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Jet Engine Shortages Threaten AI Data Center Expansion As Wait Times Stretch Into 2030

Slashdot.org - Tue, 10/28/2025 - 05:00
A global shortage of jet engines is threatening the rapid expansion of AI data centers, as hyperscalers like OpenAI and Amazon scramble to secure aeroderivative turbines to power their energy-hungry AI clusters. With wait times stretching into the 2030s and emissions rising, the AI boom is literally running on jet fuel. Tom's Hardware reports: Interviews and market research indicate that manufacturers are quoting years-long lead times for turbine orders. Many of those placed today are being slotted for 2028-30, and customers are increasingly entering reservation agreements or putting down substantial deposits to hold future manufacturing capacity. "I would expect by the end of the summer, we will be largely sold out through the end of '28 with this equipment," said Scott Strazik, CEO of turbine maker GE Vernova, in an interview with Bloomberg back in March. General Electric's LM6000 and LM2500 series -- both derived from the CF6 jet engine family -- have quickly become the default choice for AI developers looking to spin up serious power in a hurry. OpenAI's infrastructure partner, Crusoe Energy, recently ordered 29 LM2500XPRESS units to supply roughly one gigawatt of temporary generation for Stargate, effectively creating a mobile jet-fueled grid inside a West Texas field. Meanwhile, ProEnergy, which retrofits used CF6-80C2 engines into trailer-mounted 48-megawatt units, confirmed that it has delivered more than 1 gigawatt of its PE6000 systems to just two data center clients. These engines, which were once strapped to Boeing 767s, now spend their lives keeping inference moving. Siemens Energy said this year that more than 60% of its US gas turbine orders are now linked to AI data centers. In some states, like Ohio and Georgia, regulators are approving multi-gigawatt gas buildouts tied directly to hyperscale footprints. That includes full pipeline builds and multi-phase interconnects designed around private-generation campuses. But the surge in orders has collided with the cold reality of turbine manufacturing timelines. GE Vernova is currently quoting 2028 or later for new industrial units, while Mitsubishi warns new turbine blocks ordered now may not ship until the 2030s. One developer reportedly paid $25 million just to reserve a future delivery slot.

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10 ways Gemini is helping higher education institutions10 ways Gemini is helping higher education institutionsDirector of Education Sales, North America

GoogleBlog - Tue, 10/28/2025 - 03:00
Here’s how students and faculty at higher education institutions are using Gemini.Here’s how students and faculty at higher education institutions are using Gemini.
Categories: Technology

Longleaf Partners Fund: Beating the Market Is Harder Than You Think

MyMoneyBlog.com - Tue, 10/28/2025 - 02:48

One of the early books that heavily impacted my investing philosophy was Unconventional Success: A Fundamental Approach to Personal Investment by David Swensen. As a very successful (active!) manager of the Yale Endowment, he offered common-sense explanations of why low costs are good and which core asset classes make the most sense to own.

In addition, he pointed out the characteristics to look for in successful active management:

  • Hold a limited number of stocks. Bet boldly on fewer companies (high “active share”), as opposed to being a “closet index fund”.
  • High rate of internal investment. The managers should have a high percentage of their own net worth in the same funds that they ask you to invest in. They should “eat their own cooking.”
  • Limit assets under management. If there is more money flowing in than they can invest efficiently, they should close the fund to avoid asset bloat. This is hard to do, as it requires them to turn down more money! 😮
  • Reasonable management fees. Costs still matter, and the lower the expense ratio, the lower the hurdle to overcome and the more “alpha” ends up in your pocket.

Back in 2005, Swensen specifically named Southeastern Asset Management and their flagship Longleaf Partners Fund (LLPFX) as an example of a company that most clearly displayed all of these characteristics, but also added an important caveat at the end:

Southeastern Asset Management (sponsor of the Longleaf Partners mutual-fund family) exemplifies every fundamentally important, investor-friendly characteristic conducive to active-management success. Portfolio managers exhibit the courage to hold concentrated portfolios, to commit substantial funds side by side with shareholders, to limit assets under management, to show sensitivity to tax consequence, to set fees at reasonable levels, and to shut down funds in the face of diminished investment opportunity.

Even though all the signs point in the right direction, investors still face a host of uncertainties regarding Southeastern’s future active-management success.

So for the last 18 years (!), I have kept up with their quarterly and annual shareholder letters. (You can register for free e-mail updates, even if you don’t own their funds.)

Unfortunately, the performance of the Longleaf Partners Fund for most of that time has been rather dismal. LLPFX is the blue line, while the (no cost) index benchmark (Morningstar US Mid Broad Value TR USD) is yellow, and the category of peers (Mid-Cap Value) is red.

Here are the latest return numbers after Q3 2025:

This fund started out in 1987 and had some great outperformance all the way up through the early 2000s, which is how they became well-known. However, you’ll notice that even including its early success, over the long run it has lagged it’s Large Value index benchmark by very close to its expense ratio. (Costs matter.) If you exclude that part and invested after its early outperformance (or after you read this famous book), then you did much worse.

I am not trying to pick on this fund to be mean. I track them because they showed all the good things to look for in an active manager. They even closed the fund to new money in 2017, which means they gave up easy money when they didn’t have enough things to buy. That’s really rare! I would be happy to see them succeed.

I have access to Morningstar reports via my library, and even today, M* acknowledges that the managers of Longleaf Partners own over $1 million of the fund themselves (“eat their own cooking”), have below-average costs (for an active fund), and have a long average manager tenure (48 years). But yet their “Parent” rating is low because of their poor past performance? In the end, despite all the supposedly different factors they examine, it seems that Morningstar ratings are still primarily about past performance. LLPFX currently has 1 sad star.

For all that I can see, the managers of Longleaf Partners continue to try and do things the “right” way. They are experienced value-investing managers that showed skill and invested only in high-conviction picks. They had early success and the freedom to invest however they chose. They have shown patience and the willingness to avoid asset bloat. But even with all that they did not beat the S&P 500 or even the majority of their fund peers over the last decade.

Bottom line. Finding what has performed well recently by looking backward is easy. Actually beating a low-cost index fund for a 10 to 20+ year period in the future by picking stocks or picking a manager today is very hard, in my opinion much harder than most people like to think. I always try to remember this when I think about investing in something new that I just read about…

Categories: Finance

ExxonMobil Accuses California of Violating Its Free Speech

Slashdot.org - Tue, 10/28/2025 - 02:00
ExxonMobil has sued California, claiming the state's new climate disclosure laws violate its First Amendment rights by forcing the company to report greenhouse gas emissions and climate risks using standards it "fundamentally disagrees with." The Verge reports: The oil and gas company claims that the two laws in question aim to "embarrass" large corporations the state "believes are uniquely responsible for climate change" in order to push them to reduce their greenhouse gas emissions. There is overwhelming scientific consensus that greenhouse gas emissions from fossil fuels cause climate change by trapping heat on the planet. [...] Under laws the state passed in 2023, "ExxonMobil will be forced to describe its emissions and climate-related risks in terms the company fundamentally disagrees with," a complaint filed Friday says. The suit asks a US District Court to stop the laws from being enforced. [...] ExxonMobil's latest suit now says the company "understands the very real risks associated with climate change and supports continued efforts to address those risks," but that California's laws would force it "to describe its emissions and climate-related risks in terms the company fundamentally disagrees with." "These laws are about transparency. ExxonMobil might want to continue keeping the public in the dark, but we're ready to litigate vigorously in court to ensure the public's access to these important facts," Christine Lee, a spokesperson for the California Department of Justice, said in an email to The Verge.

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OpenAI Says Over a Million People Talk To ChatGPT About Suicide Weekly

Slashdot.org - Mon, 10/27/2025 - 22:30
An anonymous reader quotes a report from TechCrunch: OpenAI released new data on Monday illustrating how many of ChatGPT's users are struggling with mental health issues and talking to the AI chatbot about it. The company says that 0.15% of ChatGPT's active users in a given week have "conversations that include explicit indicators of potential suicidal planning or intent." Given that ChatGPT has more than 800 million weekly active users, that translates to more than a million people a week. The company says a similar percentage of users show "heightened levels of emotional attachment to ChatGPT," and that hundreds of thousands of people show signs of psychosis or mania in their weekly conversations with the AI chatbot. OpenAI says these types of conversations in ChatGPT are "extremely rare," and thus difficult to measure. That said, the company estimates these issues affect hundreds of thousands of people every week. OpenAI shared the information as part of a broader announcement about its recent efforts to improve how models respond to users with mental health issues. Further reading: Parents Sue OpenAI Over ChatGPT's Role In Son's Suicide

Read more of this story at Slashdot.

NextEra Energy Partners With Google To Restart Iowa Nuclear Plant

Slashdot.org - Mon, 10/27/2025 - 21:10
NextEra Energy and Google have partnered to restart Iowa's long-shuttered Duane Arnold nuclear plant, marking the first major U.S. attempt to revive a decommissioned reactor. "We expect Duane Arnold to be back online in early 2029, and the plant will provide more than 600 MW of clean, safe, 'always-on' nuclear energy to the regional grid," said Google in a blog post. Reuters reports: Under the 25-year agreement, the tech giant will purchase power from the 615-MW plant for its growing cloud and AI infrastructure in the state, while also driving significant economic investment to the Midwest region. One of the plant's minority owners, Central Iowa Power Cooperative (CIPCO), will purchase the remaining portion of the plant's output on the same terms as Google, NextEra said. The utility added that it had also signed agreements to acquire CIPCO and Corn Belt Power Cooperative's combined 30% interest in the Duane Arnold plant, bringing NextEra's ownership to 100%.

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Study Finds Growing Social Circles May Fuel Polarization

Slashdot.org - Mon, 10/27/2025 - 20:30
A new study from the Complexity Science Hub Vienna finds that as people's close social circles expanded from two to five friends around the rise of social media (2008-2010), polarization in society spiked. "The connection between these two developments could provide a fundamental explanation for why societies around the world are increasingly fragmenting into ideological bubbles," reports Phys.org. From the report: The researchers' findings confirm that increasing polarization is not merely perceived -- it is measurable and objectively occurring. "And this increase happened suddenly, between 2008 and 2010," says [says Stefan Thurner from the Complexity Science Hub (CSH)]. The question remained: what caused it? [...] The sharp rise in both polarization and the number of close friends occurred between 2008 and 2010 -- precisely when social media platforms and smartphones first achieved widespread adoption. This technological shift may have fundamentally changed how people connect with each other, indirectly promoting polarization. "Democracy depends on all parts of society being involved in decision-making, which requires that everyone be able to communicate with each other. But when groups can no longer talk to each other, this democratic process breaks down," emphasizes Stefan Thurner. Tolerance plays a central role. "If I have two friends, I do everything I can to keep them -- I am very tolerant towards them. But if I have five and things become difficult with one of them, it's easier to end that friendship because I still have 'backups.' I no longer need to be as tolerant," explains Thurner. What disappears as a result is a societal baseline of tolerance -- a development that could contribute to the long-term erosion of democratic structures. To prevent societies from increasingly fragmenting, Thurner emphasizes the importance of learning early how to engage with different opinions and actively cultivating tolerance. The research was published in Proceedings of the National Academy of Sciences.

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