Y Combinator's newest Demo Day featured a batch skewed heavily toward deep tech, with startups like Atomarine pitching nuclear-powered floating data centers and Dipole Labs building optical networking hardware to cut power waste in AI clusters. TechCrunch surveyed early-stage investors who named nine companies that got flagged repeatedly as the standouts of the cohort. Investors noted the technology felt futuristic, but valuations across the batch were more restrained compared to recent quarters.
AI companies are pouring billions into massive data centers and power plants to support 'agents'—AI systems that autonomously execute multi-step tasks rather than simply answering questions. Unlike a single chatbot query, an agent can generate hundreds of self-prompts to complete complex jobs, such as building an entire website over several hours. OpenAI recently touted a swarm of over 10,000 agents exchanging 2.7 million messages to tackle a longstanding math problem, though mathematicians have disputed the significance of that result.
A group of former EPA officials, working through the Environmental Protection Network, released a report identifying 30 federal actions since January 2025 that they say weaken environmental protections to speed AI data center construction. They argue this has pushed data centers toward dirtier power sources, worsening pollution exposure even for people who don't live near the facilities, and are calling on Trump to adopt a 'Data Center Health Protection Pledge.'
Insurers and reinsurers are exploring catastrophe bonds to help cover the massive, geographically concentrated value of hyperscale data centers, many of which sit in hurricane- and flood-prone regions. Industry experts told CNBC that while no dedicated data center cat bond has yet been issued, activity is building one step upstream through reinsurance vehicles like quota shares and sidecars as firms work out pricing and capacity.
Oracle has requested proposals for 2 gigawatts of renewable energy in New Mexico as it faces local protests and legal challenges over the $165 billion Project Jupiter data center it's building with OpenAI in Santa Teresa. The facility, part of the Stargate AI infrastructure initiative, will still run on natural gas-powered fuel cells rather than direct renewable power, and analysts note the renewable investment is a 'synthetic' match rather than a direct power source for the site.
The EPA is proposing to eliminate a federal rule requiring states to notify the public and accept comments before approving air-pollution permits for industrial facilities, including data centers and the power plants built to supply them. A separate EPA proposal from last month would also allow developers to begin construction before permits are finalized. These changes come as data centers expand rapidly across the rural South, disproportionately affecting Black communities.
Nscale, a UK-based AI data center company, has named Fidji Simo, who recently departed OpenAI's No. 2 role, to its board of directors. She joins other prominent tech figures including Sheryl Sandberg, Susan Decker and Nick Clegg as the company prepares for a possible public listing this fall.
Oracle reported fiscal first-quarter revenue of $19.35 billion, topping analyst expectations, with net income climbing 60% to $4.7 billion. The gains were driven by a 62% jump in cloud revenue, including a 121% surge in cloud infrastructure sales, prompting shares to rise more than 6% in premarket trading.
Fidji Simo, a former OpenAI executive, has taken a seat on the board of Nscale, a startup that builds data centers for AI workloads and has raised billions in funding. The move comes as Nscale reportedly prepares for an eventual public listing.
Oracle reported fiscal first-quarter results that topped Wall Street forecasts, with adjusted earnings of $1.92 per share and revenue of $19.35 billion, both above LSEG estimates. Revenue climbed nearly 30% year over year, driven largely by rapid growth in cloud infrastructure as Oracle pushes deeper into AI-related data center buildouts. The company raised its long-term outlook, now projecting $8.10 in adjusted earnings per share on at least $90 billion in revenue for fiscal 2027.
Commentators aligned with Steve Bannon's political circle, including Joe Allen, have started describing artificial intelligence systems built in data centers as 'algorithmic immigrants,' framing AI development as akin to immigration that threatens American workers and culture. The phrase is being used to fold anti-AI sentiment into existing far-right anti-immigration narratives.
Ajinomoto build-up film, the insulating material used in nearly every high-end CPU, GPU, and AI accelerator package, is supplied almost entirely by one Japanese company that controls over 95% of the global market. As AI data centers scale into the gigawatt era with millions of accelerators needed, this narrow supply chain of substrate makers and a single film source is becoming a critical constraint on chip production.
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