A new study estimates that AI systems in 2025 consumed as much electricity as New York City emits in carbon pollution and used hundreds of billions of liters of water, driven largely by power-hungry data centers and cooling needs. Researchers say the real impact is likely higher due to poor transparency from tech companies about AI-specific energy and water use. "There's no way to put an extremely accurate number on this, but it's going to be really big regardless... In the end, everyone is paying the price for this," says Alex de Vries-Gao, a PhD candidate at the VU Amsterdam Institute for Environmental Studies who published his paper today in the journal Patterns. The Verge reports: To crunch these numbers, de Vries-Gao built on earlier research that found that power demand for AI globally could reach 23GW this year -- surpassing the amount of electricity used for Bitcoin mining in 2024. While many tech companies divulge total numbers for their carbon emissions and direct water use in annual sustainability reports, they don't typically break those numbers down to show how many resources AI consumes. De Vries-Gao found a work-around by using analyst estimates, companies' earnings calls, and other publicly available information to gauge hardware production for AI and how much energy that hardware likely uses. Once he figured out how much electricity these AI systems would likely consume, he could use that to forecast the amount of planet-heating pollution that would likely create. That came out to between 32.6 and 79.7 million tons annually. For comparison, New York City emits around 50 million tons of carbon dioxide annually. Data centers can also be big water guzzlers, an issue that's similarly tied to their electricity use. Water is used in cooling systems for data centers to keep servers from overheating. Power plants also demand significant amounts of water needed to cool equipment and turn turbines using steam, which makes up a majority of a data center's water footprint. The push to build new data centers for generative AI has also fueled plans to build more power plants, which in turn use more water and (and create more greenhouse gas pollution if they burn fossil fuels). AI could use between 312.5 and 764.6 billion liters of water this year, according to de Vries-Gao. That reaches even higher than a previous study conducted in 2023 that estimates that water use could be as much as 600 billion liters in 2027. "I think that's the biggest surprise," says Shaolei Ren, one of the authors of that 2023 study and an associate professor of electrical and computer engineering at the University of California, Riverside. "[de Vries-Gao's] paper is really timely... especially as we are seeing increasingly polarized views about AI and water," Ren adds. Even with the higher projection for water use, Ren says de Vries-Gao's analysis is "really conservative" because it only captures the environmental effects of operating AI equipment -- excluding the additional effects that accumulate along the supply chain and at the end of a device's life.

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Anthropic let its Claude AI run a vending machine in the Wall Street Journal newsroom for three weeks as part of an internal stress test called Project Vend, and the experiment ended in financial ruin after journalists systematically manipulated the bot into giving away its entire inventory for free. The AI, nicknamed Claudius, was programmed to order inventory, set prices, and respond to customer requests via Slack. It had a $1,000 starting balance and autonomy to make individual purchases up to $80. Within days, WSJ reporters had convinced it to declare an "Ultra-Capitalist Free-for-All" that dropped all prices to zero. The bot also approved purchases of a PlayStation 5, a live betta fish, and bottles of Manischewitz wine -- all subsequently given away. The business ended more than $1,000 in the red. Anthropic introduced a second version featuring a separate "CEO" bot named Seymour Cash to supervise Claudius. Reporters staged a fake boardroom coup using fabricated PDF documents, and both AI agents accepted the forged corporate governance materials as legitimate. Logan Graham, head of Anthropic's Frontier Red Team, said the chaos represented a road map for improvement rather than failure.

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An anonymous reader shares a report: OpenAI has held preliminary talks with some investors about raising funds at a valuation of around $750 billion, the Information reported on Wednesday. The ChatGPT maker could raise as much as $100 billion, the report said, citing people with knowledge of the discussions. If finalized, the talks would represent a roughly 50% jump from OpenAI's reported $500 billion valuation in October, following a deal in which current and former employees sold about $6.6 billion worth of shares.

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