TechCrunch : Flapping Airplanes on the future of AI: ‘We want to try really radi

Flapping Airplanes on the future of AI: ‘We want to try really radically different things’

There’s been a bunch of exciting research-focused AI labs popping up in recent months, and Flapping Airplanes is one of the most interesting. Propelled by its young and curious founders, Flapping Airplanes is focused on finding less data-hungry ways to train AI. It’s a potential game-changer for the economics and capabilities of AI models — and with $180 million in seed funding, they’ll have plenty of runway to figure it out.

Last week, I spoke with the lab’s three co-founders — brothers Ben and Asher Spector, and Aidan Smith — about why this is an exciting moment to start a new AI lab and why they keep coming back to ideas about the human brain.

I want to start by asking, why now? Labs like OpenAI and DeepMind have spent so much on scaling their models. I’m sure the competition seems daunting. Why did this feel like a good moment to launch a foundation model company?

Ben: There’s just so much to do. So, the advances that we’ve gotten over the last five to ten years have been spectacular. We love the tools. We use them every day. But the question is, is this the whole universe of things that needs to happen? And we thought about it very carefully and our answer was no, there’s a lot more to do. In our case, we thought that the data efficiency problem was sort of really the key thing to go look at. The current frontier models are trained on the sum totality of human knowledge, and humans can obviously make do with an awful lot less. So there’s a big gap there, and it’s worth understanding.

What we’re doing is really a concentrated bet on three things. It’s a bet that this data efficiency problem is the important thing to be doing. Like, this is really a direction that is new and different and you can make progress on it. It’s a bet that this will be very commercially valuable and that will make the world a better place if we can do it. And it’s also a bet that’s sort of the right kind of team to do it is a creative and even in some ways inexperienced team that can go look at these problems again from the ground up.

Aidan: Yeah, absolutely. We don’t really see ourselves as competing with the other labs, because we think that we’re looking at just a very different set of problems. If you look at the human mind, it learns in an incredibly different way from transformers. And that’s not to say better, just very different. So we see these different trade offs. LLMs have an incredible ability to memorize, and draw on this great breadth of knowledge, but they can’t really pick up new skills very fast. It takes just rivers and rivers of data to adapt. And when you look inside the brain, you see that the algorithms that it uses are just fundamentally so different from gradient descent and some of the techniques that people use to train AI today. So that’s why we’re building a new guard of researchers to kind of address these problems and really think differently about the AI space.

Asher: This question is just so scientifically interesting: why are the systems that we have built that are intelligent also so different from what humans do? Where does this difference come from? How can we use knowledge of that difference to make better systems? But at the same time, I also think it’s actually very commercially viable and very good for the world. Lots of regimes that are really important are also highly data constrained, like robotics or scientific discovery. Even in enterprise applications, a model that’s a million times more data efficient is probably a million times easier to put into the economy. So for us, it was very exciting to take a fresh perspective on these approaches, and think, if we really had a model that’s vastly more data efficient, what could we do with it?

This gets into my next question, which is sort of ties in also to the name, Flapping Airplanes. There’s this philosophical question in AI about how much we’re trying to recreate what humans do in their brain, versus creating some more abstract intelligence that takes a completely different path. Aidan is coming from Neuralink, which is all about the human brain. Do you see yourself as kind of pursuing a more neuromorphic view of AI?

Aidan: The way I look at the brain is as an existence proof. We see it as evidence that there are other algorithms out there. There’s not just one orthodoxy. And the brain has some crazy constraints. When you look at the underlying hardware, there’s some crazy stuff. It takes a millisecond to fire an action potential. In that time, your computer can do just so so many operations. And so realistically, there’s probably an approach that’s actually much better than the brain out there, and also very different than the transformer. So we’re very inspired by some of the things that the brain does, but we don’t see ourselves being tied down by it.

Ben: Just to add on to that. it’s very much in our name: Flapping Airplanes. Think of the current systems as big, Boeing 787s. We’re not trying to build birds. That’s a step too far. We’re trying to build some kind of a flapping airplane. My perspective from computer systems is that the constraints of the brain and silicon are sufficiently different from each other that we should not expect these systems to end up looking the same. When the substrate is so different and you have genuinely very different trade-offs about the cost of compute, the cost of locality and moving data, you actually expect these systems to look a little bit different. But just because they will look somewhat different does not mean that we should not take inspiration from the brain and try to use the parts that we think are interesting to improve our own systems.

It does feel like there’s now more freedom for labs to focus on research, as opposed to, just developing products. It feels like a big difference for this generation of labs. You have some that are very research focused, and others that are sort of “research focused for now.” What does that conversation look like within flapping airplanes?

Asher: I wish I could give you a timeline. I wish I could say, in three years, we’re going to have solved the research problem. This is how we’re going to commercialize. I can’t. We don’t know the answers. We’re looking for truth. That said, I do think we have commercial backgrounds. I spent a bunch of time developing technology for companies that made those companies a reasonable amount of money. Ben has incubated a bunch of startups that have commercial backgrounds, and we actually are excited to commercialize. We think it’s good for the world to take the value you’ve created and put it in the hands of people who can use it. So I don’t think we’re opposed to it. We just need to start by doing research, because if we start by signing big enterprise contracts, we’re going to get distracted, and we won’t do the research that’s valuable.

Aidan: Yeah, we want to try really, really radically different things, and sometimes radically even things are just worse than the paradigm. We’re exploring a set of different trade offs. It’s our hope that they will be different in the long run.

Ben: Companies are at their best when they’re really focused on doing something well, right? Big companies can afford to do many, many different things at once. When you’re a startup, you really have to pick what is the most valuable thing you can do, and do that all the way. And we are creating the most value when we are all in on solving fundamental problems for the time being.

I’m actually optimistic that reasonably soon, we might have made enough progress that we can then go start to touch grass in the real world. And you learn a lot by getting feedback from the real world. The amazing thing about the world is, it teaches you things constantly, right? It’s this tremendous vat of truth that you get to look into whenever you want. I think the main thing that I think has been enabled by the recent change in the economics and financing of these structures is the ability to let companies really focus on what they’re good at for longer periods of time. I think that focus, the thing that I’m most excited about, that will let us do really differentiated work.

To spell out what I think you’re referring to: there’s so much excitement around and the opportunity for investors is so clear that they are willing to give $180 million in seed funding to a completely new company full of these very smart, but also very young people who didn’t just cash out of PayPal or anything. How was it engaging with that process? Did you know, going in, there is this appetite, or was it something you discovered, of like, actually, we can make this a bigger thing than we thought.

Ben: I would say it was a mixture of the two. The market has been hot for many months at this point. So it was not a secret that no large rounds were starting to come together. But you never quite know how the fundraising environment will respond to your particular ideas about the world. This is, again, a place where you have to let the world give you feedback about what you’re doing. Even over the course of our fundraise, we learned a lot and actually changed our ideas. And we refined our opinions of the things we should be prioritizing, and what the right timelines were for commercialization.

I think we were somewhat surprised by how well our message resonated, because it was something that was very clear to us, but you never know whether your ideas will turn out to be things that other people believe as well or if everyone else thinks you’re crazy. We have been extremely fortunate to have found a group of amazing investors who our message really resonated with and they said, “Yes, this is exactly what we’ve been looking for.” And that was amazing. It was, you know, surprising and wonderful.

Aidan: Yeah, a thirst for the age of research has kind of been in the water for a little bit now. And more and more, we find ourselves positioned as the player to pursue the age of research and really try these radical ideas.

At least for the scale-driven companies, there is this enormous cost of entry for foundation models. Just building a model at that scale is an incredibly compute-intensive thing. Research is a little bit in the middle, where presumably you are building foundation models, but if you’re doing it with less data and you’re not so scale-oriented, maybe you get a bit of a break. How much do you expect compute costs to be sort of limiting your runway.

Ben: One of the advantages of doing deep, fundamental research is that, somewhat paradoxically, it is much cheaper to do really crazy, radical ideas than it is to do incremental work. Because when you do incremental work, in order to find out whether or not it does work, you have to go very far up the scaling ladder. Many interventions that look good at small scale do not actually persist at large scale. So as a result, it’s very expensive to do that kind of work. Whereas if you have some crazy new idea about some new architecture optimizer, it’s probably just gonna fail on the first rum, right? So you don’t have to run this up the ladder. It’s already broken. That’s great.

So, this doesn’t mean that scale is irrelevant for us. Scale is actually an important tool in the toolbox of all the things that you can do. Being able to scale up our ideas is certainly relevant to our company. So I wouldn’t frame us as the antithesis of scale, but I think it is a wonderful aspect of the kind of work we’re doing, that we can try many of our ideas at very small scale before we would even need to think about doing them at large scale.

Asher: Yeah, you should be able to use all the internet. But you shouldn’t need to. We find it really, really perplexing that you need to use all the Internet to really get this human level intelligence.

So, what becomes possible if you’re able to train more efficiently on data, right? Presumably the model will be more powerful and intelligent. But do you have specific ideas about kind of where that goes? Are we looking at more out-of-distribution generalization, or are we looking at sort of models that get better at a particular task with less experience?

Asher: So, first, we’re doing science, so I don’t know the answer, but I can give you three hypotheses. So my first hypothesis is that there’s a broad spectrum between just looking for statistical patterns and something that has really deep understanding. And I think the current models live somewhere on that spectrum. I don’t think they’re all the way towards deep understanding, but they’re also clearly not just doing statistical pattern matching. And it’s possible that as you train models on less data, you really force the model to have incredibly deep understandings of everything it’s seen. And as you do that, the model may become more intelligent in very interesting ways. It may know less facts, but get better at reasoning. So that’s one potential hypothesis.

Another hypothesis is similar to what you said, that at the moment, it’s very expensive, both operationally and also in pure monetary costs, to teach models new capabilities, because you need so much data to teach them those things. It’s possible that one output of what we’re doing is to get vastly more efficient at post training, so with only a couple of examples, you could really put a model into a new domain.

And then it’s also possible that this just unlocks new verticals for AI. There are certain types of robotics, for instance, where for whatever reason, we can’t quite get the type of capabilities that really makes it commercially viable. My opinion is that it’s a limited data problem, not a hardware problem. The fact that you can tele-operate the robots to do stuff is proof that that the hardware is sufficiently good. Butthere’s lots of domains like this, like scientific discovery.

Ben: One thing I’ll also double-click on is that when we think about the impact that AI can have on the world, one view you might have is that this is a deflationary technology. That is, the role of AI is to automate a bunch of jobs, and take that work and make it cheaper to do, so that you’re able to remove work from the economy and have it done by robots instead. And I’m sure that will happen. But this is not, to my mind, the most exciting vision of AI. The most exciting vision of AI is one where there’s all kinds of new science and technologies that we can construct that humans aren’t smart enough to come up with, but other systems can.

On this aspect, I think that first axis that Ascher was talking about around the spectrum between sort of true generalization versus memorization or interpolation of the data, I think that axis is extremely important to have the deep insights that will lead to these new advances in medicine and science. It is important that the models are very much on the creativity side of the spectrum. And so, part of why I’m very excited about the work that we’re doing is that I think even beyond the individual economic impacts, I’m also just genuinely very kind of mission-oriented around the question of, can we actually get AI to do stuff that, like, fundamentally humans couldn’t do before? And that’s more than just, “Let’s go fire a bunch of people from their jobs.”

Absolutely. Does that put you in a particular camp on, like, the AGI conversation, the like out of distribution, generalization conversation.

Asher: I really don’t exactly know what AGI means. It’s clear that capabilities are advancing very quickly. It’s clear that there’s tremendous amounts of economic value that’s being created. I don’t think we’re very close to God-in-a-box, in my opinion. I don’t think that within two months or even two years, there’s going to be a singularity where suddenly humans are completely obsolete. I basically agree with what Ben said at the beginning, which is, it’s a really big world. There’s a lot of work to do. There’s a lot of amazing work being done, and we’re excited to contribute

Well, the idea about the brain and the neuromorphic part of it does feel relevant. You’re saying, really the relevant thing to compare LLMs to is the human brain, more than the Mechanical Turk or the deterministic computers that came before.

Aidan: I’ll emphasize, the brain is not the ceiling, right? The brain, in many ways, is the floor. Frankly, I see no evidence that the brain is not a knowable system that follows physical laws. In fact, we know it’s under many constraints. And so we would expect to be able to create capabilities that are much, much more interesting and different and potentially better than the brain in the long run. And so we’re excited to contribute to that future, whether that’s AGI or otherwise.

Asher: And I do think the brain is the relevant comparison, just because the brain helps us understand how big the space is. Like, it’s easy to see all the progress we’ve made and think, wow, we like, have the answer. We’re almost done. But if you look outward a little bit and try to have a bit more perspective, there’s a lot of stuff we don’t know.

Ben: We’re not trying to be better, per se. We’re trying to be different, right? That’s the key thing I really want to hammer on here. All of these systems will almost certainly have different trade offs of them. You’ll get an advantage somewhere, and it’ll cost you somewhere else. And it’s a big world out there. There are so many different domains that have so many different trade offs that having more system, and more fundamental technologies that can address these different domains is very likely to make the kind of AI diffuse more effectively and more rapidly through the world.

One of the ways you’ve distinguished yourself, is in your hiring approach, getting people who are very, very young, in some cases, still in college or high school. What is it that clicks for you when you’re talking to someone and that makes you think, I want this person working with us on these research problems?

Aidan: It’s when you talk to someone and they just dazzle you, they have so many new ideas and they think about things in a way that many established researchers just can’t because they haven’t been polluted by the context of thousands and thousands of papers. Really, the number one thing we look for is creativity. Our team is so exceptionally creative, and every day, I feel really lucky to get to go in and talk about really radical solutions to some of the big problems in AI with people and dream up a very different future.

Ben: Probably the number one signal that I’m personally looking for is just like, do they teach me something new when I spend time with them? If they teach me something new, the odds that they’re going to teach us something new about what we’re working on is also pretty good. When you’re doing research, those creative, new ideas are really the priority.

Part of my background was during my undergrad and PhD., I helped start this incubator called Prod that worked with a bunch of companies that turned out well. And I think one of the things that we saw from that was that young people can absolutely compete in the very highest echelons of industry. Frankly, a big part of the unlock is just realizing, yeah, I can go do this stuff. You can absolutely go contribute at the highest level.

Of course, we do recognize the value of experience. People who have worked on large scale systems are great, like, we’ve hired some of them, you know, we are excited to work with all sorts of folks. And I think our mission has resonated with the experienced folks as well. I just think that our key thing is that we want people who are not afraid to change the paradigm and can try to imagine a new system of how things might work.

One of things I’ve been puzzling about is, how different do you think the resulting AI systems are going to be? It’s easy for me to imagine something like Claude Opus that just works 20% better and can do 20% more things. But if it’s just completely new, it’s hard to think about where that goes or what the end result looks like.

Asher: I don’t know if you’ve ever had the privilege of talking to the GPT-4 base model, but it had a lot of really strange emerging capabilities. For example, you could take a snippet of an unwritten blog post of yours, and ask, who do you think wrote this, and it could identify it.

There’s a lot of capabilities like this, where models are smart in ways we cannot fathom. And future models will be smarter in even stranger ways. I think we should expect the future to be really weird and the architectures to be even weirder. We’re looking for 1000x wins in data efficiency. We’re not trying to make incremental change. And so we should expect the same kind of unknowable, alien changes and capabilities at the limit.

Ben: I broadly agree with that. I’m probably slightly more tempered in how these things will eventually become experienced by the world, just as the GPT-4 base model was tempered by OpenAI. You want to put things in forms where you’re not staring into the abyss as a consumer. I think that’s important. But I broadly agree that our research agenda is about building capabilities that really are quite fundamentally different from what can be done right now.

Fantastic! Are there ways people can engage with flapping airplanes? Is it too early for that? Or they should just stay tuned for when the research and the models come out well.

Asher: So, we have Hi@flappingairplanes.com. If you just want to say hi, We also have disagree@flappingairplanes.com if you want to disagree with us. We’ve actually had some really cool conversations where people, like, send us very long essays about why they think it’s impossible to do what we’re doing. And we’re happy to engage with it.

Ben: But they haven’t convinced us yet. No one has convinced us yet.

Asher: The second thing is, you know, we are, we are looking for exceptional people who are trying to change the field and change the world. So if you’re interested, you should reach out.

Ben: And if you have another unorthodox background, it’s okay. You don’t need two PhDs. We really are looking for folks who think differently.

WSJ : Infosys, Anthropic Partner on AI for Telecom, Finance, Manufacturing

Infosys, Anthropic Partner on AI for Telecom, Finance, Manufacturing
Infosys shares rose 2.8% in India

Infosys 500209 4.34%increase; green up pointing triangle has agreed to work with Anthropic to develop and deliver artificial-intelligence services to businesses in complex, regulated industries.

The Indian information technology services provider said Tuesday that the collaboration will start in telecommunications and expand to financial services, manufacturing and software development.

Anthropic’s Claude models will be integrated into Infosys’s AI offerings to help businesses automate complex workflows and accelerate software delivery, Infosys said.

The companies will develop custom AI agents tailored to specific industries and business functions to independently handle multi-step tasks such as processing claims, generating and testing code, and managing compliance reviews, Infosys said.

Anthropic Chief Executive Dario Amodei said industry expertise is critical for an AI models to operate in regulated sectors. “Infosys has exactly that kind of expertise across important industries,” Amodei said.

Infosys shares recently rose 2.8% in India, outperforming peers. The rebound follows recent selloffs driven by concerns about AI-related industry disruption. The stock had fallen 17% this month through Monday.

“Our collaboration with Anthropic marks a strategic leap toward advancing enterprise AI,” Infosys Chief Executive Salil Parekh said.

WSJ : Starboard to Push for Big Shake-Up of Tripadvisor’s Board

Starboard to Push for Big Shake-Up of Tripadvisor’s Board
Travel-site operator’s stock recently fell after quarterly earnings missed analyst expectations

Activist investor Starboard Value plans to push for a shake-up of Tripadvisor’s TRIP -6.88%decrease; red down pointing triangle board, according to a letter reviewed by The Wall Street Journal and people familiar with the matter.

The details
Starboard is preparing to nominate a majority slate on Tripadvisor’s eight-person board.

Starboard’s stake now represents more than 9% of the company, according to the letter and people familiar with the matter.

The activist investment firm run by Jeff Smith plans to issue a letter announcing the plans to Tripadvisor’s board Tuesday morning, according to the people.

Tripadvisor’s namesake brand allows users to search and review hotels and other travel experiences. It also owns Viator, which lets users book tours and activities, and TheFork, a restaurant reservation tool.

Tripadvisor has a market cap of about $1.1 billion after the stock fell nearly 46% in the past year.

The context
The Journal reported in July that Starboard had built a stake valued at the time at about $160 million.

The firm has publicly agitated in recent months for Tripadvisor to explore a sale of TheFork, and to consider selling itself. Starboard has also argued the company should boost profitability at Viator and the namesake brand.

Tripadvisor’s shares tumbled last week after its fourth-quarter results missed Wall Street’s expectations. The company’s stock had already been pressured by investor fears that advances in artificial intelligence would hit software businesses especially hard.

It is relatively rare for activist investors to seek the majority of seats on boards. Starboard about a decade ago led a successful shareholder coup at Olive Garden owner Darden Restaurants and kicked off a turnaround.

WSJ : Activist Elliott Builds Big Stake in Norwegian Cruise Line

Activist Elliott Builds Big Stake in Norwegian Cruise Line
Investment firm has a stake of over 10% and could run a proxy fight

Activist Elliott Investment Management has built a more than 10% stake in Norwegian Cruise Line NCLH -7.57%decrease; red down pointing triangle and plans to push for changes to turn the struggling cruise-ship operator around, according to people familiar with the matter.

The details
Elliott, now one of Norwegian’s top investors, is planning to engage with the company to try to help fix its underperformance, the people said.

Norwegian is the fourth-largest cruise operator in the world by number of passengers, with a market value of roughly $10 billion. Its brands include the more premium Oceania Cruises and the luxury Regent Seven Seas Cruises.

Norwegian’s stock is down around 4% year to date as of Friday, after falling roughly 13% in 2025.

The Miami-based company has lagged behind competitors including Royal Caribbean and Carnival. Norwegian shares are among the worst-performing in the S&P 500 over the past five years, with the stock remaining near Covid-era levels, despite consumer demand recovering since the pandemic.

Elliott believes Norwegian could make changes to catch up to its rivals, the people familiar with the matter said.

For example, Norwegian’s peers have had success bringing in new customers to cruises through their private islands. Norwegian owns Great Stirrup Cay in the Bahamas, one of the biggest private islands in the industry, but industry-watchers say its development plans have been slow-going.

Elliott has been privately working with Adam Goldstein, the former president and chief operating officer of Royal Caribbean, as one potential board nominee at Norwegian, the people familiar with the matter said.

A deadline for shareholders to nominate director candidates ahead of Norwegian’s annual meeting closes next month.

The context
Elliott’s focus is on simultaneously improving Norwegian’s financial performance and the guest experience, the people familiar with the matter said. The investment firm believes Royal Caribbean has been successful at addressing both, and that Norwegian has achieved a successful turnaround in the past as well, the people added.

Late last Thursday, Norwegian announced that its Chief Executive Officer Harry Sommer was stepping down, effective immediately. He was succeeded by John Chidsey, the former CEO of Subway Restaurants. (Chidsey served on Norwegian’s board from 2013 to 2022, and rejoined a year ago.)

Norwegian shares tumbled more than 7% Friday after the news. “What might confuse investors is Norwegian is being run by someone with zero ties to the cruise industry,” analysts at Stifel wrote in a note to clients.

Norwegian said Chidsey has a record of “leading large global consumer-facing companies through strategic and operational transformation.” The company also has said it is focused on growing its fleet of ships and keeping spending in check.

Elliott has over $79 billion in assets under management, and has been behind many of the biggest and most high-profile activist campaigns. In 2024, the firm built a significant stake in Southwest Airlines and pushed for changes, with shares up around 90% since it first showed up. Last year, Elliott also won board seats after a fight at oil refiner Phillips 66.

WSJ : BHP Targets $10 Billion in Asset Sales to Help Fund Copper Expansion

BHP Targets $10 Billion in Asset Sales to Help Fund Copper Expansion
Copper now accounts for the largest share of its earnings

BHP Group cashed in on record silver prices by selling future output from a mile-high mine in the Andes, part of a plan to raise up to $10 billion from deals to help fund an expansion in copper.

BHP said Tuesday’s sale of its share of future silver production from the Antamina copper mine in Peru to Wheaton Precious Metals WPM 4.84%increase; green up pointing triangle for $4.3 billion is the most valuable silver-streaming agreement on record.

The transaction anchors the $10 billion goal that BHP outlined to investors three months after abandoning a takeover bid for Anglo American that was fueled largely by a desire to grow its copper business. BHP said the target also includes the sale of a stake in power infrastructure at its Australian iron-ore mines for $2 billion in December.

Assets that could be put up for sale include other power networks and desalination plants, said Chief Financial Officer Vandita Pant. She said BHP doesn’t have a deadline for additional deals.

“We have a lot of infrastructure around in our company which could be undervalued, or assets which are undervalued,” Pant said in an interview.

The silver deal, announced by BHP alongside a net profit of $5.64 billion for the six months through December and an improved dividend, pushed the global miner’s stock up more than 5% to an all-time high in Australia on Tuesday.

Silver prices surged to a record high on the Comex exchange in late January and are up 11% so far this year, helped by investors seeking assets considered safe havens during times of geopolitical or economic uncertainty.

“What is interesting is that the total Antamina valuation by brokers of BHP’s stake is around $4.5 billion,” Pant said. “We have unlocked $4.3 billion just on the silver portion of it, retaining fully our copper exposure and our zinc exposure to Antamina.”

She said selling unwanted assets gives BHP “financial flexibility to allocate these proceeds to the higher-returning uses, be it growth—attractive growth—or be it shareholder returns.”

BHP has long relied on iron ore for the bulk of its earnings, benefiting from huge demand as China’s economy rapidly expanded.

Now, however, it is reshaping its portfolio around copper, an industrial metal used heavily in electric vehicles, renewable energy and data centers. New supplies of the metal aren’t expected to keep pace with demand, leading to higher prices.

Illustrating this strategic shift, BHP said copper now accounts for the largest share of its earnings. It contributed about 25% five years ago.

BHP acquired Australian copper miner Oz Minerals for more than $6 billion in 2023. Last year, it spent roughly $2 billion to establish a joint venture with Lundin Mining to develop a large copper project on the border of Argentina and Chile.

It had hoped to turbocharge its copper business with a takeover of Anglo American, but repeated approaches—the most recent last November—were rebuffed.

BHP, already the world’s largest producer of the metal, has repeatedly said that it isn’t reliant on deals and that it already has plenty of copper reserves it can develop. However, executives have also acknowledged that resources are getting harder to find and extract.

BHP expanded on its copper options on Tuesday. They included updated studies from its Vicuna joint venture with Lundin. The miner said it is preparing for a potential final investment decision on the first phase of that development before the end of the year.

“For the discreet few opportunities that might come along that fit the very strict criteria that we have, we’ve got the wherewithal to pursue them, but we’re not feeling any burning need to,” Chief Executive Mike Henry said of possible copper deals.

Asked whether BHP could speed up some of its copper projects, Henry said it was difficult to accelerate expansion plans because of constraints related to technical studies and permitting.

FT : AI’s electricity demand is fuelling inflation, crimping consumer spending a

AI’s electricity demand is fuelling inflation, crimping consumer spending and slowing economic growth
Other than that, Mrs. Lincoln, how was the play?

Many AI companies insist that their energy-hungry data centres aren’t leading to higher electricity bills for ordinary people, with Anthropic the latest to promise to pick up the entire tab and shield consumers.

However, over in the real world, the actual data looks like this:

The chart is from Goldman Sachs, which has published a report exploring the macroeconomic spillovers from the soaring AI demand for electricity, which is becoming one of the binding constraints on the “bonkers” data centre building spree.

The headline numbers are pretty stark. Electricity prices went up 6.9 per cent last year, more than twice the 2.9 per cent headline rate of the Federal Reserve’s preferred measure of inflation, the Personal Consumption Expenditures index (PCE, among friends).

Electricity inflation varies a lot from state to state, and it’s hard to pin down exactly how much of it is due to AI, but Goldman’s economists suggest that it’s a meaningful factor — with the share of US electricity gobbled up by data centres roughly doubling just since ChatGPT was rolled out in 2022.

And this is just the start. Goldman’s analysts predict that data centres will account for almost half of all US electricity demand growth over the next four years. They are sceptical that consumers can be shielded from the cost of building all the necessary extra power infrastructure to bring data centres online and keep humming:

While we expect these [regulatory] policies to shift a significant share of future utility capex costs to the data center companies, it will be difficult to fully insulate households and non-AI businesses from price increases because

1) the policies often don’t cover all aspects of data center grid costs;

2) AI companies may choose locations that are more lenient on passing through higher prices to other customers;

3) it is difficult to pin down how much of a given increase in costs can be fully attributed to data centers; and 4) power prices can spike before the policies are implemented.

In our forecasts, we assume that data centers bear about two thirds of the excess capex costs required to service data centers (which we proxy by capex in excess of nominal GDP growth), an while households and businesses finance the other third. Within that third, we assume that consumers bear two thirds of the capex costs and non-AI businesses the rest.

Overall, the investment bank’s economists forecast that the nationwide consumer electricity inflation rate will remain about 6 per cent over the coming two years. If non-AI customers have to bear half the cost of all the necessary capex — as opposed to the third that is Goldman’s primary scenario — it will rise to 8 per cent.

Even the more modest scenario inevitably entails a drag on spending and economic growth.

Higher prices will likely lower disposable income growth, which will exert a drag on consumer spending.

Combining the headline and core inflation impacts from Exhibit 11, we estimate that higher electricity prices will lower consumer spending growth by 0.2pp on average in 2026-2027 . . . We expect lower-income households to see the largest declines in both income and spending because electricity accounts for a greater share of their spending.

. . . Our estimates suggest that higher electricity demand will exert a 0.1pp drag on GDP growth in 2026-2027, as lower consumption is partially offset by higher utility capex.

Of course, these effects aren’t huge, and shouldn’t be seen in isolation. Hyperscalers spending squillions on building a massive series of gargantuan data centres is definitely helping US economic growth. Over time, perhaps the productivity miracle that the likes of Kevin Warsh are using as an argument for rate cuts could prove to be disinflationary. Crazier things have happened.

Goldman’s estimate the drag on growth is net of the investment splurge by utilities, but it stresses that the effect is dwarfed by its optimistic views of the growth that AI will stoke. But those gains probably need to materialise soon, otherwise the backlash from people with bigger electricity bills could get tasty.

Anyway, Goldman Sachs has made the entire report public so you can read it at your own leisure attached.

FT : UK quietly shelves £110mn frictionless post-Brexit trade border project

UK quietly shelves £110mn frictionless post-Brexit trade border project
Halt to programme that had used Deloitte and IBM as contractors draws criticism from experts

The UK government has quietly shelved a programme to build a frictionless post-Brexit trade border, after spending £110mn on a contract with Deloitte and IBM for the project, drawing criticism from trade and tax experts.

Ministers in the previous Conservative government promised in 2020 to create the “world’s most effective border” by 2025 as part of post-Brexit plans to smooth the flow of goods between the UK and the rest of the world.

The “single trade window” (STW) was intended to create a one-stop digital platform for traders to submit import and export paperwork. More than 40 other countries operate such a system.

However, the project was paused in spring 2024 after encountering delays and higher than expected costs.

Government responses to Freedom of Information requests, seen by the FT, now show that there has been no money spent on the project since January 2025, with the UK Treasury writing that the programme had been “brought to an early closure”.

The halting of the STW comes as a string of delays and IT failures have hobbled the introduction of post-Brexit border arrangements, which the National Audit Office estimated in 2024 will cost £4.7bn.

The UK tax agency HM Revenue & Customs confirmed last month in separate FOIs that the project currently had no HMRC staff assigned to its delivery and that the contract with Deloitte and IBM “has been closed”.

Trade experts expressed disappointment at the development, warning that it would make trading more difficult for UK exporters.

Chris Southworth, secretary-general of the UK branch of the International Chamber of Commerce, said the STW had limited benefit to business as it focused on joining up disparate Whitehall systems rather than addressing the more important task of exchanging information with the private sector and other countries.

“The UK have wasted a lot of money on the single trade window. Pakistan did theirs for one-third of the price and are beginning to interoperate with China,” he said.

TaxWatch, the think-tank that made the FOI requests, also criticised the government for a lack of transparency over the status of the project.

Mike Lewis, director at TaxWatch, said: “For all intents and purposes the single trade window has been cancelled without HMRC or Deloitte and IBM having delivered anything after spending over £110mn on it. But neither HMRC nor ministers appear to wish to admit this.”

Even after the pause in 2024, the newly elected Labour government of Sir Keir Starmer had publicly promised that the single trade window would be delivered, including in a trade strategy policy document published in July 2025.

“It remains the government’s intention to deliver a single trade window,” the strategy said. “The government is committed to minimising administrative burdens and frictions experienced by businesses trading internationally.”

The government said on Monday that while the “delivery” element of the single trade window had been closed, Whitehall was still engaged in “policy” development around the programme.

However, four customs consultants actively working in the industry told the FT they had been given no indication by HMRC of any immediate intention to restart the STW.

“We’re hearing there’s no appetite to restart it,” one said. “Our interpretation is that it’s cancelled, at least for this parliament,” said another.

The halt to the programme is likely to lead to increased costs for traders. The National Audit Office reported in 2024 that new sanitary and security controls at the border would cost traders £469mn a year.

However, this estimate was dependent on the delivery of the STW, without which costs would be roughly £983mn a year, the watchdog estimated.

A government spokesperson said the government “remain committed to delivering a single trade window, recognising its potential benefits to trade.

“Policy development is ongoing and focused on designing a service that delivers genuine value to businesses and strengthens the UK’s border system,” the spokesperson added.

Deloitte declined to comment. IBM did not respond to a request for comment.

FT : Big Oil faces new investor demand: growth

Big Oil faces new investor demand: growth
After years focused on payouts and discipline, energy majors are being pressed on the longevity of their reserves

Big Oil executives are under pressure to spell out their plans for future growth after years of cost-cutting and heightened shareholder returns as investors fretted about peak oil demand.

With the transition to clean energy now expected to be slower, extending the need for fossil fuels, ExxonMobil, Chevron, Shell, BP and TotalEnergies are being asked to prove the longevity of their reserves and the strength of their project pipelines.

After oil prices fell 20 per cent last year and with a further oversupply of crude expected in 2026, shareholders this earnings season asked if companies should be using the opportunity to build up their assets.

“We think investors are likely to focus more on growth than distributions going forwards,” Biraj Borkhataria at RBC Capital said in a note. The ability to build reserves of crude to replenish production “was a key theme this quarter”, he wrote.

The pressure was most acute at Shell, which disclosed that its reserves had fallen to 7.8 years of production, down from nine years and the lowest level since 2013.

The first question to chief executive Wael Sawan on the results call captured the mood: “How can you counter the market concerns that the business is simply shrinking?”

Companies across the sector are pulling three levers to ensure future growth: stepping up exploration, striking access deals with resource-rich countries, particularly in the Middle East, and pursuing mergers and acquisitions.

“They are going to have to use all three quite actively,” said Tom Ellacott at consultancy Wood Mackenzie. “And they need to work their base assets harder as well.”


At the front of the pack sits ExxonMobil, which has the industry’s most expansive growth narrative and one of its deepest portfolios.

Chief executive Darren Woods said the company continued to set production records in the Permian Basin and saw no imminent peak. In Guyana, where Exxon is leading one of the largest offshore oil developments in history, he said the group was delivering “results never before seen in our industry”.

Chevron is also leaning into growth. Following its $53bn acquisition of Hess, which also gives it a stake in the Guyana project, the company reported record production last year and forecast output growth of 7-10 per cent in 2025.

The two US majors enjoy structural advantages. They trade at higher valuations than their European peers and have stronger balance sheets, giving them greater firepower for acquisitions.

“That sort of M&A capacity is a strategic advantage, especially if we see another downturn,” said Ellacott.

Borkhataria said the American groups may also enjoy a Trump boost, particularly in the wake of the US intervention in oil-rich Venezuela.

“The US administration’s more aggressive approach could lead to resource acquisition opportunities not available to European peers,” he said.

Shell’s thinner reserve base partly reflects past disposals, including the sale of its US shale business to ConocoPhillips in 2021 and its exit from Guyana in 2014. “If I were to look back, I wish we had not walked away from Guyana when we did. That is the honest truth,” Sawan told analysts.

Having prioritised cost-cutting and returning 40-50 per cent of cash flow to shareholders, Sawan is now focused on closing what he calls a “resource gap”.

“We are hungry for growth, don’t get me wrong, but we want to do it on the right terms,” he said, adding that Shell did not want to simply buy assets but to focus on oilfields where it can bring its expertise.

“I can tell you, I have a lot of opportunities coming to my desk on a regular basis,” he said, adding: “We have a few years to be able to fill that gap.” 

Sawan — who appointed a new head of exploration, Eugene Okpere, on taking office — said Shell had yet to find “the bigger plays that allow us to potentially create big new hubs. That is the space we need to continue to work on to improve”. 

At rival UK oil major BP there was a flurry of activity last year, including the discovery of Bumerangue, a field in Brazil that the company believes could contain as much as 8bn barrels of oil and other liquids. BP’s joint venture with Italian oil major Eni on Friday announced a find in Angola that it said could contain 500mn barrels of oil.

As it sought to play up its hand, BP’s executives used the word “growth” 30 times in a call with analysts, and explained that it had suspended its $6bn-a-year share buyback programme partly to give it more flexibility to invest in new projects. 

“The team has created the best set of opportunities from an upstream exploration and access perspective that we have seen for a long time,” said interim chief executive Carol Howle. “We believe we’ve got a differentiated portfolio versus our competitors and our challenge is deciding how we access it.”

Total struck the most confident tone. According to data from AlphaSense, it referenced “growth” more often than any of its peers during its results presentation and emphasised that its reserves had consistently increased faster than production. “We maintained 12 years of reserves so we are comfortable to feed growth beyond 2030,” said chief executive Patrick Pouyanné. “Clearly we are a growing company.”

FT : Danaher closes in on nearly $10bn deal for medical device maker Masimo

Danaher closes in on nearly $10bn deal for medical device maker Masimo
Technology company known for pulse oximeters is in a long-running intellectual property dispute with Apple

US life sciences manufacturer Danaher is closing in on a nearly $10bn deal to buy medical technology company Masimo, two years after an activist investor overhauled the device maker’s board.

A deal for the California-based Masimo could be announced as early as Tuesday provided it does not hit any last-minute snags, according to people familiar with the matter.

The acquisition values Masimo at around $9.9bn, the people said. That represents a premium to its nearly $7bn market capitalisation at Friday’s close.

Danaher, based in Washington, is a sprawling life sciences conglomerate, making laboratory equipment essential to drug discovery and diagnostics for a wide range of diseases. It has been an aggressive M&A dealmaker over the past 25 years.

Masimo is a leading manufacturer of pulse oximeters, which measure blood oxygen levels. The company has challenged Apple over breaching its patents in a long-running intellectual property dispute over the Apple Watch.

Two years ago, hedge fund Politan Capital Management successfully ran a proxy contest that ousted Masimo’s founder, Joe Kiani, as board chair. He quickly resigned as chief executive.

Kiani still owns approximately 5 per cent of the company’s shares, according to S&P Capital IQ. Politan, founded by the Elliott Management alumnus Quentin Koffey, owns nearly 9 per cent of Masimo.

The Masimo deal would be Danaher’s biggest acquisition in more than half a decade since its $21.4bn takeover of Cytiva, the biologics manufacturing arm previously owned by GE Life Sciences.

Masimo shares are down 50 per cent over the past five years and the group has struggled since it acquired Sound United, a wearables company, for $1bn in 2021.

Politan made the purchase of the company with its portfolio of audio brands such as Bowers & Wilkins a key part of its activist campaign, arguing that it strayed from the company’s core area. Politan eventually secured four board seats. In 2025, Masimo sold the wearables group for just $350mn.

Danaher’s stock surged during the Covid-19 pandemic, but has struggled since. It is down 28 per cent from its all-time high in September 2021, giving it a market value of $150bn at Friday’s close.

Its last sizeable acquisition was its $5.7bn takeover of UK life sciences group Abcam in 2024. Danaher has spun out several publicly listed multibillion-dollar affiliates over the years such as Veralto, Envista, and Fortive.

Danaher and Masimo did not immediately respond to requests for comment.

FT : EVs must be 70% made in the EU to qualify for state support, Brussels says

EVs must be 70% made in the EU to qualify for state support, Brussels says
Draft legislation on local content by European Commission seeks to protect bloc’s manufacturing industries

Brussels is planning to force electric-vehicle manufacturers benefiting from state support to ensure that at least 70 per cent of the components in their cars are made in the EU, as it seeks to protect the bloc’s industries from intense Chinese competition.

The European Commission will also stipulate that at least 25 per cent of products made from aluminium and 30 per cent of plastics used for windows and doors in the construction sector must be manufactured in the EU in order to qualify for government subsidies or benefit from public contracts, according to draft legislation seen by the Financial Times.

The targets on local content for the EV sector and heavy industries including construction are part of a wider effort by the EU to try to save its €2.6tn manufacturing base.

Manufacturing industries in the EU have been closing plants and laying off workers in their thousands as a result of low-cost Chinese competition, high energy prices and the expense of complying with the bloc’s stringent climate initiatives.

The Industrial Accelerator Act, which will be published by the Commission on February 25, is aimed at protecting the EU’s industries, partly by requiring public procurement tenders to take account of carbon emissions.

The draft legislation says that new EVs, hybrids and fuel cell cars benefiting from state schemes to help motorists purchase vehicles, or bought or leased for public bodies, must be assembled within the EU and have at least 70 per cent of their components, excluding the battery, manufactured in the bloc, when measured by price.

The legislation also says that several main components of a vehicle’s battery need to originate within the EU. Some automotive officials have said this requirement will be challenging given the EV industry’s heavy reliance on China for battery technology as well as materials.

The 70 per cent components threshold is marked in square brackets in the draft legislation seen by the FT, meaning that it is still up for discussion and could be subject to change.

The Commission declined to comment.

The legislation has been the subject of heavy lobbying by industries. Those in clean technology sectors, such as renewable energy or batteries, and car parts suppliers, have been supportive of local content rules.

Carmakers, however, have been split, with BMW warning that the rules would add unnecessary expense and bureaucracy, while VW and Stellantis last month called for a “made in Europe” public scheme that would incentivise manufacturers to use local content in their vehicles.

Other carmakers have called for a “made in Europe” local content rule that is broadened beyond the EU to include manufacturing hubs such as Turkey and the UK, as well as big trading partners such as Japan.