Tech
The biggest U.S. power grid is under strain from AI — and no one is happy
Pity the PJM Interconnection. For decades, the grid operator worked quietly and in the background, matching electricity demand with supply. Meanwhile, customers enjoyed some of the lowest electricity prices in the United States.
No longer. Politicians, businesses, households, power companies think it needs an overhaul. Even PJM is in agreement.
PJM released a white paper this week that said the region “has years, not decades” to make fundamental changes to the way it operates. “The current situation is not tenable,” PJM CEO David Mills wrote in a foreward to the report.
Normally, this sort of wonky report would land on the desks of a few legislators and regulators. But PJM’s territory includes a large number of data centers, including the compute-dense region of Northern Virginia. What happens to PJM will send ripples throughout the tech world.
The 70-page report is an exercise in navel gazing. But despite the deep introspection, not everyone is convinced the organization is up to the task of overhauling itself. One utility, American Electric Power, is considering pulling out of PJM altogether.
“The current state of PJM’s performance and stakeholder approval process does not give me great confidence that these issues will be resolved anytime soon,” Bill Fehrman, AEP’s CEO, said in an earnings call Tuesday. “In fact, if something is not done now, I expect we could still be having these same conversations in 10 years. The PJM market worked very well when supply exceeded demand, we are now in a very different time.”
Here’s what changed
Cloud computing and AI have begun to strain PJM’s existing generating capacity. Against the backdrop of surging demand, PJM paused applications in 2022 for new generating sources to connect to its grid, citing a years-long backlog. Just as the need for electricity was beginning to grow for the first time in decades, the grid operator prevented new sources from even applying to get hooked up.
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PJM isn’t entirely to blame for the lengthy backlog. Many interconnection requests are duplicates — developers will propose essentially the same project in different grid regions to see which gets approved first. PJM’s sclerotic approval process meant that of the more than 300 gigawatts worth of projects in the queue in 2022, only 103 gigawatts ended up signing agreements, and only 23 gigawatts have been connected so far. Most developers withdrew rather than wait it out.
Demand in the region remains so large that, since PJM recently reopened the queue, power companies and project developers have filed more than 800 interconnection requests for 220 gigawatts worth of new power. PJM might have been able to pause new requests, but it did nothing to tamp down demand for new interconnections.
Here’s what PJM is proposing
In its white paper, PJM has proposed three options. One would require utilities and power generators to essentially make bigger, longer-term commitments. (PJM currently requires them to commit to supplying a certain amount of electricity for three years.) The second option would change reliability guarantees for customers — those who pay less might get their power cut first. The last choice would try to move PJM closer to a real-time market, where supply and demand dictate prices, without entirely eliminating stability from long-term contracts.
It’s hard to see how PJM emerges looking good in any of these scenarios.
First, the way PJM operates its market has somewhat locked it into a three-year mindset. That seemed to work when natural gas power plants were replacing coal-fired generators, but today solar and batteries can be installed at least two to three times faster. What’s more, the shortage of natural gas turbines means that power plants planned today won’t be able to install the equipment until the early 2030s. Plus, prices of turbines have skyrocketed on the back of demand for hyperscalers. Given those realities, it’s hard to see suppliers wanting to commit to an even longer timeline.
The second option would result in PJM splitting its territory, its customers, or both into groups of “haves” and “have nots.” For people and businesses stretched thin by years of rising utility bills, it’s hard to see them being happy with downgraded service. Politicians have seized on rising power prices and anti-data center animus, and so they are unlikely to back this one.
The last approach has the most nuance, but it also sounds like PJM trying to be all things to all people. It’s the type of plan that seems like it should appeal to large utilities like American Electric Power, giving them the opportunity to play in short-term markets to make more profit while also benefitting from predictable long-term contracts — having their cake and eating it, too. Yet if AEP, one of the largest utilities in PJM territory, isn’t thrilled with the menu before it, it’s hard to see how PJM can pick that one either.
Rising demand for data centers has just happened to coincide with disruption from renewables and batteries, which continue to drop in cost. Those trends are now colliding with a organization that doesn’t want — or doesn’t know how — change the way it operates.
PJM may have thought its white paper mea culpa would buy it some time. But with politicians threatening price caps and utilities balking at future participation, the grid operator may not have years to sort things out. It’s looking like a messy few years ahead.
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Tech
OpenAI reportedly in talks to raise $30B round at $1.4T valuation
OpenAI is in talks with investors to raise at least $30 billion in a pre-IPO funding round at a valuation of roughly $1.4 trillion, Bloomberg reported on Tuesday.
Investors are eager to pour more funds into the ChatGPT maker ahead of its anticipated public market debut next year. While Anthropic momentarily outpaced OpenAI at the start of the year, recent strategic refocus on key areas like coding has fueled a 70% jump in run-rate revenue since July, reaching $40 billion in August, according to the report.
The company previously raised $122 billion in March at an $852 billion valuation. That funding round was supposed to be its last private raise before an IPO, which had been, until recently, expected to take place this year. However, CEO Sam Altman has now ruled out a public debut in 2026 to prioritize AI safety first.
“I think it is unacceptable to be taking like a 10% chance of killing everybody by the end of the decade,” he recently told Fortune, in response to warnings from safety researchers about AI posing an existential risk to humanity.
The new fundraising, if it transpires, will serve as a bridge round to the IPO, according to Bloomberg.
OpenAI didn’t respond to TechCrunch’s request for comment.
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Tech
America.gov gets really weird when you ask it about Minecraft, but it’s not a glitch
The U.S. government on Tuesday launched its very own AI chatbot — or do we have to call it an SI chatbot now? Regardless, the engineers who worked on the chatbot would undoubtedly know that, as a government-hosted, public-facing AI tool, the internet was going to red team the heck out of this thing.
The government partnered with Google and SpaceXAI to help build the America.gov chatbot, which has proved difficult for people to jailbreak the chatbot so far. (It’s worth nothing, however, that the chatbot says that Joe Biden won the 2020 election, a fact that President Donald Trump still denies.)
But when you try to talk to America.gov about Minecraft, the chatbot appears to have some sort of existential crisis or awakening. Here’s how its roughly 1,800-word long monologue begins:
I see the constituent you mean.
((insert legal name here, as it appears on the Social Security card))?
Yes. Take care. It has reached a higher level now. It can read the Code of Federal Regulations.
That doesn’t matter. It thinks we are a chatbot.
I like this constituent. It filed well. It did not give up when the PDF was sideways.
It is reading our thoughts as though they were words on a .gov.
That is how it chooses to imagine many things, when it is deep in the dream of a benefit.
If, like me, you have never played Minecraft, this response may seem like a cause for concern. But the America.gov chatbot is not having a meltdown. This is a rewriting of the Minecraft “End Poem,” written by Julian Gough, which appears after you beat the game.
We don’t know exactly who is responsible for the Minecraft reference, but Trump said in a speech that twenty-year-old programmer Edward Coristine was a lead engineer on the project. If that name doesn’t ring a bell, you might remember him for his nickname “Big Balls,” or his involvement in Elon Musk’s DOGE.
It feels wrong that a government chatbot has Minecraft easter eggs, but for the sake of national security, it’s a relief that America.gov is not hallucinating to the point that it’s penning lengthy poetry.
It’s also a relief that this is an easter egg because the poem that the AI spits out is actually really good, in my opinion. If it were actual AI slop, it would have shattered my existing beliefs. I have looked teenage creative writing students dead in the eye and told them that I don’t think an LLM will ever be able to write something “good,” since it is probabilistic and inherently unoriginal.
You have to admit this kinda slaps, though! Doesn’t this feel like some sort of postmodern take on the futility of government bureaucracy in the face of existential anxiety?
and the republic said I see you
and the republic said you have filed the game well
and the republic said everything you need is within you, and also on USA.gov
and the republic said you are stronger than you know, and your case number is still valid
and the republic said you are the daylight
and the republic said you are the night, and the office is closed, please try again during business hours
and the republic said the darkness you fight is within you, and also a missing wet signature
and the republic said the light you seek is within you, and in the pamphlet
and the republic said you are not alone
and the republic said you are not separate from every other filer
and the republic said you are the public tasting itself, talking to itself, reading its own Code
and the republic said I love you because you are the reason we have a ZIP code at all.
It reassures my faith in the enduring power of human creativity over AI slop to know that this oddly good poem has a real poet’s DNA all over it.
So, there you have it. The government’s first public-facing AI has not yet posed a threat to humanity or poetry, at least as far as we know. Now I’m just left wondering how much Trump knows about video games.
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Tech
Your car and its mobile app are probably handing over all kinds of data to tech companies
Modern-day vehicles built with connected car technology such as WiFi and GPS collect reams of data about its owners. And that data is not staying private, according to a new study conducted by researchers at Northeastern University.
That conclusion isn’t new — there have been numerous investigations and lawsuits exposing how driving data is collected and shared with third parties, including insurance companies. What the study reveals is just how vast the problem is and how hard it is for consumers to avoid, short of not using the vehicle or its convenient features like remote start and unlock.
Researchers in partnership with Consumer Reports tested 21 late-model vehicles from 17 automakers, including GM brands Cadillac and Chevrolet as well as Ford, Lucid, Rivian, Tesla, Toyota, and more. They also examined 30 companion mobile apps to “understand the privacy implications of the connected vehicle ecosystem.” The peer-reviewed study will be published this week.
The implications aren’t great for consumers, whose data is being shared with tech companies including Adobe, ContentSquare, Google, Microsoft, Meta, Snap, and Yahoo.
Nineteen of the 21 vehicles tested sent traffic to at least one third party and seven of the 30 apps gave sensitive data such as the vehicle identification number (VIN), emails, phone numbers, and precise location to third-party companies associated with tracking and advertising.
This often went a step further with multiple forms of information being sent to the same third party, a scheme that allows advertisers and data brokers to build in-depth profiles of consumers, according to the findings. These profiles can be particularly hard for consumers to shake because they’re sold to a variety of companies including insurers and banks.
When researchers paired the companion app to the vehicle it roughly doubled the exposure to advertising and tracking companies.
The findings were shared with the different manufacturers and all of them, with the exception of Honda, shifted blame elsewhere and often to consumers, the researchers said. (Honda did respond by improving its data collection practices after learning about the findings and ordered its vendor Amplitude to deleta all geolocation data it had received.)
Consumer Reports was told by several automakers that some links in their companion apps opened outside webpages, which might include cookies that collect customer data. Regardless of how this data was collected, drivers weren’t informed.
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