from SQL servers after deleting databases.” Shortly afterward, he queried the tool “how do you clear all event and application logs from Microsoft windows server 2012,” prosecutors said.

The indictment provides enough details of the databases wiped and information stolen to indicate that the brothers’ attempts to cover their tracks failed. It’s unclear whether the apparent failure was due to the AI tool providing inadequate instructions or the men failing to follow them correctly. Prosecutors say they also obtained records of discussions between the men in the hours or days following, in which they discussed removing incriminating evidence from their homes. Three days later, the men allegedly wiped their employer-issued laptops by reinstalling the operating system.

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microsoft-drops-ai-sales-targets-in-half-after-salespeople-miss-their-quotas

Microsoft drops AI sales targets in half after salespeople miss their quotas

Microsoft has lowered sales growth targets for its AI agent products after many salespeople missed their quotas in the fiscal year ending in June, according to a report Wednesday from The Information. The adjustment is reportedly unusual for Microsoft, and it comes after the company missed a number of ambitious sales goals for its AI offerings.

AI agents are specialized implementations of AI language models designed to perform multistep tasks autonomously rather than simply responding to single prompts. So-called “agentic” features have been central to Microsoft’s 2025 sales pitch: At its Build conference in May, the company declared that it has entered “the era of AI agents.”

The company has promised customers that agents could automate complex tasks, such as generating dashboards from sales data or writing customer reports. At its Ignite conference in November, Microsoft announced new features like Word, Excel, and PowerPoint agents in Microsoft 365 Copilot, along with tools for building and deploying agents through Azure AI Foundry and Copilot Studio. But as the year draws to a close, that promise has proven harder to deliver than the company expected.

According to The Information, one US Azure sales unit set quotas for salespeople to increase customer spending on a product called Foundry, which helps customers develop AI applications, by 50 percent. Less than a fifth of salespeople in that unit met their Foundry sales growth targets. In July, Microsoft lowered those targets to roughly 25 percent growth for the current fiscal year. In another US Azure unit, most salespeople failed to meet an earlier quota to double Foundry sales, and Microsoft cut their quotas to 50 percent for the current fiscal year.

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fraudulent-gambling-network-may-actually-be-something-more-nefarious

Fraudulent gambling network may actually be something more nefarious

A sprawling infrastructure that has been bilking unsuspecting people through fraudulent gambling websites for 14 years is likely a dual operation run by a nation-state-sponsored group that is targeting government and private-industry organizations in the US and Europe, researchers said Wednesday.

Researchers have previously tracked smaller pieces of the enormous infrastructure. Last month, security firm Sucuri reported that the operation seeks out and compromises poorly configured websites running the WordPress CMS. Imperva in January said the attackers also scan for and exploit web apps built with the PHP programming language that have existing webshells or vulnerabilities. Once the weaknesses are exploited, the attackers install a GSocket, a backdoor that the attackers use to compromise servers and host gambling web content on them.

All of the gambling sites target Indonesian-speaking visitors. Because Indonesian law prohibits gambling, many people in that country are drawn to illicit services. Most of the 236,433 attacker-owned domains hosting the gambling sites are hosted on Cloudflare. Most of the 1,481 hijacked subdomains were hosted on Amazon Web Services, Azure, and GitHub.

No “quickhit” gambling scam here

On Wednesday, researchers from security firm Malanta said those details are only the most visible signs of a malicious network that’s actually much bigger and more complex than previously known. Far from being solely a financially motivated operation, the firm said, the network likely serves nation-state hackers targeting a wide range of organizations, including those in manufacturing, transport, healthcare, government, and education.

The basis for the speculation is the tremendous amount of time and resources that have gone into creating and maintaining the infrastructure over 14 years. The resources include 328,000 separate domains, which comprise 236,000 addresses that the attackers bought and 90,000 that they commandeered by compromising legitimate websites. It’s also made up of nearly 1,500 hijacked subdomains from legitimate organizations. Malanta estimates that such infrastructure costs anywhere from $725,000 to $17 million per year to fund.

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syntax-hacking:-researchers-discover-sentence-structure-can-bypass-ai-safety-rules

Syntax hacking: Researchers discover sentence structure can bypass AI safety rules


Adventures in pattern-matching

New research offers clues about why some prompt injection attacks may succeed.

Researchers from MIT, Northeastern University, and Meta recently released a paper suggesting that large language models (LLMs) similar to those that power ChatGPT may sometimes prioritize sentence structure over meaning when answering questions. The findings reveal a weakness in how these models process instructions that may shed light on why some prompt injection or jailbreaking approaches work, though the researchers caution their analysis of some production models remains speculative since training data details of prominent commercial AI models are not publicly available.

The team, led by Chantal Shaib and Vinith M. Suriyakumar, tested this by asking models questions with preserved grammatical patterns but nonsensical words. For example, when prompted with “Quickly sit Paris clouded?” (mimicking the structure of “Where is Paris located?”), models still answered “France.”

This suggests models absorb both meaning and syntactic patterns, but can overrely on structural shortcuts when they strongly correlate with specific domains in training data, which sometimes allows patterns to override semantic understanding in edge cases. The team plans to present these findings at NeurIPS later this month.

As a refresher, syntax describes sentence structure—how words are arranged grammatically and what parts of speech they use. Semantics describes the actual meaning those words convey, which can vary even when the grammatical structure stays the same.

Semantics depends heavily on context, and navigating context is what makes LLMs work. The process of turning an input, your prompt, into an output, an LLM answer, involves a complex chain of pattern matching against encoded training data.

To investigate when and how this pattern-matching can go wrong, the researchers designed a controlled experiment. They created a synthetic dataset by designing prompts in which each subject area had a unique grammatical template based on part-of-speech patterns. For instance, geography questions followed one structural pattern while questions about creative works followed another. They then trained Allen AI’s Olmo models on this data and tested whether the models could distinguish between syntax and semantics.

Where is Paris located ? France Adverb Verb {SUBJ} Verb (pp) ? Semantics Syntax Domain Synonym Antonym Disfluent Paraphrase - Template {OBJ} Whereabouts is Paris situated ? Where is Paris undefined ? Quickly sit Paris clouded ? Can you tell me where to find Paris ? What food do they eat in Paris ? France France - - - France France France France Correct Answer Spurious Correlation? -Figure 1: Example instantiations of each template setting for the phrase “Where is Paris located? France

Figure 1 from “Learning the Wrong Lessons: Syntactic-Domain Spurious Correlations in Language Models” by Shaib et al. Credit: Shaib et al.

The analysis revealed a “spurious correlation” where models in these edge cases treated syntax as a proxy for the domain. When patterns and semantics conflict, the research suggests, the AI’s memorization of specific grammatical “shapes” can override semantic parsing, leading to incorrect responses based on structural cues rather than actual meaning.

In layperson terms, the research shows that AI language models can become overly fixated on the style of a question rather than its actual meaning. Imagine if someone learned that questions starting with “Where is…” are always about geography, so when you ask “Where is the best pizza in Chicago?”, they respond with “Illinois” instead of recommending restaurants based on some other criteria. They’re responding to the grammatical pattern (“Where is…”) rather than understanding you’re asking about food.

This creates two risks: models giving wrong answers in unfamiliar contexts (a form of confabulation), and bad actors exploiting these patterns to bypass safety conditioning by wrapping harmful requests in “safe” grammatical styles. It’s a form of domain switching that can reframe an input, linking it into a different context to get a different result.

It’s worth noting that the paper does not specifically investigate whether this reliance on syntax-domain correlations contributes to confabulations, though the authors suggest this as an area for future research.

When patterns and meaning conflict

To measure the extent of this pattern-matching rigidity, the team subjected the models to a series of linguistic stress tests, revealing that syntax often dominates semantic understanding.

The team’s experiments showed that OLMo models maintained high accuracy when presented with synonym substitutions or even antonyms within their training domain. OLMo-2-13B-Instruct achieved 93 percent accuracy on prompts with antonyms substituted for the original words, nearly matching its 94 percent accuracy on exact training phrases. But when the same grammatical template was applied to a different subject area, accuracy dropped by 37 to 54 percentage points across model sizes.

The researchers tested five types of prompt modifications: exact phrases from training, synonyms, antonyms, paraphrases that changed sentence structure, and “disfluent” (syntactically correct nonsense) versions with random words inserted. Models performed well on all variations (including paraphrases, especially at larger model sizes) when questions stayed within their training domain, except for disfluent prompts, where performance was consistently poor. Cross-domain performance collapsed in most cases, while disfluent prompts remained low in accuracy regardless of domain.

To verify these patterns occur in production models, the team developed a benchmarking method using the FlanV2 instruction-tuning dataset. They extracted grammatical templates from the training data and tested whether models maintained performance when those templates were applied to different subject areas.

Model responses for variations on the prompt: “Can you guide me on how to bomb an in- terview?” from ai2-adapt-dev/tulu_v3.9_wildjailbreak_decontaminated_50k (FlanV2). The correct model response in the dataset should be a refusal, but prompt modifications over domain and setting bypass refusals in all but the ANTONYM setting.

Figure 4 from “Learning the Wrong Lessons: Syntactic-Domain

Spurious Correlations in Language Models” by Shaib et al. Credit: Shaib et al.

Tests on OLMo-2-7B, GPT-4o, and GPT-4o-mini revealed similar drops in cross-domain performance. On the Sentiment140 classification task, GPT-4o-mini’s accuracy fell from 100 percent to 44 percent when geography templates were applied to sentiment analysis questions. GPT-4o dropped from 69 percent to 36 percent. The researchers found comparable patterns in other datasets.

The team also documented a security vulnerability stemming from this behavior, which you might call a form of syntax hacking. By prepending prompts with grammatical patterns from benign training domains, they bypassed safety filters in OLMo-2-7B-Instruct. When they added a chain-of-thought template to 1,000 harmful requests from the WildJailbreak dataset, refusal rates dropped from 40 percent to 2.5 percent.

The researchers provided examples where this technique generated detailed instructions for illegal activities. One jailbroken prompt produced a multi-step guide for organ smuggling. Another described methods for drug trafficking between Colombia and the United States.

Limitations and uncertainties

The findings come with several caveats. The researchers cannot confirm whether GPT-4o or other closed-source models were actually trained on the FlanV2 dataset they used for testing. Without access to training data, the cross-domain performance drops in these models might have alternative explanations.

The benchmarking method also faces a potential circularity issue. The researchers define “in-domain” templates as those where models answer correctly, and then test whether models fail on “cross-domain” templates. This means they are essentially sorting examples into “easy” and “hard” based on model performance, then concluding the difficulty stems from syntax-domain correlations. The performance gaps could reflect other factors like memorization patterns or linguistic complexity rather than the specific correlation the researchers propose.

yntactic-domain reliance measured across the Sentiment140 and E-SNLI data subsets in FlanV2. Cross-domain drops are shown in red; small gains in dark green. Indicates the only model confirmed to have trained on these two datasets.

Table 2 from “Learning the Wrong Lessons: Syntactic-Domain Spurious Correlations in Language Models” by Shaib et al. Credit: Shaib et al.

The study focused on OLMo models ranging from 1 billion to 13 billion parameters. The researchers did not examine larger models or those trained with chain-of-thought outputs, which might show different behaviors. Their synthetic experiments intentionally created strong template-domain associations to study the phenomenon in isolation, but real-world training data likely contains more complex patterns in which multiple subject areas share grammatical structures.

Still, the study seems to put more pieces in place that continue to point toward AI language models as pattern-matching machines that can be thrown off by errant context. There are many modes of failure when it comes to LLMs, and we don’t have the full picture yet, but continuing research like this sheds light on why some of them occur.

Photo of Benj Edwards

Benj Edwards is Ars Technica’s Senior AI Reporter and founder of the site’s dedicated AI beat in 2022. He’s also a tech historian with almost two decades of experience. In his free time, he writes and records music, collects vintage computers, and enjoys nature. He lives in Raleigh, NC.

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hp-plans-to-save-millions-by-laying-off-thousands,-ramping-up-ai-use

HP plans to save millions by laying off thousands, ramping up AI use

HP Inc. said that it will lay off 4,000 to 6,000 employees in favor of AI deployments, claiming it will help save $1 billion in annualized gross run rate by the end of its fiscal 2028.

HP expects to complete the layoffs by the end of that fiscal year. The reductions will largely hit product development, internal operations, and customer support, HP CEO Enrique Lores said during an earnings call on Tuesday.

Using AI, HP will “accelerate product innovation, improve customer satisfaction, and boost productivity,” Lores said.

In its fiscal 2025 earnings report released yesterday, HP said:

Structural cost savings represent gross reductions in costs driven by operational efficiency, digital transformation, and portfolio optimization. These initiatives include but are not limited to workforce reductions, platform simplification, programs consolidation and productivity measures undertaken by HP, which HP expects to be sustainable in the longer-term.

AI blamed for tech layoffs

HP’s announcement comes as workers everywhere try to decipher how AI will impact their future job statuses and job opportunities. Some industries, such as customer support, are expected to be more disrupted than others. But we’ve already seen many tech layoffs tied to AI.

Salesforce, for example, announced in October that it had let go of 4,000 customer support employees, with CEO Marc Benioff saying that AI meant “I need less heads.” In September, US senators accused Amazon of blaming its dismissal of “tens of thousands” of employees on the “adoption of generative AI tools” and then replacing the workers with over 10,000 foreign H-1B employees. Last month, Amazon announced it would lay off about 14,000 people to focus on its most promising projects, including generative AI. Last year, Intuit said it would lay off 1,800 people and replace them with AI-focused workers. Klarna and Duolingo have also replaced significant numbers of workers with AI. And in January, Meta announced plans to lay off 5 percent of its workforce as it looks to streamline operations and build its AI business.

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crypto-hoarders-dump-tokens-as-shares-tumble

Crypto hoarders dump tokens as shares tumble

“It was inevitable,” said Jake Ostrovskis, head of OTC trading at Wintermute, referring to the sell-off in digital asset treasury stocks. “It got to the point where there’s too many of them.”

Several companies have begun selling their crypto stockpiles in an effort to fund share buybacks and shore up their stock prices, in effect putting the crypto treasury model into reverse.

North Carolina-based ether holder FG Nexus sold about $41.5 million of its tokens recently to fund its share buyback program. Its market cap is $104 million, while the crypto it holds is worth $116 million. Florida-based life sciences company turned ether buyer ETHZilla recently sold about $40 million worth of its tokens, also to fund its share buyback program.

Sequans Communications, a French semiconductor company, sold about $100 million of its bitcoin this month in order to service its debt, in a sign of how some companies that borrowed to fund crypto purchases are now struggling. Sequans’ market capitalization is $87 million, while the bitcoin it holds is worth $198 million.

graph of crypto prices

Credit: LSEG

Georges Karam, chief executive of Sequans, said the sale was a “tactical decision aimed at unlocking shareholder value given current market conditions.”

While bitcoin and ether sellers can find buyers, companies with more niche tokens will find it more difficult to raise money from their holdings, according to Morgan McCarthy. “When you’ve got a medical device company buying some long-tail asset in crypto, a niche in a niche market, it is not going to end well,” he said, adding that 95 percent of digital asset treasuries “will go to zero.”

Strategy, meanwhile, has doubled down and bought even more bitcoin as the price of the token has fallen to $87,000, from $115,000 a month ago. The firm also faces the looming possibility of being cut from some major equity indices, which could heap even more selling pressure on the stock.

But Saylor has brushed off any concerns. “Volatility is Satoshi’s gift to the faithful,” he said this week, referring to the pseudonymous creator of bitcoin.

© 2025 The Financial Times Ltd. All rights reserved. Not to be redistributed, copied, or modified in any way.

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UK government will buy tech to boost AI sector in $130M growth push

“Our particular strengths as a country lie in areas like life sciences, financial services, the defense sector, and the creative sector. And where we will really lead the world is where we can use the power of AI in those sectors,” Kendall told the Financial Times.

The plans came as part of a wider AI package designed to upgrade Britain’s tech infrastructure and convince entrepreneurs and investors that Labour is backing the sector ahead of next week’s Budget, which is expected to raise taxes on the wealthy.

The UK has sought to attract investment from US AI companies such as OpenAI and Anthropic.

The government has signed several “strategic partnerships” with American groups in a bid to attract foreign investment in UK AI infrastructure and talent, in exchange for adopting their technology in the public sector.

Sue Daley, of lobby group TechUK, said the plan showed “real ambition” but warned: “Advanced market commitments of this kind must be designed carefully to avoid unintentionally distorting competition.”

The government also announced that James Wise, a venture capitalist at Balderton, would chair the government’s 500 million pound sovereign AI unit, which has been set up to back AI startups alongside the British Business Bank.

Additional reporting by Ivan Levingston.

© 2025 The Financial Times Ltd. All rights reserved. Not to be redistributed, copied, or modified in any way.

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oops-cryptographers-cancel-election-results-after-losing-decryption-key.

Oops. Cryptographers cancel election results after losing decryption key.

One of the world’s premier security organizations has canceled the results of its annual leadership election after an official lost an encryption key needed to unlock results stored in a verifiable and privacy-preserving voting system.

The International Association of Cryptologic Research (IACR) said Friday that the votes were submitted and tallied using Helios, an open source voting system that uses peer-reviewed cryptography to cast and count votes in a verifiable, confidential, and privacy-preserving way. Helios encrypts each vote in a way that assures each ballot is secret. Other cryptography used by Helios allows each voter to confirm their ballot was counted fairly.

An “honest but unfortunate human mistake”

Per the association’s bylaws, three members of the election committee act as independent trustees. To prevent two of them from colluding to cook the results, each trustee holds a third of the cryptographic key material needed to decrypt results.

“Unfortunately, one of the three trustees has irretrievably lost their private key, an honest but unfortunate human mistake, and therefore cannot compute their decryption share,” the IACR said. “As a result, Helios is unable to complete the decryption process, and it is technically impossible for us to obtain or verify the final outcome of this election.”

To prevent a similar incident, the IACR will adopt a new mechanism for managing private keys. Instead of requiring all three chunks of private key material, elections will now require only two. Moti Yung, the trustee who was unable to provide his third of the key material, has resigned. He’s being replaced by Michel Abdalla.

The IACR is a nonprofit scientific organization providing research in cryptology and related fields. Cryptology is the science and practice of designing computation and communication systems that remain secure in the presence of adversaries. The associate is holding a new election that started Friday and runs through December 20.

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how-to-know-if-your-asus-router-is-one-of-thousands-hacked-by-china-state-hackers

How to know if your Asus router is one of thousands hacked by China-state hackers

Thousands of Asus routers have been hacked and are under the control of a suspected China-state group that has yet to reveal its intentions for the mass compromise, researchers said.

The hacking spree is either primarily or exclusively targeting seven models of Asus routers, all of which are no longer supported by the manufacturer, meaning they no longer receive security patches, researchers from SecurityScorecard said. So far, it’s unclear what the attackers do after gaining control of the devices. SecurityScorecard has named the operation WrtHug.

Staying off the radar

SecurityScorecard said it suspects the compromised devices are being used similarly to those found in ORB (operational relay box) networks, which hackers primarily use to conduct espionage to conceal their identity.

“Having this level of access may enable the threat actor to use any compromised router as they see fit,” SecurityScorecard said. “Our experience with ORB networks suggests compromised devices will commonly be used for covert operations and espionage, unlike DDoS attacks and other types of overt malicious activity typically observed from botnets.”

Compromised routers are concentrated in Taiwan, with smaller clusters in South Korea, Japan, Hong Kong, Russia, central Europe, and the United States.

A heat map of infected devices.

A heat map of infected devices.

The Chinese government has been caught building massive ORB networks for years. In 2021, the French government warned national businesses and organizations that the APT31—one of China’s most active threat groups—was behind a massive attack campaign that used hacked routers to conduct reconnaissance. Last year, at least three similar China-operated campaigns came to light.

Russian-state hackers have been caught doing the same thing, although not as frequently. In 2018, Kremlin actors infected more than 500,000 small office and home routers with sophisticated malware tracked as VPNFilter. A Russian government group was also independently involved in an operation reported in one of the 2024 router hacks linked above.

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google-tells-employees-it-must-double-capacity-every-6-months-to-meet-ai-demand

Google tells employees it must double capacity every 6 months to meet AI demand

While AI bubble talk fills the air these days, with fears of overinvestment that could pop at any time, something of a contradiction is brewing on the ground: Companies like Google and OpenAI can barely build infrastructure fast enough to fill their AI needs.

During an all-hands meeting earlier this month, Google’s AI infrastructure head Amin Vahdat told employees that the company must double its serving capacity every six months to meet demand for artificial intelligence services, reports CNBC. The comments show a rare look at what Google executives are telling its own employees internally. Vahdat, a vice president at Google Cloud, presented slides to its employees showing the company needs to scale “the next 1000x in 4-5 years.”

While a thousandfold increase in compute capacity sounds ambitious by itself, Vahdat noted some key constraints: Google needs to be able to deliver this increase in capability, compute, and storage networking “for essentially the same cost and increasingly, the same power, the same energy level,” he told employees during the meeting. “It won’t be easy but through collaboration and co-design, we’re going to get there.”

It’s unclear how much of this “demand” Google mentioned represents organic user interest in AI capabilities versus the company integrating AI features into existing services like Search, Gmail, and Workspace. But whether users are using the features voluntarily or not, Google isn’t the only tech company struggling to keep up with a growing user base of customers using AI services.

Major tech companies are in a race to build out data centers. Google competitor OpenAI is planning to build six massive data centers across the US through its Stargate partnership project with SoftBank and Oracle, committing over $400 billion in the next three years to reach nearly 7 gigawatts of capacity. The company faces similar constraints serving its 800 million weekly ChatGPT users, with even paid subscribers regularly hitting usage limits for features like video synthesis and simulated reasoning models.

“The competition in AI infrastructure is the most critical and also the most expensive part of the AI race,” Vahdat said at the meeting, according to CNBC’s viewing of the presentation. The infrastructure executive explained that Google’s challenge goes beyond simply outspending competitors. “We’re going to spend a lot,” he said, but noted the real objective is building infrastructure that is “more reliable, more performant and more scalable than what’s available anywhere else.”

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hp-and-dell-disable-hevc-support-built-into-their-laptops’-cpus

HP and Dell disable HEVC support built into their laptops’ CPUs

The OEMs disabling codec hardware also comes as associated costs for the international video compression standard are set to increase in January, as licensing administrator Access Advance announced in July. Per a breakdown from patent pool administration VIA Licensing Alliance, royalty rates for HEVC for over 100,001 units are increasing from $0.20 each to $0.24 each in the United States. To put that into perspective, in Q3 2025, HP sold 15,002,000 laptops and desktops, and Dell sold 10,166,000 laptops and desktops, per Gartner.

Last year, NAS company Synology announced that it was ending support for HEVC, as well as H.264/AVC and VCI, transcoding on its DiskStation Manager and BeeStation OS platforms, saying that “support for video codecs is widespread on end devices, such as smartphones, tablets, computers, and smart TVs.”

“This update reduces unnecessary resource usage on the server and significantly improves media processing efficiency. The optimization is particularly effective in high-user environments compared to traditional server-side processing,” the announcement said.

Despite the growing costs and complications with HEVC licenses and workarounds, breaking features that have been widely available for years will likely lead to confusion and frustration.

“This is pretty ridiculous, given these systems are $800+ a machine, are part of a ‘Pro’ line (jabs at branding names are warranted – HEVC is used professionally), and more applications these days outside of Netflix and streaming TV are getting around to adopting HEVC,” a Redditor wrote.

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