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Expert Ram Charan warns that AI adoption is essential for companies to prevent job losses.

A bright, sunlit corporate conference room where a diverse group of executives in suits sit around a sleek table. At the front, a large presentation screen reads “AI Adoption Saves Jobs – Ram Charan,” alongside a rising bar chart illustrating headcount preserved. On the table, open laptops display AI-driven task dashboards. Natural morning light streams through floor-to-ceiling windows, casting warm highlights and underscoring a sense of optimism and innovation.

AI adoption is critical for companies to avoid job losses, expert Ram Charan says - Fox Business

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AI adoption is critical for companies to avoid job losses, expert Ram Charan says

As concerns about the AI market begin to surface, investors seeking growth opportunities can turn to a specially curated list from Bank of America.

This past summer, stocks linked to artificial intelligence experienced significant volatility, influencing both major players in the tech field and companies benefiting from AI expenditures. Given this unpredictable environment, Bank of America’s clients are seeking ways to maintain involvement in growth-oriented investments while mitigating risks associated with AI-related fluctuations.

“Recent inquiries indicate a sense of AI fatigue among investors,” remarked Savita Subramanian, the bank's head of U.S. equity and quantitative strategy, in a client memo dated August 21. She noted that "growth investors are increasingly looking for alternatives outside the realm of direct AI investments."

To assist these investors, Bank of America has identified a selection of 16 stocks that promise a compelling balance between significant upside potential and lower correlation with the price volatility typical of major AI players like Nvidia, Alphabet, Microsoft, and Meta.

These selected stocks span the consumer staples, healthcare, and financial sectors within the S&P 500, areas that have not yet been heavily influenced by AI trends. Each one boasts projected earnings-per-share growth in the top tier of the S&P 500 over the next five years, and all have received a "Buy" recommendation from the bank.

The following is a list of these companies ranked by their expected earnings growth.

BofA recommends purchasing these 16 growth stocks to reduce reliance on the AI market.

Sunlight streams through a sleek office window onto a polished mahogany desk where a dark leather briefcase embossed with the Bank of America logo lies open. Inside, sixteen small glass vials—each topped with a sprouting seedling and tagged with a different stock ticker—are neatly arranged like precious gems. A handwritten note peeks out reading “Diversify Away from AI,” while soft natural light bathes the scene, suggesting organic growth and a fresh path beyond AI trading.

BofA Says Buy These 16 Growth Stocks to Diversify Away From AI Trade - Business Insider

- Bank of America identifies 16 stocks to diversify from volatile AI investments.  
- These stocks are in consumer staples, healthcare, and financials sectors.  
- The selected companies show high earnings potential and are "Buy"-rated.  

If you're starting to get a little uneasy about the AI trade, but still want exposure to stocks with explosive growth potential, Bank of America has a list for you.

AI stocks have been volatile this summer, with both hyperscalers and AI spending beneficiaries seeing large price swings. That's led Bank of America's clients to ask its researchers how they can keep their exposure to the growth theme while reducing their vulnerability to gyrations in the AI trade.

"Incoming requests suggest AI fatigue," Savita Subramanian, the bank's head of US equity and quantitative strategy, wrote in an August 21 client note, adding that "growth investors are looking for diversification away from pure AI."

In response, the bank compiled a list of 16 stocks that offer investors the best of both worlds: high upside earnings potential and low correlation with price movements of firms like Nvidia, Alphabet, Microsoft, Meta, Oracle, and others.

More specifically, the stocks fall within the S&P 500's consumer staples, healthcare, and financials sectors, which have generally not traded as AI plays yet. The stocks also have five-year projected earnings-per-share growth in the top quintile of the S&P 500 and are "Buy"- rated by the bank.

The 16 companies are listed below in descending order of their projected earnings growth.

BofA says buy these 16 growth stocks to diversify away from AI trade

Developers are increasingly looking to the ocean as a potential site for artificial intelligence infrastructure, with the aim of building underwater data centers that could enhance energy efficiency, improve cooling methods, and reduce the usage of fresh water and land compared to traditional facilities located on land.

My research delves into the effects of emerging technologies on society, organizations, and the environment, particularly focusing on artificial intelligence and the data centers that are essential for its development. Underwater data centers present a promising strategy for bolstering AI advancements.

However, relocating servers beneath the waves doesn't eliminate existing environmental challenges associated with data centers, including high energy consumption and carbon footprints. Furthermore, it raises concerns regarding the protection of marine ecosystems, prompts regulatory questions, and complicates maintenance and expansion efforts. The future viability of underwater data centers as sustainable alternatives hinges on addressing these economic, technical, and environmental hurdles.

In September 2025, an underwater data center was in the works at a Chinese shipyard, marking a new chapter in ocean-based AI infrastructure.

The exploration of submerged data centers began in earnest with Microsoft’s 2015 initiative to investigate their potential, benefits, and challenges. Notably, the company established a waterproof data center on the seabed near the Orkney Islands in Scotland in 2018, which housed 864 servers connected to the mainland via an undersea cable.

After two years of monitoring, Microsoft found that the failure rate of servers in its underwater facility was about one-eighth that of similar land-based systems. While the company continues to explore the reasons behind this anomaly, the current hypothesis suggests that the sealed underwater setting minimizes exposure to oxygen, humidity, temperature shifts, and physical disturbances during maintenance.

Despite these promising findings, Microsoft discontinued the project in 2024 and opted against further underwater facilities. Although the company did not specify the reasons, analysts suggest that regulatory issues, environmental permitting, and the need for quicker upgrades were likely factors. This pivot means that Microsoft is currently concentrating on expanding its land-based data centers, which are easier to scale and maintain.

Nevertheless, innovation continues elsewhere. China unveiled what could be the world’s first wind-powered underwater data center situated in Shanghai, which opened in June 2025 and commenced full commercial operations by May 2026. This $226 million facility employs seawater for cooling, avoiding the need to chill freshwater and resulting in at least 30% lower energy consumption compared to conventional data centers. Offshore wind turbines also contribute to reduced reliance on fossil fuels and lower carbon emissions.

In Japan, a novel approach is being tested with data centers placed on floating platforms that utilize seawater for cooling, optimizing conditions for solar and wind energy production, and minimizing land use. A floating data center in shipping containers commenced operations near Yokohama in 2025, powered by solar panels on the same platform, with battery storage for energy management. This trial is scheduled to run until March 2027.

Singapore is also advancing its floating data center capabilities, with infrastructure company Keppel beginning construction on a four-story floating facility in 2026, expected to be operational by 2028. This center will utilize seawater for enhanced cooling while preserving treated water resources and making efficient use of Singapore's available land.

Furthermore, Ulsan, South Korea, has embarked on plans for a large underwater data center set to accommodate over 100,000 servers, aiming to consume 30% less energy through seawater cooling techniques.

In Maine, DeepGreen Western Passage is proposing an innovative submersible AI data center in the Bay of Fundy. This facility will be powered by tidal turbines that harness the area's strong tidal currents.

Even land-based data centers are beginning to leverage seawater cooling, as seen with Portugal's SIN01 AI data center in Sines, which uses Atlantic seawater to cool its systems before returning it to the ocean.

The issue of land scarcity for AI is driving data centers to be located in the ocean.

A moody underwater scene: sleek, shipping-container style data center pods anchored to the ocean floor, shafts of warm sunlight piercing the water, their server lights glowing softly in the deep. Cables trail up toward a small research vessel on the surface, with kelp swaying around the pods—visualizing AI’s land scarcity forcing data centers into the ocean.

AI’s land problem is pushing data centers into the ocean - Fortune

- Developers are exploring underwater data centers to improve energy efficiency and reduce land use.  
- Microsoft discontinued its underwater project due to regulatory concerns and maintenance challenges.  
- Global initiatives include wind-powered, floating, and tidal data centers, using seawater for cooling.  

Some developers are now exploring the ocean as a new location for AI infrastructure in the hopes that underwater data centers could improve energy use and cooling efficiency while using less fresh water and land area than onshore buildings.

My research focuses on the societal, organizational and environmental implications of emerging technologies, particularly artificial intelligence and the digital infrastructure – including data centers – that supports its development and deployment. I see underwater data centers as a promising new approach for supporting the growth of AI.

But moving servers into the ocean does not make other underlying environmental challenges such as energy consumption and carbon emissions disappear. And it creates new concerns about harm to the marine environment, as well as questions about how these data centers can be regulated – and how companies can maintain and expand them if needed. Whether underwater data centers can become sustainable alternatives to traditional data centers depends on solving these economic, technical and environmental problems.

An underwater data center is under construction in a Chinese shipyard in September 2025. CN-STR / AFP via Getty Images

The rise of ocean-based AI infrastructure

In 2015, Microsoft launched a research project to explore the feasibility, benefits and challenges of underwater data centers. Part of that effort included setting up a waterproof data center on the seafloor near Scotland’s Orkney Islands in 2018. It contained 864 servers and was connected to shore by an underwater cable.

After two years, Microsoft reported that the servers in the underwater data center failed at about one-eighth the rate of servers in comparable land-based data centers. The company is still studying the possible reasons but hypothesizes that in a sealed underwater environment the equipment is less exposed to oxygen, humidity and temperature fluctuations – as well as less jostling from people working to replace broken components.

However, Microsoft ended the project in 2024 and chose not to build more underwater data centers. The company didn’t say why, but others’ analyses suggest the reasons could include regulatory concerns, including the need for environmental permits, as well as a desire for faster upgrades and replacements for the computer equipment inside.

Instead the company has focused on land-based data centers, which can be larger and easier to expand, and also easier to access to repair or replace equipment.

Others have moved ahead, though. China built what may be the world’s first wind-powered underwater data center in Shanghai. The facility launched in June 2025 and began full commercial operations in May 2026.

The US$226 million project uses seawater as a coolant rather than have to refrigerate fresh water, reducing the electricity required to cool the computers. It uses at least 30% less electricity than traditional data centers, and offshore wind turbines reduce reliance on fossil fuels and cut the data center’s carbon emissions.

Japan is testing a different approach: Data centers housed in containers on floating platforms at sea can use seawater for cooling, have unobstructed conditions for solar panels and wind turbines, and reduce demand for land. In 2025, a data center in shipping containers opened on a floating platform near Yokohama. Its power comes from solar panels installed on the same floating platform, with batteries providing energy storage. The test will continue through March 2027.

Singapore is also moving toward commercial-scale floating data centers. In 2026, infrastructure company Keppel began building a four-story floating data center, scheduled to open in 2028. The project will use seawater for cooling, reducing reliance on treated water and improving cooling efficiency. And the fact that it floats means it won’t take up any of Singapore’s limited land availability.

In 2025, Ulsan, South Korea, began planning an underwater data center that could house more than 100,000 servers and use 30% less power than land-based centers by using seawater for cooling.

In Maine, DeepGreen Western Passage has proposed a submersible AI data center in the Bay of Fundy, powered by tidal turbines designed to harness the area’s strong tidal currents.

Land-based data centers could also take advantage of seawater cooling. In Portugal, the SIN01 AI data center in Sines uses seawater from the Atlantic to cool its servers before returning it to the ocean.

AI’s land problem is pushing data centers into the ocean

Good morning. It has now been eight months since Nvidia announced its significant $20 billion acquisition of chip innovator Groq, which is dedicated to enhancing the efficiency of AI models post-training. The initial steps toward commercializing this venture have begun, and its outcomes may provide valuable insights into how well AI agents in corporate environments meet anticipated results.

What exactly is Groq? To provide some context, Nvidia's graphics processing units (GPUs) have long been the preferred choice for training expansive language models, a key component of the AI landscape in recent years. However, the emphasis is shifting toward the rapidly expanding field of inference, which involves leveraging these trained models to tackle real-world challenges and deliver solutions to users.

Nvidia's Groq Chip Will Influence AI Agent Functionality

Sunlight streams through a bright engineering workshop, illuminating a wooden bench where a green circuit board holds a gleaming chip labeled “Groq.” From the chip’s core, fine metallic tendrils and soft golden data streams rise and coalesce into a poised robotic arm that points toward code on a nearby laptop. A large Nvidia logo is embossed on a metal plaque behind, with scattered tools and hand-drawn schematics strewn around, evoking hands-on innovation and the promise of next-generation AI usability.

Nvidia’s Groq Chip Will Shape AI Agent Usability - WSJ

- Nvidia's $20 billion deal with Groq aims to enhance AI model usage post-training.  
- The collaboration's success could impact enterprise expectations for AI agents significantly.  
- GPUs remain key for training AI, while inference gains importance in current applications.

Groq founder Jonathan Ross and Nvidia CEO Jensen Huang, in tie, have become closer. David Paul Morris / Bloomberg; Tom Williams / CQ Roll Call / ZUMA Press

Good morning. It’s been eight months since Nvidia announced its $20 billion deal with chip upstart Groq, which is focused on speeding up the use of AI models after they have been trained. The commercialization of that deal has started, and its success may tell us a lot about the extent to which AI agents in the enterprise live up to expectations.

What’s a Groq? First, a bit of background. Nvidia’s graphics processing units, or GPUs, have been the go-to chips for training large language models. Training has been the main AI application for the past few years. The focus is increasingly on the quickly growing realm known as inference, or the use of trained models to solve problems and get things done for users.

Nvidia’s Groq Chip Will Shape AI Agent Usability

The Mac mini and Mac Studio serve different roles within Apple's desktop lineup; however, they both share a newfound popularity for local AI inference and software development. This surge in interest stems from their unified memory architecture combined with high-performance CPUs and GPUs built into their systems-on-a-chip.

Apple recently unveiled updated versions of both desktops, introducing two new processors: the M6, marking the debut of Apple’s first 2nm chip in the M-series for Macs, and the M5 Ultra, which now stands as the most powerful chip in the series, particularly well-suited for AI tasks.

These updates do not bring substantial new features; rather, they primarily offer an upgrade in specifications. Nonetheless, Apple is clearly positioning these refreshed models to highlight their capabilities for specific applications—use cases that were not initially contemplated during the design of earlier versions.

The increased interest in production inference surged following the release of macOS 26.2 last December. According to Apple, this update enabled "low-latency communication between Thunderbolt 5 hosts for applications such as distributed AI inference using MLX." Thunderbolt 5 is an ultra-fast wired connection, while MLX serves as an open-source framework aimed at optimizing machine learning workflows to leverage the M-series chips' unified memory effectively.

Since the update, both amateurs and professional developers have been connecting multiple Mac minis or Mac Studios to execute inference on expansive local language models, which far exceed the capabilities of a single mainstream device. This approach provides a viable alternative to high-end specialized hardware, particularly those reliant on dedicated Nvidia GPUs.

Apple's latest desktop computers are tailored for local AI development.

A bright, sunlit modern workspace by a large window: a sleek Apple desktop and monitor sit on a minimalist white desk, the big Apple logo prominent on the case. On the screen, streams of code transform into a glowing 3D neural‐network mesh rising off the display. Soft natural light casts gentle shadows across a potted succulent and an open notebook with AI algorithm sketches, evoking the promise of local AI development on Apple hardware.

Apple’s new desktop computers are designed specifically for local AI development - Ars Technica

- Apple announced new Mac mini and Mac Studio models with upgraded M6 and M5 Ultra chips.  
- These updates focus on improving AI inference and software development capabilities on both systems.  
- macOS 26.2 enhanced Thunderbolt 5 communication, boosting local AI workloads for developers.

The Mac mini and Mac Studio occupy two distinct points in Apple’s lineup of desktops, but lately, they’ve had something in common: They’re popular for local AI inference and software development thanks to the advantages of their unified memory architecture and the fast CPUs and GPUs on their systems-on-a-chip.

Today, Apple announced new iterations of both desktops, along with two new chips: the M6, the first 2nm chip in Apple’s M-series lineup for Macs, and the M5 Ultra, now the most powerful chip in the lineup for most things—especially AI workloads.

There aren’t any major new features for either machine. This is just a specs bump. But based on how Apple is presenting these refreshes, they’re leaning hard into those use cases, which weren’t even a thought when earlier iterations were first engineered.

The devices’ popularity for production inference took off after macOS 26.2 shipped last December. According to Apple’s release notes, 26.2 enabled “low-latency communication between Thunderbolt 5 hosts for use cases including distributed AI inference using MLX.” Thunderbolt 5 is a very fast wired data connection, and MLX is an open source array framework designed to help machine learning workflows take full advantage of the M-series chips’ unified memory.

Since then, both hobbyists and professional developers and researchers have been essentially daisy-chaining Mac minis or Mac Studios to run inference on local large language models that are much bigger than anything that could run a single mass-market device—providing an alternative to ultra-beefy specialized hardware featuring specialized Nvidia GPUs.

Apple’s new desktop computers are designed specifically for local AI development

Recently showcased at the Apple Store on 5th Avenue in New York City, the latest Mac Studio and Mac Mini models have officially hit the market, featuring enhanced specifications tailored for artificial intelligence applications. This rollout comes as more consumers are seeking out Apple computers for the creation and operation of AI agents.

The introduction of these updated Mac models illustrates Apple's strategic pivot towards desktop computing in the AI sector, especially as the company prepares to unveil new iPhone models. Apple is keen to establish its desktop line as a vital component in the AI development landscape, showcasing the power of its cutting-edge processors.

Many developers opt for the Mac Mini when utilizing software like OpenClaw to build their own AI agents, as it offers a local environment rather than relying on cloud computing. Moreover, the Mac Studio has emerged as a favorite among AI researchers for training and deploying local models.

In a recent press announcement, Apple emphasized the engineering of its iPhone and Mac chips, which feature specialized neural engines designed for model execution. The company also pointed out its innovative RAM architecture, which helps mitigate memory bottlenecks.

"With these frameworks and new chips, developers can run and fine-tune large AI models locally on their Mac," Apple stated.

The revamped Mac Mini now supports configurations with two cutting-edge chips, the M6 and M5 Pro. Notably, the M6 chip marks a significant advancement as it's the first from Apple built on a 2-nanometer process, provided by Taiwan Semiconductor Manufacturing Co.

Apple reveals updated Mac Mini and Mac Studio models featuring AI enhancements.

A minimalist desk bathed in warm morning sunlight holds side by side the sleeker new Mac Mini and Mac Studio, their metal surfaces subtly etched with glowing golden neural-network patterns that seem to pulse with AI power. Behind them, a single large Apple logo is embossed on a matte white wall, anchoring the scene in a clean, innovative workspace.

Apple announces new Mac Mini and Mac Studio models with AI upgrades - CNBC

- Apple launches new Mac Mini and Mac Studio models for AI applications and development.  
- Updated chips include M5 Pro and M6, enhancing performance for local AI models.  
- Apple's neural engines and RAM design improve efficiency for AI workloads on devices.  

The new Apple Mac Studio computer and Studio Display are displayed shortly after going on sale at the Apple Store on 5th Avenue in Manhattan, in New York City, New York, March 18, 2022.

With more consumers turning to Apple's computers for creating and running AI agents, the company is rolling out new Mac Mini and Mac Studio models with updated chips and other upgrades for artificial intelligence applications.

The announcement, a few weeks before Apple is expected to release new iPhone models, shows how desktop computers have become strategically important for Apple as a foothold in the AI development world, and as a showcase for the capabilities of its processors.

Developers using software like OpenClaw to create their own agents often prefer to run them on a dedicated Mac Mini computer instead of in the cloud. And Apple's Mac Studio is a popular choice for AI researchers who are experimenting with training and deploying local models.

Apple highlighted in Tuesday's announcement that it builds its iPhone and Mac chips with special parts called neural engines dedicated to running models, and that it uses a RAM architecture that eliminates some memory bottlenecks.

"With these frameworks and new chips, developers can run and fine-tune large AI models locally on their Mac," Apple said in the press release.

The Mac Mini can now be configured with two new chips, the M6 and M5 Pro. It's the first Apple computer with an M6-generation chip, which is manufactured on a 2-nanometer process from Taiwan Semiconductor Manufacturing Co .

Apple announces new Mac Mini and Mac Studio models with AI upgrades

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MELBOURNE, Australia (AP) — The music industry in Australia is set to prohibit tracks that are entirely generated by artificial intelligence from appearing on official charts, as growing generative technologies pose challenges to the livelihoods of musicians, a representative announced on Tuesday.

This decision coincides with the success of a variation of Madonna's classic hit “Like a Prayer,” produced by an Australian using AI-generated vocals and instrumentation. This track has spent an impressive 16 weeks in the Australian top 20, sparking discussions on the role of generative AI in music. It reached a high of number two on the Australian Record Industry Association’s (ARIA) top 20 singles chart in May and was positioned at fourth on Tuesday.

Starting next Monday, tracks created entirely by AI will be banned from the ARIA charts. However, music that is partially assisted by AI can still qualify, according to an ARIA statement.

To be eligible, songs must be predominantly human-created, needing human writers, performers for lead vocals, and primary instrumental contributions, among other criteria.

Additionally, AI-generated compositions will not qualify for the highly regarded ARIA awards.

Annabelle Herd, the chief executive of ARIA, expressed that these adjustments are intended to uphold the dynamic nature of the industry while emphasizing the importance of human artistry in a rapidly evolving technological environment. 

“The ARIA Charts will continue to serve as a clear reflection of Australia’s music consumption. However, creating a chart that rewards unlicensed AI output would undermine the very foundation of the recorded music industry we are dedicated to representing," Herd noted.

There are also stipulations that any music eligible for the charts must be produced through legal AI services, as unauthorized use of artists’ works has become an issue, with AI tools reportedly being trained on such music.

The Australian regulations align with the new guidelines introduced in July by the International Federation of the Phonographic Industry, based in London, which advocates for the global recording industry.

According to these international standards, for a track to qualify for official music charts, it needs to be “substantially human-made.”

Alexis Weaver, a composer and lecturer at the Sydney Conservatorium of Music, remarked to the Australian Broadcasting Corporation that discussions surrounding AI's integration in music are “exceptionally fraught and very emotional for a lot of musicians, leading to varied opinions.”

Weaver praised ARIA’s decision as a “wonderful step forward,” signaling the organization's commitment to prioritizing and valuing human creativity amid the challenges of utilizing AI. She acknowledged that while it can be difficult to navigate the current landscape without AI tools, there is a way to engage with them while maintaining control over the creative process.

Australia's music industry prohibits AI-generated songs from charts.

A darkened music chart room with a giant leaderboard of vinyl records and song titles; one entry bears a robotic waveform icon crossed out by a bold red prohibition circle and stamped “BANNED.” An Australian flag hangs beside the chart. Dramatic low-key lighting casts deep shadows around the scene.

Australia’s music industry bans AI songs from charts - AP News

- Australia’s music industry will ban wholly AI-generated tracks from official charts starting Monday.  
- AI-assisted music remains eligible if humans write and perform the primary elements.  
- The decision reflects a commitment to promoting human artistry amid evolving technology.  

Add AP News as your preferred source to see more of our stories on Google.

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MELBOURNE, Australia (AP) — Australia’s recorded music industry will bar tracks wholly generated by artificial intelligence from official charts as burgeoning generative technologies threaten artists’ livelihoods, a representative said on Tuesday.

The crackdown comes as a variation of Madonna’s pop hit “Like a Prayer” created by an Australian producer using AI-generated vocals and drums has spent 16 weeks in the Australian top 20, stoking debate about generative AI’s place in music. It peaked at number two on the Australian Record Industry Association’s top 20 Australian singles chart in May and remained in fourth place on Tuesday.

Wholly AI-generated tracks will be banned from the ARIA charts from Monday next week, but some AI-assisted music will remain eligible, an ARIA statement said.

Tracks can be eligible only if “humans wrote the song and performed the lead vocal and the primary instruments,” among other requirements, the statement said.

AI-generated music would also be ineligible for the Australian industry’s prestigious ARIA awards.

ARIA chief executive Annabelle Herd said: “These changes reflect our intent to remain dynamic and promote the human nature of artistry in what is — to say the least — a rapidly developing space.”

“The ARIA Charts will always remain a transparent measurement of the music Australia consumes, but a chart that rewards unlicensed AI output would undercut the very basis of the recorded music we exist to represent,” Herd added.

Eligible music must also be produced using legal AI services. Music was appearing on streaming services that had apparently been developed with AI tools trained on artists’ music without authorization.

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The Australian rules are in step with new principles released in July by the London-based International Federation of the Phonographic Industry. The federation represents the recording industry worldwide.

The international guidelines state that to qualify for official music charts, a track must be “substantially human made.”

Sydney Conservatorium of Music composer and lecturer Alexis Weaver told Australian Broadcasting Corp. the debate around AI in music was “exceptionally fraught and very emotional for a lot of musicians and so everyone will have a different opinion.”

Weaver applauded ARIA’s move as a “wonderful step forward” that sent a message ARIA wanted to “prioritize and value human creativity.”

“It can be quite hard to avoid AI tools in the current landscape,” Weaver said. “There is a way to use it while you’re still steering the ship and making the main creative choices.”

Australia’s music industry bans AI songs from charts

Taiwanese prosecutors have indicted nine individuals, including staff from Nvidia and Super Micro Computer, for their suspected roles in the unlawful exportation of artificial intelligence servers to China.

According to a statement issued on Monday by officials in Keelung, eight of the accused—one from Nvidia’s Taiwan unit and two from Supermicro’s Taiwan branch—face charges of breach of trust and document forgery related to the illicit shipment of advanced AI servers. Prosecutors detailed that 50 of these servers were transshipped through Indonesia, eight were sent via Japan, while the remainder went directly to China. Additionally, a separate shipment of 56 servers was intercepted at Taiwan's border.

Among the accused, three face charges of embezzlement. As the leading global producer of sophisticated chips utilized in AI, Taiwan plays a critical role in the semiconductor landscape.

The United States has imposed restrictions on the export of advanced silicon chips, notably those designed by Nvidia, to China, amid concerns regarding their application in artificial intelligence technologies. However, Taiwanese law does not currently classify these actions as criminal, prompting calls from lawmakers and experts to amend existing regulations, as authorities must rely on alternative laws to prosecute offenders.

In response, Nvidia emphasized that its employees are motivated to ensure compliance with relevant laws while affirming their commitment to assist Taiwanese authorities in resolving the allegations swiftly. Meanwhile, Supermicro noted that their cooperation with local authorities was instrumental in leading to the arrests of the indicted individuals, including two former employees of their Taiwanese subsidiary. The company asserts that it is not the target of this investigation and has not been implicated in any misconduct.

Prosecutors have indicated they are seeking prison sentences of up to five years for seven defendants, whom they allege acted with the intent of pursuing substantial profits through collusion in the illegal export of servers. They argued that such actions not only elevate corporate compliance costs but also significantly tarnish Taiwan’s international reputation. For the remaining two defendants who have admitted guilt and cooperated with the investigation, prosecutors are advocating for more lenient sentences.

In recent years, Taiwan has implemented stricter export controls aimed at preventing advanced technology from reaching China, which maintains a claim over the island, despite opposition from Taiwan’s government.

Nvidia and Supermicro staff face charges for exporting AI servers to China.

A moonlit shipping yard at a border checkpoint, two shadowy figures in work jackets loading heavy metal crates stamped with large Nvidia and Supermicro logos onto a flatbed truck. A Chinese flag flutters on a nearby pole behind a chain-link fence. High-contrast floodlights cast deep shadows across the asphalt, evoking an ominous, illicit operation.

Nvidia, Supermicro employees charged over export of AI servers to China - Al Jazeera

- Nine individuals, including Nvidia and Supermicro employees, indicted for illegal AI server exports.  
- Prosecutors allege breach of trust and document forgery in connection with the exports.  
- Taiwan tightens export controls to prevent advanced technology from reaching China amidst protests.

Share Nvidia, Supermicro employees charged over export of AI servers to China on social media

Taiwanese authorities have indicted nine people, including employees of Nvidia and Super Micro Computer, over their alleged involvement in the illegal export of artificial intelligence servers to China.

Eight of those indicted, including one employee of Nvidia’s Taiwan unit and two employees of Supermicro’s Taiwan unit, were charged with breach of trust and document forgery in connection with the illegal export of high-end AI servers, prosecutors in the port city of Keelung said in a statement on Monday.

Of those servers, 50 were transshipped through Indonesia, eight were sent via Japan and the rest were exported directly to China, according to prosecutors.

An additional 56 servers were seized at Taiwan’s border, the statement said.

Three of the defendants have been charged with embezzlement.

Semiconductor powerhouse Taiwan is the world’s largest producer of advanced chips used in AI applications.

The United States restricts exports to China of the most cutting-edge silicon chips designed by industry leader Nvidia and used to power artificial intelligence systems.

But it is not a criminal offence in Taiwan, a situation lawmakers and experts say needs to change, with Taiwanese prosecutors relying on other laws to go after offenders.

Nvidia said its employees have “every incentive to work diligently with customers to ensure compliance with all applicable laws”, adding it would work with the Taiwan authorities to help them “resolve the allegations as quickly as possible”.

Supermicro said its cooperation with Taiwanese authorities led to the arrests of the indicted individuals, including two former employees of its Taiwan subsidiary.

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“The Company continues to cooperate with Taiwan authorities, is not a target of their investigation and has not been accused of any wrongdoing,” it said in a statement.

Prosecutors said they were seeking sentences of up to five years in jail for seven defendants who were “driven by the pursuit of exorbitant profits” to collude in the illegal export of the servers.

“This not only increased corporate compliance costs but also severely damaged the nation’s international image,” the prosecutors said.

They said they were seeking more lenient sentences for the other two defendants who had confessed to all charges and cooperated with the investigation.

Taiwan has tightened export controls in recent years to keep advanced technology and know-how from reaching China, which claims the island as its own territory despite the strong objections of its government.

Nvidia, Supermicro employees charged over export of AI servers to China

Australia's music charts are establishing new guidelines to address the role of artificial intelligence (AI) in music creation. In a move spurred by public outcry over a recent AI-heavy cover of Madonna's "Like a Prayer," the official charts will no longer include music that is predominantly created by AI. The Australian Recording Industry Association (ARIA) announced this decision on Tuesday, stating that only tracks utilizing AI as a “supporting role” will remain eligible for chart placement.

Under these new regulations, any music deemed "wholly AI-generated" will be excluded from both the charts and the annual ARIA Music Awards, effective this Friday. ARIA plans to implement a labeling system introduced by various music industry entities last month to differentiate between fully AI-generated music and that which involves AI as a supplementary tool in the creative process.

This labeling system, developed by a coalition that includes the Recording Industry Association of America, categorizes works as either "AI-Generated," where AI is responsible for most or all creative elements, or "AI-Assisted," where AI contributes only minor expressive aspects. 

Representing ARIA, CEO Annabelle Herd emphasized the importance of adapting to AI's evolving role in music while ensuring that their charts do not validate art created entirely by machines that rely on the foundational work of human artists. “These adjustments reflect our commitment to keep pace with the changing landscape while celebrating the essence of human artistry in a rapidly evolving sector,” Herd remarked.

The decision by ARIA, which encompasses leading music labels like Sony Music Entertainment Australia and Universal Music Australia, follows a significant incident involving a Brisbane DJ whose AI-generated cover of "Like a Prayer" soared to popularity but faced backlash for its lack of traditional human input. DJ Josh Fawaz, who eventually acknowledged his extensive use of AI in the track, noted that it has amassed over 48.5 million streams on Spotify, currently sitting atop the ARIA Top 20 Australian Dance Singles Chart.

Fawaz has defended his use of AI as a legitimate creative tool, expressing that he views ARIA's new policies as a positive step forward. In a social media response, he recognized that perceptions of AI in music vary widely and celebrated the achievements of Australian artists on a global scale.

Experts in the field, like Oliver Bown from the University of New South Wales, highlight the imminent need for discussions surrounding the implications of AI in creative sectors. Bown cautioned that many commercial AI music platforms may be inappropriate in their use of training data, calling attention to the potential risks to artists. He advocated for responsible AI use, asserting that while it can facilitate artistic creation, there exists a troubling trend in leveraging AI for profit without ethical considerations.

Ivan Zavada, a senior lecturer at the University of Sydney, regarded these regulatory changes as essential for preserving authentic human musical creativity and performance. He pointed out the necessity for clearer legal guidelines surrounding AI's use in music, emphasizing the balance needed as AI becomes an integral component of music production in the near future. “This is an exhilarating yet concerning transition period in the realm of digital and electronic arts,” Zavada concluded.

Australia's music charts prohibit AI-generated songs following controversy over Madonna cover.

A moody, dimly lit backstage room: a large wall-mounted music chart under a single warm spotlight shows song titles, the line with “Madonna” crossed out in bold red. A hand wielding a rubber stamp slams down the word “BANNED.” The Australian flag hangs nearby, its colors muted in the shadows. A cracked vintage microphone lies on a dusty table, hinting at silenced voices.

Australia’s music charts ban AI-made songs amid backlash over Madonna cover - Al Jazeera

- Australia bans wholly AI-generated tracks from official music charts amid public backlash.  
- Tracks using AI as a "supporting role" can still enter the charts.  
- New rules aim to protect human creativity while adapting to AI's evolving role.  

Tracks that use AI in a ‘supporting role’ will still be eligible for inclusion in the official charts.

Australia’s official music charts have banned tracks mostly created by artificial intelligence (AI) following a backlash over a cover of Madonna’s “Like a Prayer” that relied heavily on the burgeoning technology.

“Wholly AI-generated” music will be excluded from the charts under the changes, while tracks that use AI in a “supporting role” will still be eligible, the Australian Recording Industry Association (ARIA) said on Tuesday.

AI-generated music will also not be considered for recognition at the annual ARIA Music Awards under the new rules, which are set to take effect on Friday.

ARIA said it would rely on a labelling system introduced by music industry groups last month to distinguish AI-generated tracks from those that use AI to complement human creativity.

Under the labelling rules announced by a coalition of organisations including the Recording Industry Association of America, tracks may be labelled “AI-Generated” or “AI-Assisted” depending on the level of human involvement in the writing and recording process.

Tracks are classed as “AI-Generated” if AI was used to create the “entirety or the primary portion of the creative elements of the recording” and “AI-Assisted” if the technology was used only for “some expressive elements”.

ARIA CEO Annabelle Herd said while the music charts should evolve to reflect the legitimate use of AI, they should not recognise music generated “wholesale” by technology that relies on other artists’ work.

“These changes reflect our intent to remain dynamic and promote the human nature of artistry in what is – to say the least – a rapidly developing space,” Herd said in a statement.

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ARIA, whose members include major music labels such as Sony Music Entertainment Australia and Universal Music Australia, publishes more than two dozen weekly music charts in Australia, including the top 50 singles and top 50 albums.

The industry association’s decision comes after a Brisbane-based DJ’s chart-topping cover of Madonna’s 1989 hit Like a Prayer attracted a backlash over its use of AI-generated vocals and drums.

Josh Fawaz last month belatedly acknowledged using AI on the track after music fans and producers raised suspicions that it was not produced by a human.

The cover has racked up more than 48.5 million listens on music streaming platform Spotify and currently ranks number one on the ARIA Top 20 Australian Dance Singles Chart.

Fawaz, who has defended the use of AI as a “tool” in his music, described ARIA’s new rules as a “great move”.

“I understand that AI in music isn’t for everyone and that’s fine. Good to see Aussie artists killing it globally!!” Fawaz wrote in a social media post responding to the announcement.

Oliver Bown, an associate professor at the University of New South Wales who researches the relationship between technology and art, said the impact of AI on creative industries such as music demands urgent attention.

“Many large commercial AI music generation companies have assumed they can scrape training data without permission, and so are potentially predatory on artists,” Bown told Al Jazeera.

“I believe people can do great artistic work using AI respectfully, but there is also a predatory phenomenon whereby you can just go fishing for plays and profits,” he added.

“Many organisations have developed rules about AI use and an increasing number see the need to ban full-AI works. I think this is the right thing to do.”

Ivan Zavada, a senior lecturer in composition and music technology at the University of Sydney, said the changes have been widely viewed as a “necessary step” to protect “genuine human musical creativity and performance”.

“More work needs to be done on the legal and intellectual property fronts to enable more trust and clarity in these tools,” Zavada told Al Jazeera.

“AI will be an essential part of standard music production in the very near future. We are living a very exciting yet concerning transition period in the digital and electronic arts.”

Australia’s music charts ban AI-made songs amid backlash over Madonna cover

Albanese has committed to ensuring that authors and musicians retain the autonomy to decide how their creations are utilized in AI training processes. He emphasized that it would constitute "theft" if artists were stripped of this control and not compensated for the application of their works.

AI-generated songs prohibited from Australia's music charts.

A dimly lit, moody record store interior at night: a clerk’s hand stretches bright red “BANNED” tape across a row of vinyl albums boldly stamped “AI,” while stacks of regular records loom behind. A small Australian flag sticker adorns the wooden shelf edge, casting soft, warm shadows across the scene.

Songs created by AI banned from Australia's music charts - BBC

- Albanese pledged that creatives can control how their work is used in AI training.  
- He emphasized that losing control over creative work would be considered "theft."  
- Compensation for the use of creative works in AI is a key priority.  

Albanese pledged that writers and musicians would be able to choose if and how their work was used in the training of AI, saying it would be "theft" if creatives lost that control and were not paid for its use.

Songs created by AI banned from Australia's music charts

In Pepper Pike, Ohio, Superintendent Lynn Campbell reassured parents in the Orange City School District that the rollout of artificial intelligence (AI) in schools will be implemented thoughtfully and at a measured pace. During a recent meeting of the Orange Board of Education on August 24, Campbell clarified popular misconceptions, stating, “We are not just opening up AI.” He emphasized that at the elementary level, particularly K-5, AI will be introduced in a way that supports teachers in curating their lessons, rather than being an overwhelming presence in the classroom. The deeper integration of AI into high school assignments will come later, as students will have more opportunities to utilize guidance and structure provided through these technologies.

The discussion about AI took place during a review of professional development initiatives for staff that occurred from August 17 to 18, right before students in grades 1-12 returned to school on August 20. Heather Miller, the new director of curriculum and instruction, highlighted the use of the AI platform MagicSchool, which is designed specifically for K-12 education to enhance lesson planning, grading, and classroom interactions. During the same professional development session, staff received insights from Kelly Fishman, the regional director of the Anti-Defamation League (ADL), on discrimination definitions and bias, marking the first of three training sessions for the year.

Looking ahead, Campbell mentioned that the upcoming session in November will delve into the implications of AI and social media as potential drivers of bias and prejudice, and how educators can proactively address these issues in their teaching. “AI brings with it a lot of greatness and a lot of concerns at the same time,” he reflected, expressing enthusiasm for developing staff proficiency with the MagicSchool platform.

Additionally, during these professional development days, staff were introduced to the Marzano framework for High Reliability Schools by Melanie Lewis Magee. The school board recently approved a contract with Marzano to further enhance professional development for educators and administrators.

On a separate note, resident Liz Gillmore voiced her concerns during the board meeting regarding how the district processes eligibility decisions related to a federal law protecting students with disabilities, specifically referencing Section 504. This law is designed to ensure that students with disabilities are not discriminated against and have access to the same educational opportunities as their non-disabled peers. Gillmore emphasized that good academic performance does not necessarily indicate that a student is unaffected by a disability and insisted that students should not be required to struggle before receiving necessary support. 

Gillmore urged the board to foster trust by promoting an environment where parents feel heard and respected, even when disagreements arise. She stressed the importance of open communication and constructive dialogues between families and the school, especially concerning accommodation requests.

In other developments, board President Beth Wilson-Fish announced the recent passing of Anita Tenney, a former teacher in the district who contributed significantly to the community and education. Tenney, a Pepper Pike resident, passed away on August 20 at the age of 76 and was remembered for establishing a successful early Spanish program at Moreland Hills Elementary School.

Lastly, the board approved a one-year contract for Julianne Cochran as an intervention specialist at Moreland Hills Elementary, effective August 17, and accepted the resignation of part-time bus driver Sabeen Chromjak-Harris, effective August 7.

Superintendent: Orange Schools taking initial steps into the realm of AI

A warm sunlit school corridor bathed in natural light, with orange-accented banners reading “Orange Schools” hanging overhead. In the center, a small, friendly robot taking its very first baby steps on polished tile, its mechanical hand outstretched for balance. At the edge of the frame, a lone superintendent silhouette in business attire holds a clipboard, watching proudly as the robot approaches a door labeled “AI Lab.”

Superintendent: Orange Schools entering into world of AI with ‘baby steps’ - Cleveland.com

- AI integration in the Orange City School District will be gradual and teacher-curated.  
- Parent concerns address eligibility decisions for students with disabilities under federal law.  
- The district hired Julianne Cochran as an intervention specialist after accepting a resignation.  

PEPPER PIKE, Ohio – Parents in the Orange City School District can rest assured that integration of artificial intelligence (AI) into the district’s schools will be gradual, Superintendent Lynn Campbell says.

“We are not just opening up AI,” Campbell told the Orange Board of Education Monday (Aug. 24).

“I know there’s a misconception that all the schools are going to use AI.”

At the K-5 level, AI integration is “really about the teacher curating specific things to show kids what it is,” Campbell said.

“It won’t be until high school that they will be pulling more into their assignments what guidance and structure they’re allowed to use,” he said.

“Who knows where it will go?

“We’ve got into it with baby steps, and we’re going to continue that because it impacts everything we do, or it stands to.”

The topic of AI was discussed during a review of the district’s professional development for staff that took place at the start of the school year Aug. 17-18.

Students in grades 1-12 began classes Aug. 20.

Heather Miller, the district’s new director of curriculum and instruction, said on Aug. 18, staff members looked at AI integration with MagicSchool “as another resource for staff.”

MagicSchool is an AI platform built specifically for K-12 schools, teachers and students to simplify lesson planning, grading and classroom activities.

Also on Aug. 18, staff members heard a presentation by Kelly Fishman, regional director of the Anti-Defamation League, which Miller said covered the common definitions of discrimination and addressed bias.

It was the first of three professional development sessions for district staff designed by the ADL for this school year.

Campbell said he believes the second session with the ADL in November will focus more on “how AI and social media are being used as tools and platforms to promote biases and hate and how our staff can get in front of that.”

“AI brings with it a lot of greatness and a lot of concerns at the same time,” he said.

“I’m excited as we continue to develop our staff’s knowledge of MagicSchool.”

On Aug. 17, Miller noted that staff members heard from Melanie Lewis Magee, an associate for Marzano Resources, about Marzano High Reliability Schools.

In 2024, the school board approved a contract with Marzano High Reliability Schools to provide additional professional development for staff members and administrators.

The Marzano framework defines five progressive levels of performance that a school must master to become a “high reliability” school.

Miller said the district received positive feedback from staff on both days of professional development.

Parent addresses law related to disabilities

Also on Monday, Pepper Pike resident Liz Gillmore, a parent in the district, expressed concerns to the board about how eligibility decisions related to a federal law regarding students with disabilities are being made and reviewed within the district.

She was referring to Section 504, a federal civil rights law that protects students with disabilities from discrimination and guarantees them equal access to education.

Governed by the U.S Department of Education under Section 504 of the Rehabilitation Act of 1973, it requires public schools to give disabled students the same opportunities as non-disabled peers.

“Good grades do not mean a student is unaffected by a disability,” Gillmore said.

“In many cases, they reflect extraordinary effort, extensive support and hours of additional work to keep pace with their peers.

“A student should not have to fail before receiving support.”

Gillmore said she’s also concerned that accommodation requests are sometimes viewed by the district’s administration “through the lens of potential advantages on college entrance exams, such as SATs or ACTs.”

“Accommodations do not provide advantage,” she said. “Their purpose is to remove barriers.

“They exist to allow students to demonstrate their knowledge and abilities on equal footing with their peers.”

Gillmore said she was asking the board to consider this question: “How do we build and maintain trust with families in our school?”

“Trust is built when parents believe they have been heard, respected and treated as partners, even when there are disagreements,” she said.

“Every parent should feel comfortable asking questions, seeking clarification, presenting additional information or challenging a decision they believe may affect their child’s educational opportunities.

“Those conversations should not be viewed as adversarial,” she continued.

“They’re often drivers of the very same goals shared by educators and administrators, ensuring that qualifying students receive the support necessary to reach their potential.”

A parent should never feel there are consequences for advocating for their child, Gillmore said.

“They should never feel that asking difficult questions will negatively affect their relationship with the school or create adverse consequences for their student,” she said.

“They should never feel that utilizing the review processes available to them will be viewed as disruptive, rather than constructive.

“As board members, your role is not to decide individual eligibility cases,” she continued.

“Your role is to ensure that the system, processes, culture and those responsible for administration promote fairness, consistency, transparency and trust.”

Gillmore said her request was simple: to review the district’s practices surrounding Section 504 eligibility determinations and appeals, “ensuring that decisions are based on the totality of evidence and that legitimate accommodation requests are evaluated on their merit and not through assumptions about testing advantages.”

Former Orange Schools teacher dies

In addition, board President Beth Wilson-Fish shared that Anita Tenney, a former Orange Schools teacher, died recently.

“I learned of Anita’s passing last week, and it hit our community very hard,” she said.

Tenney, a Pepper Pike resident, died Aug. 20. She was 76.

Wilson-Fish noted that Tenney was an Orange Community Education and Recreation instructor as well as a teacher at Moreland Hills Elementary School.

She credited Tenney with piloting the elementary school’s Spanish program around 2009 or 2010.

“The PTA brought Anita on to kind of try a Spanish program for our kids, beginning in the younger years,” she said.

“Obviously, her work there for that one year proved to be very successful, as the program has continued on.”

Wilson-Fish added that Tenney was a longtime community member and that her two daughters, Rebecca and Rachel, are graduates of Orange High School.

“She’ll be a true legacy here to us at Orange,” she said.

Tenney dedicated much of her professional life to education, with a particular passion for the Spanish language, according to her obituary on the Cleveland Jewish Funerals website.

A native of New York, she earned a master’s degree in Latin American literature from New York University and spent many years tutoring students of all ages in Spanish, the obituary stated.

A funeral service for Tenney was held Monday at Cleveland Jewish Funerals in Warrensville Heights.

New teacher hired

In other action, the board approved a one-year contract for Julianne Cochran, intervention specialist at Moreland Hills Elementary School, effective Aug. 17.

It also accepted the resignation of Sabeen Chromjak-Harris, part-time bus driver, effective Aug. 7.

Expert Ram Charan warns that AI adoption is essential for companies to prevent job losses.

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