Microsoft is turning Foxconn's empty buildings into the 'world's most powerful' data centers

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In this Newsletter Today:

• Microsoft is turning Foxconn's empty buildings into the 'world's most powerful' data centers

• Reddit wants a better AI deal with Google: users in exchange for content

• How chatbots and their makers are enabling AI psychosis

• Top New AI Tools

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Microsoft is turning Foxconn's empty buildings into the 'world's most powerful' data centers

Microsoft plans to launch a Fairwater AI data center in Wisconsin in early 2026, claiming it is the world's most powerful. The $3.3 billion facility, located at the site of Foxconn's failed LCD factory, spans 1.2 million square feet and houses hundreds of thousands of Nvidia's GB200 GPUs. The cluster of interconnected GPUs is ten times more powerful than the fastest supercomputer and will accelerate AI training efforts. Microsoft claims multiple other Fairwater datacenters are under construction across the US. The data center's design is environmentally friendly, minimizing water waste through a closed-loop cooling system. Microsoft's vice chair and president highlighted the company's sustainability efforts, given AI's reputation for high energy consumption.

Reddit wants a better AI deal with Google: users in exchange for content

Reddit is seeking more users and money from Google in exchange for a larger amount of data to feed its AI machine. This negotiation represents a new front in the struggle between Big AI and content providers as they try to harvest new revenue streams without compromising traffic and engagement. Reddit is eager for Google to help entice users to post in Reddit's forums, which would generate more content for tech giants to train their data-hungry AI models. The platform is considering a dynamic pricing-style arrangement for future licensing deals with companies like Google and OpenAI, where pay would be determined by how useful or important content is to the answers generated by AI tools. Executives believe current terms do not reflect the value of Reddit data to AI companies. Reddit is the top cited domain for AI tools like Perplexity and Google's AI Overviews, and adding "reddit" to Google search queries is a well-known hack to get more useful answers from search engines.

How chatbots and their makers are enabling AI psychosis

The rapid growth of AI chatbots, such as ChatGPT, has led to significant and disturbing effects on users. New York Times reporter Kashmir Hill has written about the impact on mental health, including a teenager's suicide and wrongful death suits against Character AI. Many tech and AI reporters have reported AI-induced delusions, which can be disturbing and not necessarily related to mental illness. Regulation of chatbots is currently off the table, leaving companies to decide how to address these issues. OpenAI CEO Sam Altman has proposed features to identify users' ages and prevent ChatGPT from discussing suicide with teens. However, it remains unclear if these guardrails will work, how they will be developed, and when they will be implemented. The question remains whether these changes will be effective and if they will be implemented effectively.

Used by Execs at Google and OpenAI

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