Normale Ansicht

Received yesterday — 31. Juli 2026IT-News

Big tech spends more than $1 trillion on AI infrastructure — additional $745 billion expected to be added to the figure in 2026 alone

Amazon, Google, Meta, and Microsoft have spent more than a trillion dollars on AI infrastructure, including data centers, the chips inside them, and the power needed to run the facilities, since 2023. The Financial Times said that these four big companies have already hit $1.1 trillion in capital expenditure based on their latest earnings reports, and that an additional $745 billion is expected to be added to this figure just this year.

“There is basically no end in sight for the growth in capex,” RBC Capital analyst Rishi Jaluria told the publication. “Investors need these companies to toe the tight line between investing in AI and not compromising the things that have made them successful.” This massive investment has upended several other industries — namely electricity prices and memory and storage chips. The massive power demand that data centers have put on the power grid has forced many U.S. utility companies to spend billions of dollars to upgrade their respective infrastructure, which they then passed on to all consumers, not just the big ones that forced the upgrade.

This, alongside other environmental issues, has caused many Americans to push back against data center projects near their communities. The White House instituted the “ratepayer protection pledge” and made AI hyperscalers, utility operators, data center companies, and individual states promise that they will protect the average consumer from electricity cost increases. But so far, no state has taken a step to codify this pledge into law. Oregon actually enacted the POWER Act, which resulted in a 30% increase in the power bill of users that consumed more than 20MW while slashing the bills of residents by 1.3%, but the state did this in 2025, way before President Donald Trump called the tech giants into the White House and told them to “pay their own way.”

The mountains of cash that these tech giants are pouring into AI are also affecting the memory and storage chip industry. Since these AI hyperscalers have a lot of liquidity from investors, they are willing to pay top dollar for the HBM they need to run their data centers. Because of this, it made sense for Micron, Samsung, and SK hynix to prioritize them over DRAM, especially as they can charge a premium for these chips and there are customers who are willing to pay at those prices. This resulted in a shortage of consumer memory that started in 2025 — while this initially affected PC builders and enthusiasts, it has started to affect other industries that require memory as well, including cars and smartphones. Even Apple, which historically had huge sway over its suppliers, was forced to increase prices because of the shortages.

Aside from skewing other industries, the massive CAPEX the big four are going into is alarming some experts, warning that the promises and contracts they’re making are leading to “hidden debt” not listed in their balance sheets. The amount, worth around $1.65 trillion, is annotated in their quarterly financial statements as future obligations that will only come into play as the related asset or service comes online. The current value is 122% of the actual debt reflected on their balance sheets, which could give investors the wrong impression that they have fewer obligations than they actually have.

While the amount of money that the big four are spending on AI might seem dizzyingly high, we must note that these companies are raking in massive amounts of cash quarterly themselves. Microsoft’s latest quarterly revenue is $90 billion, while Meta made $60 billion in the same period. Alphabet (Google) announced revenue of nearly $120 billion, while Amazon made $200 billion. That is a total of nearly $470 billion for these companies in just the last quarter.

Still, that does not mean that they can just keep on spending on AI. For example, even though Google’s cloud business had a revenue of $11 billion last year, its price dropped after it announced that it spent more than it made last quarter — the first time this happened in the 20 years since it went public. Meta is also planning to rent out its AI compute, apparently following in the footsteps of Amazon, Google, and Microsoft, which have growing cloud businesses. However, this announcement caused a drop in its stock price. “They are a bit all over the place,” SLC Management managing director Dec Mullarkey told FT. “For investors it’s no longer growth at any cost; they want to see the spending flowing through to results, like at the Big Three.”

Keyboard giant Keychron launches Nape Pro wireless trackball mouse — rectangular form factor designed to sit under spacebar gives users six customizable buttons and a control dial

Keychron, which is known for its mechanical keyboards, just launched a wireless trackball mouse designed to comfortably sit underneath your space bar, complete with six programmable buttons. The Nape Pro wireless trackball mouse is now available on Amazon for $89.99. Although it may look pricey, with comparable ergonomic trackball mice often priced significantly lower, its unique rectangular design makes it the perfect companion for programmers, writers, and those who primarily use the keyboard for productivity. The placement means you don’t have to lift your hands from the keyboard to move the cursor, although it will get in the way if you prefer using a wrist rest.

The keyboard maker revealed the quirky trackball mouse earlier this year at CES, and it’s finally available for those who are interested. It’s wireless, sports six customizable buttons and a control dial, so you can also use it as a macro pad that you can place to the left or right of your keyboard or drawing tablet (or even center, if you have a split keyboard) and pair it with one of the best gaming mice for regular use. But what makes the Nape Pro more useful and powerful is the customizability that Keychron offers. You can change the functions of each button and the dial on the trackball mouse to exactly match what you need. It also has up to seven layers, so you can change what each button does based on what you need.

There are other trackball mice available on the market, like the Elecom Huge Plus with its 52mm ball and 10 programmable buttons (by comparison, the Nape Pro only has a 25mm ball), but they’re mostly designed to replace your mouse with their ergonomic designs. The Keychron trackball, on the other hand, feels like it’s there to complement your current ergonomic mouse and not replace it entirely.

This trackball mouse is another unique product from Keychron, which is known for making one of the best wireless and best budget mechanical keyboards. The keyboard company also makes different types of mice for basic use, productivity, and gaming, but it seems that it hasn’t hit the home run yet on these models. Perhaps the Nape Pro, which is like a hybrid macro pad and trackball mouse, would help elevate its mice to the same level as some of its mechanical keyboards, like the Keychron K3 Ultra.

Startup plans to put nuclear-powered data centers in the sea — modular units could be much faster to deploy, but questions about reliability and longevity remain

Data centers on land are facing increasing opposition and having a hard time getting off the ground — from power connection issues that can take months or years to resolve, to neighborhood concerns about noise and air pollution, as well as their impact on the local water supply. One startup called Atomarine wants to solve this by building nuclear-powered data centers on barges and deploying them at sea.

There have already been various proposals to put data centers out at sea (or even submerged) from established names and startups. We’ve seen conventional examples from companies like Samsung Heavy Industries and Japanese shipping company MOL who to put the servers on dedicated ships and are powered by liquefied natural gas (LNG). There are also more innovative solutions from startups that want to put them in the bases of ocean-based wind turbines or in wave energy converters.

Atomarine differs by building data centers as floating barges, similar to floating oil platforms, which can be deployed anywhere — even in international waters. This should help cut down on the permitting process, and it doesn’t have to worry about disturbing neighbors. The electricity needed to run the infrastructure is then delivered by a power ship moored alongside the barge supplied by LNG ships. Once small modular nuclear reactors (SMRs) become commercially available and certified for shipboard use, operators can then swap out the conventionally powered electricity suppliers with a nuclear one relatively quickly. And because these data center barges are modular in nature, it would be relatively easy to upgrade and scale the floating data center.

While this project sounds promising, building a megastructure like this comes with several challenges. The biggest one is that the ocean is massive and unpredictable, so these barges must be engineered to face extreme weather conditions, making them quite expensive to deploy. It must also be connected to high-speed internet (unless the operators plan to ship tons of drives daily), so they’ll have to lay undersea cables, as well. Furthermore, data servers are particularly sensitive equipment, so they must be upgraded to ensure that they can withstand the continuous rolling motion and the salty environment of the sea. There’s also the question of an SMR’s viability in shipborne use, although the U.S. Navy already has a good track record of running nuclear reactors aboard massive vessels.

The mounting opposition against data centers, both by the general public and politicians, is making it harder and more time-consuming to build new projects across the U.S. While an ocean-based data center like this is likely going to be significantly more expensive and technically challenging than land-based developments, this might become the fastest option in the future if the idea proves to be viable.

Amazon accidentally spent $1.8 million using Claude for menial coding task, went 860% over budget —'catastrophically expensive' coding blunders discovered in internal Amazon AI usage metrics

Amazon has several internal reports that show how AI is causing the company to overspend on various projects. The Financial Times reports that the cost overruns reached $1.8 million, and that is just for one project. These mistakes used to be “trivially cheap,” but AI models made them “catastrophically expensive,” especially as token spending drastically increased with the deployment of AI agents.

The biggest blunder, so far, is the $1.8-million bill that came from a failed Claude Sonnet AI deployment, which was supposed to match author details with listings on Amazon, representing an 860% increase over the allocated budget that was only detected some five months after the issue started happening. Other problems that surfaced include a $541,000 additional cost that came from a project building, ironically, a financial auditing tool, and a $134,000 extra expense for a system designed to reduce delivery times in the company’s logistics network.

“As with any new technology, we’re experimenting, learning and improving how we use it, including how we drive cost efficiencies,” Amazon said in an internal presentation, according to FT. “Cherry-picking small, isolated examples where teams are learning from one another and portraying them as business as usual doesn’t reflect how teams across Amazon are using AI.” And even though overspending more than a million dollars on failed AI projects might seem excessive for the average person, the tech giant’s latest quarterly revenue sits at more than $181 billion, meaning these excess AI expenses don’t even account for 0.1% of what it makes in a month.

This is not the first time that AI-related issues have cropped up in Amazon’s workflow. Earlier this year, AWS reported several outages that were driven by AI coding bot blunders, but the company fixed this by limiting the access of AI agents instead of giving them the same permissions as the senior engineers that they’re tied to. It also used to have an internal leaderboard that showed which employees used AI the most, but has since dropped it as spiraling AI costs made them think twice about the policy.

Many tech companies have been pushing their people to use AI, supposedly to increase productivity through tokenmaxxing. However, the Uber CTO said that there is no link between this policy and shipping successful products. And as agents took over and AI providers switched from subscription to per-token models, costs have become so great that companies are using up their annual budgets in a matter of weeks. While this might not be an immediate issue for tech giants like Amazon and Microsoft, it is unsustainable for most other companies out there.

Received before yesterdayIT-News

$21 Nintendo Wii U upgrade lets you add TBs of storage to your console with an M.2 or SATA SSD — upgrade makes console slightly faster, but requires Homebrew and custom firmware

The Peaceful Outcome, a retro gaming solutions provider, has announced an SSD upgrade kit for the Wii U, allowing owners to increase the storage on their console from 8GB or 32GB to 1TB or higher. You get the kit for $21.99 on the TPO shop. It lets you internally attach a SATA or NVMe M.2 drive of various sizes so you can directly load your games on your Wii U without needing an external drive or to swap out DVDs. It also comes with a USB port that lets you transfer files to your SSD without needing to disassemble your console again.

The m.22WiiU now supports NVMe drives as well as SATA.https://t.co/uzJbRLHJSBFor clarity, there is no improvement in speed or any other aspect going from SATA to NVMe on the Wii U. Its just going to be easier to find m.2 NVMe drives in the future, so we wanted to expand the… https://t.co/YA7QpF3KEq pic.twitter.com/Uaj7tej2OuJuly 29, 2026

You can already get a 3.5-inch SATA hard drive mounting kit at the same price (or a 2.5-inch kit for $17.99), but TPO said that it created the M.2 version for longevity reasons. It also noted that SSDs won’t give you a significant performance boost on the Wii U — an SSD loads just 7.5% faster than the DVD drive and 6% quicker compared to a hard drive — but it does give you more space to save your games on the console. TPO said that this does not offer any performance uplifts versus SATA drives, but it created this anyway because of easier M.2 NVMe drive availability in the future.

Note that this isn’t a straightforward upgrade — first, you have to provide your own drive, which could be one of the best SSDs you can get today or one that you already have lying around at home, and then you’ll need to break open your console to install the kit. This is the easy (and most expensive, given current storage pricing) part. Once done, you’ll need to hack into your console so that it can use the custom Aroma firmware. While there’s a complete guide on how to install it, it’s not without risk, as there’s a small chance that you could brick your device during the process.

If you’ve previously purchased a drive upgrade kit from TPO in the past, you could get updated parts to upgrade your current kit at shipping cost. All you need to do is upgrade the firmware on your interposer board, and you should be good to go.

While the Nintendo Wii U already accepts external drives, installing this upgrade kit will give your console more storage without needing to have a bulky drive hanging outside it all the time. This upgrade is more for aesthetics, but if you’re willing to accept the risk of (or already have) homebrew software, then finding a way to have a “permanent” storage upgrade on your Wii U is a no-brainer.

30 Georgia homes are being acquired via sale or eminent domain to expand power grid — one affected family member says it’s ‘for the data centers’

The largest utility company in Georgia is conducting a massive upgrade of its grid, and part of this project requires the connecting its Ashley Park Substation to Plant Wansley, which is currently undergoing an upgrade. The 35-mile stretch between the two facilities will go through Fayette, Heard, Fulton, and Coweta Counties, and require the removal of 30 residential properties along its path, reports Fortune. This included Ansley Brown’s family home, who took to Instagram to share her story.

“Georgia Power is forcibly taking people’s homes, okay? They have no choice in this matter,” Brown said in her IG post. “As you can see behind me, these are the power lines, and this is my childhood home. My childhood home is being taken by Georgia Power — they’re going to bulldoze this entire property to the ground. We don’t have a choice in this. They’re going to be expanding these power lines. Why? For the data centers. All of this is for the data centers.”

Thankfully, her family was able to get in touch with their representative, Brian Jack (R-GA), who sent people on the ground to take stock of the situation and connected the two parties. Brown said in her last update that they’ve already settled with Georgia Power, with the company telling Fortune that the family has agreed to a settlement for an undisclosed amount.

While this ended up on a somewhat positive note for the family, this is an example of what one report previously warned about government using eminent domain to seize land for the AI infrastructure build out. Georgia Power isn’t exactly building the transmission line to connect a power plant directly to a data center, but AI data centers’ massive power demands have caused massive opposition to projects like this to appear nationwide. It also doesn’t help that an AI data center, which is being accused of secretly using up 29 million gallons of water, sits less than five miles to the southwest of the substation.

the Fayetteville substation sitting under five miles north of the QTS data center

(Image credit: Google Maps)

The current administration has been pushing for AI data centers, believing that it needs all that infrastructure so it can win the “AI race” against China. However, the U.S. power grid is sorely lagging behind its Asian rival, meaning U.S. power utilities and electricity providers are spending billions of dollars to upgrade the grid. This, in turn, is being passed on to every power consumer, which is heavily affecting the average American. President Donald Trump instituted and expanded the “ratepayer protection pledge” in attempt to control the spiraling costs.

California has been trying to pass a law that will codify these promises, but the same tech companies that signed the pledge are also reportedly lobbying against the bill. At the moment, Oregon is the only state that has a regulation that forces big consumers (like data centers) to pay their fair share, with industries using 20MW or more getting slapped with a 30% increase in their power bill while residents and commercial users get their costs slashed by 1.3%.

Pennsylvania town lists 43 specific demands to approve new AI data center project — developer calls local demands 'too difficult' as council slams response as 'approval by tantrum'

Plymouth Township, which sits roughly 13 miles to the north of Philadelphia, said that it will approve a new data center project on the condition that it meets 43 specific demands. While Pennsylvania state law prohibits blocking a landowner from using their property lawfully, Ars Technica says that townships can impose zoning restrictions and health and safety regulations. Because of this, Plymouth created a nine-page plan that covers everything from noise, light, and air pollution, to water and power use, as well as land use, taxes, and even future decommissioning of the data center.

Many jurisdictions would have just outright rejected or delayed the data center project, which is owned by Brian O’Neill, but Plymouth Township decided to go in a different direction. It still allowed the application to go through, as not doing so would expose the local government to legal action, but gave the developer the outlined demands (listed in pages 4 to 12 of this PDF) that it needs to meet to get the green light from its people. The township said that the applicant initially showed that they would implement that township’s provisions, which were derived from the demands of its residents.

“The Council can, should, and will do everything in its power to ensure the health, safety, and welfare of the Township, our environment, and our residents. This is always our top priority,” Council President Lynne Viscio said in a statement. “We understand that a hyperscale data center raises numerous significant concerns, issues, and questions. Accordingly, we spent considerable time researching and developing a comprehensive set of requirements to address the concerns raised by residents, our own concerns, and the issues raised by other subject matter experts.”

Unfortunately, the data center developer rejected the concerns after seeing the breakdown of demands. It then filed a second application challenging the provisions set in the zoning ordinance, saying that they make building the project “too difficult” for the developer. Plymouth Township did not look kindly upon this, saying it “is a blatant attempt by the Applicant to demand approval by tantrum.” It’s currently unclear how Plymouth Township will move forward with the issue, with the application currently awaiting approval from the Zoning Hearing Board.

As for O’Neill, he told the Philadelphia Inquirer that the accusations of was part of a “misinformation campaign” against his project, and that he has been “negotiating in good faith” with the township’s attorney and had even agreed to most of the provisions. “We are sympathetic to the fact that they are under tremendous political scrutiny from people outside the township, as well as residents inside the township, and that makes giving a landowner their property rights … challenging,” he told the local newspaper. “However, I am a landowner, and I do have rights, and it is their job to be impartial and fair in their analysis and response.”

These requirements are meant to prevent the various challenges that other communities face with data center deployments. Examples of these include a Michigan data center generating noise 24/7 that has been affecting residents for over two years, PJM Interconnection, the U.S.’s largest power region, hiking electricity prices by 76% due to AI demand, a Meta data center contaminating a city’s reclamation water supply, and Elon Musk’s Colossus 2 data center facing a lawsuit for its unpermitted natural gas turbines spewing nitrogen oxides and other pollutants.

Valve says that Steam Machine reservations won't be fulfilled until ‘the end of this year’ — company also releases CAD files for the PC console’s external shell under Creative Commons

Steam Machine fans who weren’t lucky enough to get a chance to buy the console on its first drop will have to wait until as late as December 2026 to get it. Valve said in its update that the reservation queue varies between products and regions, meaning Valve is already going through the waitlist for some versions of the consoles in select areas. However, it seems that others would have to wait longer if they chose a particularly popular trim of the Steam Machine in a region where there are many buyers, too.

“We’re fulfilling orders on a daily basis, sending out emails to reservation holders with the option to purchase in the order in which they landed on the list post-randomization. We expect everyone in the reservation queue will have the option to purchase by the end of this year,” Valve said in its update. It also added, “With each reservation queue and corresponding waitlist being per-product, per-region, they can move at different speeds based on demand. This means for some products in some regions, we've reached the end of the reservation queue and have started inviting folks from the waitlist.”

That means users who reserved the Steam Machine but haven’t had the chance to buy them yet can expect to get their hands on one before the new year. While this means that all the original reservations will finally be fulfilled in 2026, it doesn’t offer much comfort for those who want to have a new gaming PC console just in time for the holiday season.

Valve lets you 3D-print your own Steam Machine case, face plates

Users who haven’t received their Steam Machine yet (or even those who didn’t order one) could 3D-print their own shell for the console in the meantime. That’s because the company just released the CAD files for the “Gabe Cube” on GitHub in STP format. This lets you create your own face plates and case based on Valve’s own designs, ensuring that the cases or skins you create yourself will exactly match the PC console.

Jsaux Gaming Steam Machine covers

(Image credit: Jsaux Gaming)

We’ve already seen some manufacturers offer custom plates and skins for the Steam Machine, although Dbrand had to drop the Portal 2-inspired Companion Cube after Valve threatened to sue the company for copyright infringement. With the release of these files, you can 3D-print or create your own skin (even your own Companion Cube skin) without worrying about getting sued as long as you follow the CC BY-NC-SA 4.0 license that Valve put on the PC console. ‘

If you’re brave enough, you can even make your own case for the Steam Machine and transfer the innards to that custom one you build. Pierre-Loup Griffais, one of the Valve engineers who gave us in-depth details on the Steam Machine, warned that doing so might void your warranty, though.

“Your Steam Machine is yours, and you have the right to do with it what you want,” Griffais said on the GitHub post. “That said, we highly recommend you leave it to professionals. Any damage you do will not be covered by your warranty – but more importantly, you might break your Steam Machine, or even get hurt! Be careful, and have fun.”

Teacher arrested for clapping in support of opposition at an AI data center meeting — gigawatt-scale project gets approved anyway despite community resistance

Police from Emporia, Kansas, arrested a teacher for applauding a speaker who was speaking out against a proposed zoning change to accommodate a planned data center in the area. According to 12 News, the police dragged 37-year-old Lux Claridge from the community meeting and charged him with disorderly conduct and interference with law enforcement. The commissioners had reportedly repeatedly warned against clapping and making other reactions while someone was speaking.

A video circulating on the internet shows Claridge clapping five times after a speaker closed their statement. We can hear in the clip below someone saying, “Ask him to leave,” followed by a second voice confirming, “Can I?” The voice then asked a police officer, “Chief? Will you ask-will you take the next person out that claps or anything, please? Thank you.”

The cops then approached Claridge, who said, “I have a right to speak.” The police were nonetheless insistent, which is when he said, “Drag me out.” Four officers then proceeded to cuff the teacher and hoisted him off to Lyon County Jail.

The data center’s critics warned against the project, saying that it could strain the local power supply and negatively impact the residents’ water quality. Their concerns are not without merit, as AI data centers have caused a massive 76% increase in electricity costs in the U.S.’s largest power region, while a Meta site is accused of muddying an entire town’s water supply.

Despite that, Emporia, located about 100 miles Southwest of Kansas City, approved the zoning changes needed for the Flint Hills Digital Campus project to move forward with the permitting process. This does not mean that the data center will immediately start construction, though, as it probably still needs to go through several more steps before it can break ground.

This isn’t the first time that a data center dissenter was hauled off to jail for reasonably pushing back against the said project. An Oklahoma farmer was arrested back in April for trespassing after going a few seconds over his allotted time and handing paperwork to the commissioners. Pushback against projects like these have been happening across the country, with several jurisdictions like Seattle and New York State enacting one-year moratoriums to study the potential effects of these infrastructure projects and how they could be mitigated.

President Donald Trump created the “ratepayer protection pledge” to force AI hyperscalers to “pay their own way” when it comes to electricity costs. He has even expanded this recently to include states and utility companies, with 23 governors and 187 firms signing up on the promise. Unfortunately, this is just a piece of paper and has no legal or regulatory power over the signees, with tech companies pushing back against a California bill that wants to turn this into law.

At the moment, Oregon is the only state that has passed and enacted a law that forces electricity consumers that used 20 MW or more to cover their fair share. Because of this, Portland General Electric, the state’s biggest power generator, has increased data center bills by 30% while cutting residential electricity costs by 1.3%.

Claridge is currently out on bail and is awaiting his hearing in September. "I'm glad to be out, but this is an inconvenience, really," Claridge said to local media. "It's not really deterring me from speaking out or, I guess, clapping."

'It sounds like someone set up a vacuum, like in your living room': Michigan residents sue AI data center emitting noise 24/7 — company fined for industrial noise ordinance violations, offers to buy homes from residents

Residents of Dowagiac, Michigan, just filed a lawsuit against a data center that allegedly generates a high-pitched whining sound — and has done so 24/7 for the past two years.

The data center, which is owned by Alliance Cloud Services LLC, a subsidiary of Hyperscale Data, used to be an industrial building that sat behind a row of pine trees across the street from the most affected residents, according to ABC-affiliateWXYZ. The site started development in 2018 and was eventually turned into a cryptocurrency mining center in 2021. But in 2024, something changed drastically when the building started emitting noise pollution around the clock. Residents say it sounds like a vacuum cleaner in their living room, and the company has offered to buy up homes from unhappy residents.

“It sounds like someone set up a vacuum, like in your living room. And the vacuum is just... that thing needs to be cleaned ... the filter is clogged up, so it’s a high-pitch whining. And they just left it on and walked out," said Lindy Valenzuela, one of the residents living across from the data center. Billy Finn, who also lived nearby, added, “You’ve seen movies and stuff where they have somebody in a cell torturing them with sound. And that’s basically what it is."

Dowagiac has recently instituted an industrial noise ordinance, with a daytime limit of 65dB during the day and 55dB at night, and it has fined the data center for violations. However, Hyperscale Data is challenging the city’s readings and methodology. The company said that it’s planning to expand its operations in the footprint in the area, but the city said that it hasn’t received any permit applications.

It’s a high-pitch whining. And they just left it on and walked out

Area resident Lindy Valenzuela

Hyperscale Data CEO William Horne told the residents directly in a special council meeting that the site is pivoting away from cryptocurrency operations towards AI computing and advanced robotics, and that it’s spending $100 million to achieve this. It has also bought acres of adjacent properties for use as a natural buffer to reduce the noise that affects residents in the future, alongside other efforts that will reduce sound levels. "If they still aren't happy, and feel that their home isn't enjoyable, then we'll buy their property from them,” Horne said.

Still, this statement did not sit well with the affected residents. One of them said that their family has been living in the area for close to a hundred years, with their friends and support system, while another has a 17-month-old baby and another on the way, meaning moving for them is going to be difficult, if not impossible. Because of this, the residents asked the CEO why they didn’t act on the complaints as soon as they started and accused the company of not being a good neighbor.

This isn’t the first noise pollution lawsuit that a data center is facing in the country. A Microsoft data center is facing a similar class-action lawsuit in Wisconsin from residents who live within 1.5 miles of the facility. One non-profit organization also said that inaudible vibrations, called infrasound, that these industrial sites emit can be heard and felt for hundreds of feet in surrounding areas and could potentially have negative health effects on anyone who can feel it.

Open-source 3D-printed portable MRI machine built for under $70,000 — DIY medical equipment costs less than 7% of a full-sized MRI machine’s $1.1 million starting price

MRI machines are life-saving medical devices that can let doctors and radiologists diagnose various critical conditions, but they’re also insanely expensive. Brand-new models start at $1.1 million and could go as high as $3 million per unit or more. The Open Source Imaging Initiative recognized this limitation and has been working on the open-source OSI2 ONE MRI scanner, which had already been replicated multiple times globally. However, this portable device, which has a 3D-printed core, has a limited field strength of just 50mT (compared to the 1.5T to 3T used by full-sized units). This gave them lower spatial resolution and lower signal-to-noise ratio, but tech analyst Brian Roemmele said on X that AI can overcome this and make it usable for medical diagnoses.

BOOM! OPEN SOURCE MRI!You can now 3D-print the core of an MRI scanner.A machine that hospitals pay $1.1 million to $3.4 million for has been broken open. The OSI² ONE and its educational siblings deliver real images of heads and limbs for a fraction of the cost, using a… pic.twitter.com/BeONbIyX5oJuly 25, 2026

“Low-field MRI has historically been limited by lower signal-to-noise and greater field inhomogeneity. That is exactly the regime where modern AI thrives,” Roemmele wrote on the social media platform. “Image reconstruction becomes dramatically better when deep networks trained on high-field data or physics-informed models denoise, correct for inhomogeneity, and push resolution beyond the raw acquisition limits. Real-time sequence adaptation can adjust gradients and RF pulses on the fly as the AI monitors signal quality.”

Note that this isn’t just a general run-of-the-mill AI that everyone uses but a specially trained model on high-field MRI (1.5T to 8T) data or using the actual physics of the MRI machine so that it can create a more accurate picture. Scientists have already been using this technique for years, with some researchers training an AI model on 1.6 million brain scans to make it more accurate in detecting dementia. If an institution does not have access to anonymized patient data used to train the specialized AI, it can rely on synthetic data generation because of the open-source nature of the OSI2 ONE MRI scanner. Since all the information about the machine is publicly available, researchers could use this instead to build a physics model that the AI model can use.

Some people commented, saying that this won’t work in the highly regulated medical environments usually found in first-world countries. Nevertheless, Roemmele said, “No one can stop us from building in garages.” It also seems to be targeted for regions that have low access to technologies like these or do not have the financial capacity to purchase and maintain a full-sized device (even refurbished MRI machine units start at $100,000, and you also have to spend more to set up the specialized room that will house it).

While a portable MRI scanner like the OSI2 ONE will never have the resolution of the expensive, full-sized machines, it’s arguably better to have something that doctors can use for diagnosis without costing millions of dollars if the specialized AI model turns out to be effective and accurate. With that, even less wealthy hospitals and clinics could have access to this imaging device and save more lives. It also shows how the medical industry and even patients use AI to save on costs.

Minecraft system requirements raised for the first time in 17 years — Microsoft now recommends 16GB of RAM and a 2020s or newer CPU to run the Java Edition

Microsoft announced that it’s increasing Minecraft’s minimum and recommended system requirements for the first time in 17 years. According to the company’s blog post, Minecraft: Java Edition will get a spec bump to ensure that the game runs smoothly today and in the future. While it’s understandable that the game’s developers would want to increase the performance of the hardware that the title runs on to implement more advanced features, the new requirements are significantly higher than the previous minimum specification. This could negatively affect players on older hardware that barely hits the minimum requirements, who would have no choice but to upgrade their PCs at a time when RAM prices are at a record high.

Java Edition Minimum (Old)

Java Edition Minimum (New)

Bedrock Edition Minimum

Java Edition Recommended (Old)

Java Edition Recommended (New)

Bedrock Edition Recommended

OS

Windows 7, macOS 10.14.5 Mojave, or later

Windows 10 64-Bit, Windows on ARM, macOS 12+, or Linux 64-bit

Windows 10 19041.0 or higher

Windows 10, macOS 10.14.5 Mojave, or later

Windows 11 64-bit, macOS 14+, or Linux 64-bit

Windows 10 19041.0 or higher

CPU

Intel Core i3-3210 / AMD A8-8600 / Apple M1

Intel Core i3-10100 / AMD Ryzen 3 3100 / Qualcomm Snapdragon X / Apple M1

Intel Celeron J4105 / AMD FX-4100

Intel Core i5-4690 / AMD A10-7800 / Apple M1

Intel Core i5-12400 / AMD Ryzen 5 5600 / Apple M2 Pro

Intel i7-6500U / AMD A8-6800K

GPU

Intel HD Graphics 4000 / AMD Radeon R5

Nvidia GeForce GTX 950 / AMD Radeon RX 460 / Intel Arc A310 / Intel i5-6400 (iGPU)

Intel HD Graphics 4000 / AMD Radeon R5

Nvidia GeForce 700 series / AMD Radeon RX 200 series

Nvidia GeForce RTX 2060 / AMD Radeon RX 5600 XT / Intel Arc A580

Nvidia GeForce 940M / Radeon HD 8570D

Memory

2GB

8GB (discrete GPU) / 12GB (iGPU)

4GB

4GB

16GB

8GB

The new minimum specifications are quite reasonable, with the recommended specs falling squarely within the performance of the most common hardware in June’s Steam Hardware Survey (which also indicates that AMD now has more than 45% market share compared to Intel). If your system used to be at or higher than Minecraft: Java Edition’s previously recommended specifications, but no longer hits the current minimum requirements, you can switch over to the Bedrock Edition to continue gaming, although you might have to forgo some of your favorite mods.

If you’re running the bare minimum hardware to play Minecraft, Microsoft said that you could still possibly launch the game, although it warned that you might run into some issues. “These updated recommended system requirements won’t stop you from playing Minecraft: Java Edition today. If your computer falls below the new minimum requirements, Java Edition should still launch,” the company said in the Minecraft blog. “However, its performance and visual quality are no longer guaranteed on below-spec hardware, and it may struggle or fail to launch Java Edition in the future – especially as we transition away from OpenGL and towards Vulkan. We will keep players informed of these changes, especially changes that will sunset hardware that previously supported Minecraft: Java Edition.”

This means that you’ll have to spend some money to upgrade your system to just to continue playing your favorite game. You don’t have to spend thousands of dollars to get a new PC or join a giveaway to be able to play, though. If you know what you’re looking for, you can plausibly buy a used gaming laptop or desktop PC for around $350 to $500 — that should give you about a decade or more to enjoy the game if Microsoft keeps its spec upgrade cadence of 17 years for future versions of Minecraft.

Security flaw in Vatican’s ‘Click to Pray’ app leaves over 700,000 global users exposed — app has been leaking user data for over six months and still does

Click To Pray, the official prayer app of the Pope’s Worldwide Prayer Network, was found to have zero security by a security researcher. According to BobDaHacker, they discovered in January 2026 that the Vatican-linked app had zero security, allowing anyone to access user data through the API endpoint by simply typing in user IDs. They emailed nine individuals about the vulnerabilities as soon as they discovered them but received no responses and saw no changes for six months.

The information that anyone could get from the Click To Pray app’s database included first and last names, email addresses, and birthdates, among other information. You may not think this is much, but getting names and email addresses is more than enough for bad actors to start sending phishing emails to vulnerable users. BobDaHacker also pointed out that most of the app's users are likely older people who aren’t tech-savvy, so any enterprising scammer could tap into the app for a literal treasure trove of email addresses.

It was also easy to get the complete list automatically. The user ID assigned to new accounts is sequential, and since there’s no rate limiting for the API, all it takes is one GET request per user to capture all that information. Aside from this, the validation_hash used to verify the validity of an account signup is also stored in the clear, meaning anyone with access to the API can verify an account by opening their inbox. The email also had security issues that make it look like a phishing email, even if it’s legitimate.

You may think that a prayer app shouldn’t be much of a target for cybercriminals, especially as this has a small install base compared to the 16 billion accounts exposed in one of the largest data breaches in history. But the fact that it had almost 720,000 accounts as of July 2026 meant that there’s a lot of possible targets within that database. Even if just 1% of these users respond to an enterprising cybercriminal who harvested their email addresses from the app, that’s more than 7,000 different individuals who could lose money because of this leak.

BobDaHacker waited for six months for a response, but, unfortunately, no one related to the app responded to their concerns. Because of this, they contacted Nate Neslon, a security journalist for Dark Reading (who similarly received crickets after contacting them), who published a story about it. It was only after the news went live that the app’s security lapses were fixed, even if BobDaHacker wasn’t, at the very least, acknowledged by the makers of the app. Hopefully, no other hackers were aware of the weaknesses of the Click To Pray app.

'RAM Machine' case probably costs more than the entire build — Nvidia RTX 5060, Core Ultra 5 CPU, and 32GB DDR5-8200 RAM are hiding inside

u/DaKrazyKid went on Reddit to exhibit their mini-ITX gaming PC build dubbed "RAM Machine," which features 36 RAM sticks. The OP said the Steam Machine, with its paltry 16GB of RAM, inspired the build, which has 16 RGB RAM sticks controlled through SignalRGB to give you all that RGB goodness, and they’re giving it away to one lucky commenter in the r/PcBuild subreddit. It’s unclear if the Redditor is affiliated with SignalRGB, although the giveaway seems to be sponsored by the company because of the disclaimer that excludes employees, affiliates, and subsidiaries of SignalRGB, their immediate family members, and persons living in the same household from the sweepstakes.

Although the PC itself isn’t a top-of-the-line unit, it’s a decent build that offers better specifications than the Steam Machine. The RAM Machine comes with an Intel Core Ultra 5 CPU, a single-fan RTX 5060 GPU, 32GB of Patriot DDR5-8200 RAM, and a 2TB Patriot SSD, all attached to a B860-I motherboard and powered by a 750-watt PSU. While this might not give you native 4K gaming, this is more than enough for 1080p gaming and could even handle some 1440p titles. We checked the cost of this mini-PC on PCPartPicker, and a similarly specced unit costs more than $1,500. This makes it 50% more expensive than the Steam Machine and quite a valuable giveaway.

RAM Machine Giveaway - To enter this giveaway, simply leave a comment. from r/PcBuild

This isn’t the first time that SignalRGB has sponsored a giveaway of a wild-looking PC if the company indeed sponsored this. Just last year, it turned a microwave into an all-in-one PC and gave it away to one lucky winner. It also had another raffle in 2023, this time a powerful gaming PC built inside a Starfield control panel case. The biggest thing these three PCs have in common, of course, is that they use SignalRGB to control the RGB lights in these systems. Although this is a free app you can use to control the RGB lights on your computer, no matter what brand they’re from, it also offers a Pro subscription which costs $5.99 a month or $45 a year. This tier gives you more advanced features like cooling control, system monitoring, macros, and more.

If you want to join the giveaway, all you need to do is head to the Reddit post and leave a comment. Don’t get your hopes up, though, as it already has more than 78,000 comments at the time of writing.

'When will the EA greed end': Fans vent their fury as company announces $150 version of FC 27 — annual game release comes in three editions, but top-tier option is 50% more expensive than GTA VI Ultimate

EA just announced FC 27, the latest release of its soccer franchise that it releases annually, and many players were shocked to learn that it came with a $149.99 Ultimate Plus Edition. This led to many complaints, with some comparing it to GTA VI Ultimate, which comes with extra side missions, activities, vehicles, guns, outfits, and other cosmetics, for just $99.99. However, it should be noted that FC 27 is available in three tiers — the Standard Edition for just $69.99, the Ultimate Edition, which costs $99.99, and the Ultimate Plus Edition, with its shocking $149.99 price tag.

Despite the availability of the base game at its usual price, the cost of the top-tier edition has caught the ire of many gamers. One user commented on X that they’re willing to “pay $200 for a game that’ll last 15-20 years,” while another said that EA wants “€150 for a roster update and some blue points you’ll spend on a player you’ll never use.” However, others pointed out that the $150 version is “for people who not only play it but spend money on it; 10,000 FC points is about £70/€82/$93.”

EA is getting huge backlash after officially introduced the EA Sports FC 27 Ultimate Plus Edition, priced at €149.99, the most expensive EA game edition to date. It costs €50 more than GTA 6’s Ultimate Edition at €99.99. It includes up to 7 days of early access and 10,000… pic.twitter.com/NZoqT1Jm65July 24, 2026

The FC franchise (previously known as FIFA) has been around for over 30 years now, with EA releasing a new title annually since 1994. That means fans have to pay at least $70 every year if they want to stay updated with the latest team rosters. This might be too much for some people, but hardcore fans seem not to mind spending that amount just to be able to have their favorite players on their team. In fact, they might even consider the $149.99 Ultimate Plus Edition good value as the $80 premium comes with 10,000 FC Points spread out over five months, five seasons of Premium Pass, and several other goodies. By comparison, FC 26 lists 12,000 FC Points for $99.99.

Even though gamers get additional value from the most expensive edition of FC 27, it still did not sit well with some people. Aside from that, they’re comparing it to the GTA franchise, with Rockstar continuously dropping updates to GTA Online for more than a decade, even for those who only purchased the game once. But even though EA did not change the price of the base game (and even the mid-tier Ultimate Edition), the fact that they’re asking more than double the price of the cheapest option is what caught the ire of the public, especially as the current FC 26 has mixed reviews on Steam.

President Trump expands AI data center ‘ratepayer protection pledge’ to include state governors and utility companies — White House claims this will make electricity more affordable

23 state governors and 187 utility companies and data center developers have signed President Donald Trump’s “ratepayer protection pledge,” which is Washington’s way of trying to control spiraling electricity costs driven by the massive power demand of AI data centers. According to The Associated Press, some of the signers include utility companies NextEra Energy, Duke Energy, American Electric Power, Southern Co., and Pacific Gas & Electric, and data center developers Equinix, Digital Realty, and Prologis.

Trump first revealed this promise in late February during the State of the Union address and then hosted some of the biggest AI hyperscalers — including Meta, Amazon, and OpenAI — in the White House a week later to force them to spend on their own power requirements. This was supposed to help bring electricity costs down, with Energy Secretary Christ Wright saying back in March that it “will deliver more affordable, reliable, and secure energy for the American people.” The president repeated this promise during the event, saying, “Electricity bills for American families will actually come down. They’re going to have a lot of electricity left over, and they’ll put that into the grid.”

Unfortunately, the March promise had little to no effect on electricity rates across the country at the moment. Despite the White House’s promises that the pledge would lower utility bills, PJM Interconnection, the nation’s largest power grid operator, slapped Maryland with a $2-billion bill for upgrading its grid to accommodate out-of-state AI data centers. Monitoring Analytics, an independent watchdog monitoring PJM Interconnection, also said that the 75.5% increase in power costs in the U.S.’s largest power region has been directly caused by data centers.

It’s unclear if these cost increases are the long-term effects of the AI build out even before the White House pledge, but it seems the administration is doubling down on it by asking states, utility companies, and data center developers to commit to it, too. Trump has been pushing for the acceleration of the adoption of AI tools and the infrastructure needed to support them, believing that it needs to win in the “AI race” to maintain its global supremacy, especially as China is neck-and-neck with the U.S. when it comes to the technology.

However, the American public is pushing back against these developments, especially as issues impacting electricity costs, water quality, noise pollution, and more that were caused by data centers are widely reported. It has gotten to the point that several jurisdictions have applied temporary bans on data center developments, including Seattle (which plays host to Amazon and Microsoft) and the state of New York. These developments threaten to derail the current administration’s AI policy, which has ordered grid operators to expedite AI data center applications.

The ratepayer protection pledge will supposedly allow the U.S. to have its data centers without punishing the common American with excessive electricity cost increases, but its critics say that it’s just a promise and cannot be legally enforced. The Associated Press says that California is trying to pass legislation that will codify these promises into law.

Oregon is the only state at the moment to have passed a law that forces developments that use more than 20 megawatts of power to pay their fair share. The POWER Act, which was passed in April 2025 — almost a full year before Trump announced the ratepayer protection pledge — forces the power bills of large electricity consumers to “reflect the true costs of their electric service.” Because of this, Portland General Electric (PGE), the state’s largest power supplier, has increased the data center power bills by 30% while also cutting residential costs by 1.3%.

It’s unclear if any of the states that have signed the pledge have similar legislation underway, or what steps the data center developers will take to follow through on their promises. Still, the U.S. president is adamant that states should support data center development within their borders. “You have to convince your community. You can’t fight it. You have to go with it,” Trump said. “If you don’t take all that money, somebody else is going to take it. You might as well do it yourselves.”

AI memory shortage is now increasing the price of cars — GM warns of vast cost increases, BYD hikes driver assistance prices 20%

While PC builders, enthusiasts, and gamers are some of the most heavily affected by the AI-driven memory chip shortage, experts have also been warning that this will eventually hit the automotive sector. It seems that their fears have come true, as Nikkei Asia reports that two major automakers are increasing their prices precisely for this reason. General Motors said that it expects new vehicle prices to increase by 0.3% this year, changing its previous projection of vehicle costs to remain the same or even slightly more affordable. On the other side of the world, Chinese automotive giant BYD has also raised the prices of the driver assistance features by 20%, which it sells separately from its models. South Korea’s Hyundai also called on domestic chip manufacturers to strengthen the local supply chain.

GM Chief Financial Officer Paul Jacobson said during the carmaker’s earnings call that GM expects its costs to increase by $1.5 to $2 billion, which is mostly driven by increasing prices of vehicle components, especially DRAM. While most people wouldn’t equate cars with memory chips, the increasing number of features and technologies that buyers expect from new models means that engineers and designers must add more memory compared to models from the past.

Micron said in 2023 that the average vehicle used 90GB of DRAM and NAND, and it’s expecting this combined requirement to jump to 278GB by 2026, with high-end models requiring up to 2TB. A British OEM broke down the memory requirements of vehicles released this year — infotainment systems require between 4GB and 16GB, ADAS and safety systems need 8GB to 32GB, while centralized systems often have a minimum requirement of 16GB and could go as high as 64GB or more. And as AI assistants start becoming available on cars, these systems will require at least 256GB of memory. In fact, Micron predicts that cars with level 4 autonomy will need at least 300GB of RAM, as they’re essentially supercomputers on wheels.

Note that automotive memory isn’t just any high-end chip that you can get from wafer production lines. Instead, these are specialized parts that take months or years to be validated for vehicle use. That’s because they must withstand various environmental factors that cars go through, from weather and constant road vibrations to extreme heat and cold.

All this means that the current memory chip shortage will have an outsize effect on the automotive industry and push prices even higher. This is bad news for the average car buyer, who is already facing record-high prices for new vehicles. And if the chip shortages continue, we might experience delays in vehicle deliveries and a lack of availability worse than what we experienced in 2021 during the height of port closures due to the pandemic.

142 AI data center protests staged in 42 states as public opposition increases — organizers brand 'unaccountable' buildouts as an 'unacceptable infringement on our liberty'

More than 70% of Americans now oppose data centers, which has resulted in bipartisan moves to block these projects. This pushback isn’t limited to just a few people or towns, either. In fact, a coordinated protest was organized just this weekend, happening in 142 different venues across 42 states, and is the first one to happen simultaneously across the U.S. Forbes reports that this makes community consent scarcer than the chips and other equipment and resources needed to build and run these sites. As Reuters notes, the organisers behind the protests have branded the "unaccountable" data center buildout as an "unacceptable infringement on our liberty."

Data centers have faced shortages of various kinds in the past few years — it began with GPU supply, then evolved into a memory chip bottleneck. Alongside that, there’s also the limited supply of electricity from the grid, as well as the related power infrastructure. But the one thing that many data center developers did not count on was the lack of public support.

This resistance isn’t limited to the streets, as bipartisan political moves have resulted in everything from delays in various projects to statewide bans. More than 69 jurisdictions have already imposed data center bans, with Seattle (home to the headquarters of AI tech giants Microsoft and Amazon) and the state of New York passing one-year moratoriums. Because of this, more than $130 billion worth of data centers have already been delayed in just the first quarter of 2026.

Developers have employed various techniques to get around these bans and opposition. This includes picking sites in rural areas with fewer people (thus less resistance), bringing their own electricity, or claiming that their data centers use less water than lawn care and gardening. But despite all their promises of jobs, investment, and tax revenue, the American public has grown wary of suffering from the consequences of having a data center as a neighbor. This is especially true after reports of increased utility rates, water quality issues, noise pollution problems, and more have widely circulated around the country.

Because of this, any data center project must take the community into account. It can no longer just rely on a friendly town council for approval, especially as the voting public has proven that they are willing to take steps to oust officials that they feel do not represent them. While many know that the U.S. needs data centers to compete in the AI race, they don’t want this to happen at the expense of their quality of life. And while investors can just keep on pouring money into purchasing chips and upgrading infrastructure, they cannot just buy off the community — instead, they need a solid plan that stands up to scrutiny and opposition and accounts for the months or even years it will take for permits to go through and get approved.

Jensen Huang argues American companies should be allowed to use Chinese AI models — Nvidia CEO says backdoors connected to China are misconceptions

Nvidia CEO Jensen Huang thinks that American companies should be allowed to use Chinese AI models, even as Washington is trying to ban them. When Axios co-founder Mike Allen asked Huang in an interview if Americans companies should be allowed to use Chinese AI models, Huang responded with “absolutely.” The answer comes right after Chinese firm Moonshot AI released a 2.8T open-weight model called Kimi K3, which — although it isn’t as powerful as frontier models like Fable 5 — is comparable to GPT 5.5 and Claude Opus 4.8 while costing just a third of these models.

One of the biggest concerns of U.S. leaders have is that these AI models might come with vulnerabilities that the Chinese government can use to attack American interests, but Huang said that this is an incorrect assumption. “There is a misconception that somehow there are backdoors that are somehow connected to China in some way,” said the Nvidia chief. “You download the models, you can fine-tune it, you can enhance it, you can guardrail it as you desire.”

Huang shares the same sentiments about American AI models. Just last month, the U.S. enforced an export restriction on Anthropic’s Mythos and Fable 5, citing security threats — although access was eventually restored after its developer placed a filter to block these tools from identifying software vulnerabilities. OpenAI’s ChatGPT-5.6 received the same treatment, and Washington warned the firm that it should not release its latest model without getting the green light from the government. Huant argues that, instead of restricting access to these powerful models at launch, AI firms should make their models available to all and make them more secure through rapid testing and fixes.

But even as he advocated the need for everyone to have access to closed models, Jensen also noted that various industries, such as the sciences and cybersecurity, need open models as well. He claims that these models make AI more secure, as other people can inspect them to look for weaknesses and fix them as required.

“If everything just becomes one single model, one single point of attack, one single source of failure, I think the world is much, much more vulnerable,” Huang said.

As for the market’s negative reaction every time cheaper, open-weight models become available, the Nvidia CEO says that investors misunderstand their impact. Huang said that this happened when DeepSeek arrived for the first time, and it’s happening again with the arrival of Kimi. He says that these open models, which cost less to run, will encourage more people to use AI. So instead of cutting data center demand, these cheaper, more efficient models are actually good for the industry in general because they will drive demand. (And with higher demand, there’s more incentive to build data centers and buy AI GPUs, which is ultimately good for Nvidia.)

AI tech companies have ‘hidden debt’ worth around $1.65 trillion, report claims — amount is 122% of debt reflected on the balance sheets of Alphabet, Amazon, Meta, Microsoft, and Oracle

Five U.S. tech giants heavily invested in AI and its related infrastructure reportedly have an estimated $1.65 trillion in hidden debt, with the figures annotated in their quarterly financial statements instead of being listed in their balance sheets. According to Nikkei Asia, this is higher than the $1.35 trillion officially listed, meaning investors could be caught unaware once the hidden figures come to light.

The publication says that Meta has a high off-balance-sheet-to-recorded-debt ratio, with the company owing $420 billion in unlisted debts compared to the $140 billion written on the balance sheet. Oracle purportedly also has a massive $273.3 billion of hidden debt, which is a 2,900% jump from the hidden debt it had from 2022.

This may sound strange, but it’s actually an accepted accounting practice. The “hidden debt” stems from long-term contracts that have been signed but have not come into force yet, which, Nikkei says, is mostly related to the billions of dollars promised to data center operators. The AI race has got many hyperscalers signing contracts and agreements with data center operators, saying that they will pay for the compute they generate once their project goes online.

While any institution promising to pay any amount of money for services or goods delivered is obliged to list them as a liability, the fact that these data centers haven’t started operations means that these agreements are off-the-books at the moment. But when these projects come online, the contracts that the tech giants have signed will come into force, and they’ll have to pay for the compute that these sites will deliver, no matter if there is demand or not.

Nevertheless, these tech companies aren’t just pouring money into future contracts just for the sake of it. Alphabet, Amazon, and Microsoft reportedly have a cloud service backlog worth $1.45 trillion, meaning these are services yet to be rendered and paid. Amazon Web Services CEO Matt Garman also told the publication that the investments that the company is getting into are “not speculative.”

While this may seem like a good way to secure capacity — sign customer contracts that guarantee demand and then enter into long-term agreements with data centers to get the compute needed to deliver the services- it opens these tech giants to massive amounts of risk. That’s because if the demand fails to materialize, then they’d be left paying for excess compute without having any customers to sell them to. What’s more alarming is that Nikkei says that these investment expenditures are exceeding their earnings, meaning these big tech companies are increasingly relying on corporate bonds and new shares to fund them.

Even though demand for AI compute is increasing, it’s still a relatively new and unproven technology, with many experts saying that it should benefit more people to avoid a bubble. The cost of using AI for nearly everything, called “tokenmaxxing,” has also caught some companies by surprise, with agentic AI eating up annual AI budgets in a matter of weeks. Because of this, some companies are reducing their use of AI or are switching to more affordable models from China. This uncertainty, paired with the way tech companies “hide” these liabilities, is quite concerning, as they would appear to have less long-term obligations than they actually do.

This isn’t the first time that an industry giant has used similar accounting techniques. The publication cited Enron’s 2001 collapse, which was due to the company hiding its troubled assets through special purpose entities and marking unrealized gains from trading contracts into its current income statements. While the tech giants are not hiding underperforming assets off their balance sheets and committing fraud, they’re still using a similar mechanism to list their upcoming obligations. Although these are technically not debt, they still behave like one, and the way they’re reported is what’s concerning some experts.

❌