Powering Up: Data Centers Get Direct Energy Access

The Federal Energy Regulatory Commission (FERC) has given the green light for tech giants to tap directly into power plants to fuel their massive data centers. This move, aimed at boosting the U. S. 's lead in artificial intelligence and manufacturing, comes as the mid-Atlantic region braces for potential electricity shortages.

Key Points

• FERC's Unanimous Decision: Clears the path for so-called colocation agreements, allowing big energy users to bypass traditional grid systems.
• Potential Impact: Could set a precedent for future requests from the Trump administration to meet surging energy demands.
• Concerns: Regular ratepayers might bear the brunt of new power plants and transmission lines built to support these energy-hungry data centers.
• FERC Chair Laura Swett: Emphasized that this step is crucial for meeting historic demand and realizing the country's potential.

Mid-Atlantic Region Faces Looming Challenge

The mid-Atlantic territory, home to 65 million people, faces a looming challenge. The rapid build-out of data centers is outpacing the development of new power sources, raising alarms about future electricity shortages.

OpenAI Declares "Code Red"

In the realm of artificial intelligence, OpenAI has declared a "code red," redirecting resources to improve ChatGPT and delay other projects. This isn't the first time OpenAI has issued such a directive, which aims to focus efforts on a single goal.

Key Developments

• Latest "Code Red": Came after Google's AI model outperformed OpenAI's best software on several benchmarks.
• OpenAI's CEO, Sam Altman: Called for staffers to prioritize ChatGPT's improvements, ensuring it works quickly and reliably.
• Recent Updates: OpenAI has rolled out several updates, including a more advanced AI model for coding, science, and various work tasks. The company also unveiled a new image-generating AI model to enhance visuals.
• Future Commitments: OpenAI is committed to spending $1.4 trillion on infrastructure over the next eight years to support increasingly capable AI models.

Beef Prices Continue to Soar

Beef prices continue to soar, with no signs of cooling down. The average price for ground beef hit $6.781 a pound in November, up 2.1 percent from September and 15 percent from a year earlier. Steak prices also rose, reaching $12.285 a pound.

Key Factors

• Trump Administration Efforts: Despite efforts to rein in costs, beef prices keep setting records.
• Historically Small U. S. Cattle Herd: Contributes to the price hike.
• Strong Demand for Ground Products: Another contributing factor.
• Trump Administration Actions: Targeted runaway beef prices, calling for a price-fixing investigation into meatpackers and removing tariffs on Brazilian shipments. The USDA has also rolled out a program to support American ranchers, including expanded grazing access.
• Beef Imports: Projected to jump 15 percent this year, with the USDA raising its 2026 forecast for foreign shipments after the Trump administration lifted levies. However, the expected influx of supplies will be tempered by a broader decline in Brazilian beef production.

Instacart to Pay $60 Million in Refunds

In the consumer sector, Instacart will pay $60 million to refund customers deceived into enrolling in its subscription service, Instacart+. The FTC accused the company of misleading consumers by charging a mandatory grocery delivery fee despite advertising "free" first orders.

Key Points

• Instacart's Practices: Failed to clearly disclose the terms of its subscription service and refused to offer refunds, instead providing credits for future orders.
• Company's Denial: Instacart denies any wrongdoing, standing firmly behind the integrity and transparency of its programs.
• Scrutiny Over Pricing Practices: A report highlighted that the company's AI-enabled experiments charge customers different prices for the same product. The company defended its practices, stating that the report inaccurately blurred together different pricing methods.