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Back to mrpetzai.de Tuesday, November 3, 2026 Edition 13 · 7 stories
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AI-GENERATEDInference costs fall faster than any earlier transformative technology.

AI inference costs are falling by a factor of 13 per year, according to Epoch AI.

Epoch AI tracked the cheapest way to hit fixed benchmark scores over time and found a 47 percent quarterly cost decline. One example: a 75 percent score on GPQA Diamond cost 30 cents per question in January 2025 and just 0.04 cents in mid-2026.

ExecutiveSales
Markets & CapitalEpoch AI
AI-GENERATEDProposed safety rules in Washington would target closed models only.

The White House discussed voluntary safety testing in August that would apply only to proprietary AI models.

In August, White House officials met with leading AI companies to discuss voluntary safety testing limited to proprietary frontier models, leaving open models exempt. MIT research shows closed models capture 96 percent of industry revenue at six times the cost of open alternatives, even as open models close much of the performance gap.

Executive
RegulationMIT Initiative on the Digital Economy
AI-GENERATEDBeyond 250 kilowatts per rack, mixed air and liquid cooling stops being enough.

At high rack power, near total liquid cooling becomes a technical requirement for AI servers.

IEEE Spectrum outlines why hybrid air and liquid cooling reaches its limits above 250 kilowatts per rack. With a common 70/30 split, 75 kilowatts of heat still needs air cooling. Manufacturer CoolIT, an Ecolab company, presents systems that capture nearly all heat through liquid, enabling fanless server designs.

Executive
InfrastructureIEEE Spectrum
AI-GENERATEDJob cuts in industry and retail slow only slightly.

Germany's ifo employment barometer rose slightly to 95.1 points in September 2026.

The ifo Institute reports a slight increase in its employment barometer, from 94.8 to 95.1 points in September 2026. Survey head Klaus Wohlrabe says the labor market is stabilizing, while industry and retail keep cutting jobs.

ExecutiveHR
Work & Costifo Institut
AI-GENERATEDGerman business confidence brightens for the second month running.

The ifo Business Climate Index climbed to 89.9 points in September 2026, up from 88.8 in August.

Germany's ifo Business Climate Index rose to 89.9 points in September, after 88.8 in August. Companies rated their current situation more favorably and expectations improved further. Manufacturing and services both turned positive, while retail and construction stayed cautious.

ExecutiveSales
Markets & Capitalifo Institut
AI-GENERATEDDigital tools at work strain manual workers more than office staff.

A joint study by ifo and IAB links more workplace digitalization to more sick days among manual workers.

Employees in mostly manual jobs take about 20 percent more sick days per year when their workplace becomes more digitalized. Office and knowledge workers show no comparable link, according to a study by ifo, IAB and the University of Konstanz.

ExecutiveHR
Work & Costifo Institut
AI-GENERATEDHuawei's chip roadmap narrows little of Nvidia's lead by 2030.

Huawei will stay about four years behind Nvidia on AI chip performance through 2030, Epoch AI finds.

Epoch AI compared Huawei's Ascend roadmap with Nvidia's chip development. Huawei will produce roughly 25 times less total AI compute than Nvidia in 2026, and US export controls on manufacturing and memory bandwidth are unlikely to close that gap by 2030.

Executive
InfrastructureEpoch AI

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The United States sets the pace, Germany sets the frame. The other markets follow by actual AI activity.