Latest news with #bigtech
Globe and Mail
3 days ago
- Business
- Globe and Mail
Constellation's Meta Deal: Why This Nuclear Stock is a Must Buy Now
Constellation Energy ( CEG ) and Meta signed a 20-year nuclear power deal on June 3. The power purchase agreement further solidifies the long-term growth relationship between nuclear energy and artificial intelligence, entrenching Constellation as one of the best long-term investments on Wall Street. Despite the blockbuster nuclear energy deal to fuel Meta's AI data center push—Constellation's second 20-year deal with an AI hyperscaler—the stock gave up all its early morning gains from Tuesday and fell again Wednesday morning. Constellation got rejected at its all-time highs after it grew overheated. Patient long-term investors and traders now have a chance to buy the nuclear energy powerhouse 13% below its highs, or wait for a possibly larger pullback to some of its moving averages. CEG Stock: Why The Nuclear Energy Giant is a Must Buy The U.S. government and big tech—two of the most critical drivers of the economy—have gone all in on nuclear energy. The U.S. government has launched various initiatives to support the revival of nuclear energy, aiming to triple capacity by 2050 to fuel economic growth and AI development and build greater energy independence. President Trump signed a nuclear energy executive order on May 23, designed to speed up nuclear power expansion and innovation. Meanwhile, Meta, Microsoft, Amazon, and other mega-cap technology companies have all signed nuclear energy deals with established companies and upstarts aiming to roll out the next generation of nuclear energy technology over the next decade. Big tech is helping drive the nuclear energy revolution because they are trying to use less fossil fuels while their AI expansion requires more energy than ever. Large data centers can consume nearly as much electricity as a midsize city, and generative AI platforms like ChatGPT use at least 10 times the energy of a typical Google search. Constellation is the largest U.S. nuclear power plant operator, managing over 20 reactors across roughly a dozen sites in the Midwest, Mid-Atlantic, and Northeast. CEG strengthened its nuclear energy bull case by securing a 20-year power purchase agreement with Microsoft ( MSFT ) in September that will see it restart Three Mile Island Unit 1. The biggest U.S. nuclear power company then cemented its position as a modern energy titan with its planned $26.6 billion deal to acquire natural gas and geothermal powerhouse Calpine at the start of 2025. CEG's acquisition creates the largest clean energy firm and expands its footprint into power-hungry, tech-heavy Texas and California. Most recently, Constellation and Meta ( META ) signed a 20-year power purchase agreement for nuclear power in Illinois set to start in 2027. 'The agreement supports the relicensing and continued operations of Constellation's high-performing Clinton nuclear facility for another two decades after the state's ratepayer funded zero emission credit (ZEC) program expires. This deal will expand Clinton's clean energy output by 30 megawatts through plant uprates.' The deal will also help Constellation pursue the possibility of building small modular nuclear reactors at the Illinois site. CEG raised its dividend by 10% in 2025 after it boosted its payout by 25% in 2024. Constellation also projects 'visible, double-digit long-term base EPS growth backed by the Nuclear Production Tax Credit.' The nuclear energy powerhouse is expected to grow its adjusted earnings by 9% in 2025 and 22% in 2026. CEG's EPS estimates have climbed significantly over the last few years, with its FY26 estimates up solidly since its early May earnings release. Buy Nuclear Energy Stock CEG on the Dip and Hold Forever? Constellation stock has soared 355% in the last three years to crush the Energy sector's 8% decline and the S&P 500's 50% run. The company's 470% surge since its early February 2022 IPO is more impressive, as Wall Street dove into the stock for dividend and earnings expansion and the long-term upside potential of nuclear energy. Image Source: Zacks Investment Research CEG has been on more of an up and down run over the past 12 months, yet it is still up 45%. The stock got rejected right at its all-time highs on Tuesday and trades roughly 13% below those levels. Long-term investors might want to buy Constellation now and avoid the market timing game (and buy more if fades to its 50-day). Traders, meanwhile, might wait for a possible slide to its early-January breakout levels (and its October highs) or other key moving averages. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT): Free Stock Analysis Report Constellation Energy Corporation (CEG): Free Stock Analysis Report Meta Platforms, Inc. (META): Free Stock Analysis Report
RNZ News
5 days ago
- Business
- RNZ News
Needy data centres showing up in water-scarce areas
Photo: A joint investigation by UK media company, The Guardian, and a non-profit investigating organisation, Source Material, has found that big tech companies are operating data centres that use vast amounts of water in areas of the world where water is scarce. The companies are also reported to be building many more. The developments could potentially have a huge impact on populations already living with water shortages. In response to questions from the two media organisations, Amazon and Google defended their developments, saying they always take water scarcity into account. The reporters used local news reports and industry sources to compile a map of 632 datacentres - either built or under development. Kathryn speak to one of the reporters from Source Material involved in the investigation, Constanza Gambarini.
TechCrunch
27-05-2025
- Business
- TechCrunch
AI may already be shrinking entry-level jobs in tech, new research suggests
If and when AI will start replacing human labor has been the subject of numerous debates. While it's still hard to say with certainty if AI is beginning to take over roles previously done by humans, a recent survey from the World Economic Forum found that 40% of employers intend to cut staff where AI can automate tasks. Researchers at SignalFire, a data-driven VC firm that tracks job movements of over 600 million employees and 80 million companies on LinkedIn, believe they may be seeing first signs of AI's impact on hiring. When analyzing hiring trends, SignalFire noticed that tech companies recruited fewer recent college graduates in 2024 than they did in 2023. However, tech companies, especially the top 15 big tech businesses, ramped up their hiring of experienced professionals. Specifically, SignalFire found that big tech companies reduced the hiring of new graduates by 25% in 2024 compared to 2023. Meanwhile, graduate recruitment at startups decreased by 11% compared to the prior year. Although SignalFire wouldn't reveal exactly how many fewer grads were hired according to their data, a spokesperson told us it was thousands. True, adoption of new AI tools might not fully explain the dip in recent grad hiring but Asher Bantock, SignalFire's head of research, says there's 'convincing evidence' that AI is a significant contributing factor. Entry-level jobs are susceptible to automation because they often involve routine, low-risk tasks that generative AI handles well. Techcrunch event Join us at TechCrunch Sessions: AI Secure your spot for our leading AI industry event with speakers from OpenAI, Anthropic, and Cohere. For a limited time, tickets are just $292 for an entire day of expert talks, workshops, and potent networking. Exhibit at TechCrunch Sessions: AI Secure your spot at TC Sessions: AI and show 1,200+ decision-makers what you've built — without the big spend. Available through May 9 or while tables last. Berkeley, CA | REGISTER NOW AI's new coding, debugging, financial research, and software installation abilities could mean companies need fewer people to do that type of work. AI's ability to handle certain entry-level tasks means some jobs for new graduates could soon be obsolete. Gabe Stengel, the founder of AI financial analyst startup Rogo, started his career at Lazard investment bank where he helped large pharma companies buy biotech startups. Rogo's tool 'can do almost all the work I did in the analysis of those companies,' Stengel said on stage at Newcomer's financial technology summit last week, 'We can put together the materials, diligence the company, look through their financials.' While most large investment banks haven't explicitly reduced analyst hiring due to AI yet, executives at firms like Goldman Sachs and Morgan Stanley previously considered cutting junior staff hires by up to two-thirds and lowering the pay of those they hire because the work with AI is not as demanding as before, the New York Times reported last year. Although AI's threat to low-skilled jobs is real, tech companies' need for experienced professionals is still rising. According to SignalFire's report, big tech companies increased hiring by 27% for professionals with two to five years of experience, while startups hired 14% more individuals in that same seniority range. A frustrating paradox emerges for recent graduates: they can't get hired without experience, but they can't get experience without being hired. While this dilemma is not new, Heather Doshay, SignaFire's people and talent partner, says it is considerably exacerbated by AI. Dashay's advice to new grads: master AI tools. 'AI won't take your job if you're the one who's best at using it,' she said.
The Guardian
14-05-2025
- Business
- The Guardian
Labour's open door to big tech leaves critics crying foul
The problem with the UK, according to the former Google boss Eric Schmidt, is that it has 'so many ways that people can say no'. However, for some critics of the Labour government, it has a glaring issue with saying yes: to big tech. Schmidt made his comment in a Q&A conversation with Keir Starmer at a big investment summit in October last year. The prominent position of a tech bigwig at the event underlined the importance of the sector to a government that has made growth a priority and believes the sector is crucial to achieving it. Top US tech firms have a big presence in the UK, including Google, Mark Zuckerberg's Meta, Amazon, Apple, Microsoft and Palantir, the data intelligence firm co-founded by the Maga movement backer Peter Thiel. If a government wants growth, then it is hard to look beyond firms with a combined market value of many trillions of dollars. According to one former big-tech employee with knowledge of how the leading US companies further their interests in the UK, such heft brings immediate access. 'We never had a problem walking the corridors of Whitehall because we could claim to create thousands of jobs and create millions for the economy. Governments love job announcements,' said the ex-employee. It is in this context that Peter Kyle, the tech secretary, has met people from the tech sector nearly 70% more often than his predecessor, Michelle Donelan – at an average of more than one meeting every week. The list includes multiple meetings with Google, Amazon, Meta and Apple. UKAI, a trade body representing the UK's artificial intelligence industry, says smaller players are being squeezed out as a consequence. 'Our concerns is that there is a huge imbalance between a handful of global players who are able to influence directly what No 10 is thinking about on policy, and the thousands of other businesses that make up the AI industry across the UK,' says Tim Flagg, UKAI's chief executive. 'Our voice is not being heard, but the economic growth that the government seeks will come from these companies.' Echoing the former big-tech employee, Flagg adds that big tech firms have the resources allowing them to build and sustain political relationships, 'getting them into the room and concentrating influence at a senior political level'. According to one source who has observed the industry's interactions with the government, big tech companies also deployed those resources before the general election, allowing them to hit the ground running with established relationships after the Labour landslide. Another talks of the Tony Blair Institute's 'phenomenal' access to No 10. The thinktank is backed financially by the tech billionaire Larry Ellison and has been a prominent voice in the debate over AI policy although it says it maintains 'intellectual independence over our policy work'. For critics of the government's interaction with big tech, its attempts at reforming copyright law are an exemplar of an imbalanced relationship. Ministers have proposed letting AI companies use copyright-protected work without permission to build their products, unless those copyright holders 'opt out' of the process in an as-yet undetermined manner. Sign up to TechScape A weekly dive in to how technology is shaping our lives after newsletter promotion A source close to Kyle has signalled that the opt-out scenario is no longer the preferred option out of four on the table, but the damage has been done. A campaign against the proposal has been backed by every leading light in the UK's formidable creative industries, from Paul McCartney to Dua Lipa and Kazuo Ishiguro. If tech is the answer to the government's economic growth problem, then AI is a crucial element of that approach with its promise of runaway improvements in productivity – a measure of economic efficiency. But the mooted copyright policy has been a PR disaster, if measured in celeb-powered headlines. The News Media Association, which represents news organisations including the Guardian, also opposes the proposal. Google and OpenAI, the developer of ChatGPT, have come out against the plans as well. A former government adviser who worked on tech policy says weakening copyright – which they describe as the 'lowest hanging fruit' on a list of pro-tech policy options – isn't the 'magic answer' to winning the AI race anyway. 'In taking this approach, government risks the worst of all worlds, which is devastating a sector where the UK is actually world-leading, while not actually taking the actions necessary to make the UK an AI superpower.' The department for science, innovation and technology makes 'no apologies' for interacting with a sector that employs 2 million people in the UK, according to a spokesperson, adding that 'regular engagement' with tech companies of all sizes is fundamental to delivering economic growth. In his conversation with Schmidt, Starmer said the key question around policies from now on would be 'does this promote growth or does it not promote growth?'. The tech industry is at the core of this approach, but in terms of the copyright debate it has damaged important relationships elsewhere.
The Guardian
14-05-2025
- Business
- The Guardian
Minister accused of being too close to big tech after analysis of meetings
A senior cabinet minister has been accused of being too close to big tech after analysis showed a surge in his department's meetings with companies such as Google, Amazon, Apple and Meta since Labour came to power. According to a Guardian analysis of publicly available data, Peter Kyle met people close to or representing the sector 28 times in a six-month period. That's more than one meeting every week on average, and nearly 70% more often than his predecessor as science and technology secretary, Michelle Donelan. The findings have brought renewed criticism from those who believe he has used his position to push the sector's agenda even in the face of concerns about online safety and protections for the creative industries. UKAI, a trade body representing the UK's artificial intelligence industry, said smaller players were being squeezed out as a consequence of the government's focus on big tech. 'Our concern is that there is a huge imbalance between a handful of global players who are able to influence directly what No 10 is thinking about on policy, and the thousands of other businesses that make up the AI industry across the UK,' said Tim Flagg, the UKAI chief executive. 'Our voice is not being heard, but the economic growth that the government seeks will come from these companies.' Labour has put the technology sector at the heart of much of what it is promising to do in government. Keir Starmer said in a speech earlier this year that artificial intelligence could 'turbocharge growth', and the prime minister is now pursuing a tech-focused trade deal with the US, having last week agreed a range of tariff reductions. Kyle has been at the centre of the government's outreach to the sector, calling those who work in it 'the bold people building a new future for Britain'. Some in the creative sector blame Kyle for piloting controversial proposals to allow AI companies to circumvent copyright protections and use creative material to train their tools. The Guardian revealed last month that ministers have drawn up concessions to those plans after a backlash from some of the UK's best-known artists, including Elton John and Paul McCartney. On Wednesday ministers sought to block a Lords amendment to the data bill that would have required AI companies to disclose their use of copyright-protected content. Some in Labour circles now believe the technology secretary has become so close to the industry he is supposed to monitor that he will be moved in the next reshuffle, possibly to replace Bridget Phillipson as education secretary. Victoria Collins, the Liberal Democrat science and technology spokesperson, said: 'Peter Kyle has rightly got a reputation for being too close to big tech – unable to defy his friends at Meta and X when it comes to standing up for our kids' online safety or the rights of British creatives. 'Kyle rubbing shoulders with so many big US tech bros, instead of our great UK startups trying to get their foot in the door, shows he's missing a trick.' Caroline Dinenage, the Conservative chair of the culture, media and sport select committee, said: 'It's great that [Kyle] is taking a keen interest in the growth of this sector. But he needs to ensure he's hearing balanced voices from across the high-performance business sectors the UK economy depends upon, to avoid irrevocable unintended consequences of advancing at the expense of others.' A spokesperson for the science and technology department said: 'As the department for technology, we make no apologies for regularly engaging with the sector – one that employs nearly 2 million people in the UK. Regular engagement with technology companies of all sizes is fundamental to delivering economic growth and transforming our public services.' Information published by the government shows that from July 2024 until December 2024 – the most recent period for which there is data – Kyle held meetings with people representing or advocating for technology companies 28 times. Google, Amazon and Microsoft were present at five of those meetings, the data shows, while Meta attended four. Five of Kyle's meetings, all in early August, were to discuss online disinformation and how it had contributed to the spread of violence during that summer's riots. But apart from that, almost every single one was to discuss 'investment', 'opportunities', or both. Last August Kyle met all four of those companies, including others from the industry, to discuss AI regulation. This year, he has met AI companies several times, according to documents obtained under freedom of information rules by the website Those meetings include three with the US AI company Anthropic, as well as a two-day flurry of meetings in February during which he saw executives from OpenAI, the chip designer Arm, Google DeepMind, ElevenLabs and Synthesia. Many of those meetings were also attended by Matt Clifford, the prime minister's adviser on AI, who has also been criticised for carrying out his role while also holding shares in dozens of AI companies. Earlier this year the Guardian revealed the government was delaying its plans to regulate the AI sector. Last September, Kyle met Tony Blair in a meeting designed to 'discuss [his department's] priorities'. However, information obtained by Politico last week under freedom of information laws shows Blair used that meeting to suggest Kyle meet the Ellison Institute of Technology, which is funded by Larry Ellison, the billionaire tech mogul who also funds the Tony Blair Institute. Kyle was also involved in watering down proposals from a Labour backbencher to ban addictive smartphone algorithms aimed at young teenagers.
