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Welcome to Eye on AI, with AI reporter Sharon Goldman. In today\u2019s issue: A new effort to bring sustainability back into the AI conversation\u2026Cerebras prices IPO above expected range\u2026Anthropic is now courting small business owners\u2026and court filing shows Sam Altman has an over $2 billion stake in companies that dealt with OpenAI.<\/p>\n
Over the past couple of years, public discussions about AI sustainability have largely been drowned out by headlines about the race for computing power, energy, and geopolitical advantage.<\/p>\n
But two experts are trying to bring green AI back into the conversation. Sasha Luccioni built a prominent profile over the past five years as AI & climate lead at open source AI company Hugging Face. Now, she and Boris Gamazaychikov, the former head of AI sustainability at Salesforce, say they plan to help organizations make AI sustainability practical and measurable \u2014 through rigorous studies examining AI\u2019s environmental impacts, research-driven guidance on AI strategy and procurement, and tools and frameworks that developers and business leaders can apply in the real world.<\/p>\n
Most companies still care about sustainability goals internally, even if the public discourse has shifted toward \u2018AI race\u2019 rhetoric and beating China, she said. The pair\u2019s newly-launched Sustainable AI Group will help businesses \u201cbetter understand the choices that they can make,\u201d she explained\u2014where models are running and what kind of models are used to help organizations decarbonize and \u201cde-risk their AI use as much as possible.\u201d\u00a0<\/p>\n
AI can be selected with sustainability in mind<\/p>\n
The problem, Luccioni said, is that today\u2019s AI, with its energy-hungry data centers and heat-intensive chips and servers that often require massive cooling systems, is exposing organizations to volatile costs, supply constraints, regulatory uncertainty, and growing pressure from both communities and employees. But, she added, the good news is that every layer of the AI stack can be designed and selected with sustainability in mind, whether that means choosing a fine-tuned small model over a frontier LLM, or running workloads in a data center powered by renewable energy rather than gas.<\/p>\n
\u201cI hear a lot of employees being like \u2018Hey, we\u2019re really worried about the environmental impacts of using AI in our work, so how do we use more responsibly?\u2019\u201d said Luccioni, who added that pushback and criticism of AI data centers has become a bipartisan issue both on social media and in government.\u00a0<\/p>\n
There is tremendous confusion, for example, about how much water today\u2019s AI data centers actually require. The reality, Luccioni said, is that cooling systems involve tradeoffs. \u201cEither you\u2019re wasting a ton of water or you\u2019re wasting a ton of energy.\u201d<\/p>\n
Traditional water-based cooling systems rely on evaporation, meaning significant amounts of water must continually be replenished, she explained. But closed-loop systems that recirculate water come with their own costs: they require additional energy to continuously cool the water as it moves through the system.<\/p>\n
Many use cases don\u2019t require massive models<\/p>\n
Either way, Luccioni said the data center debate relies on a narrative that everyone will be using massive, general purpose LLMs or generative AI models that need the huge data centers to run.<\/p>\n
But many enterprise use cases, she said, don\u2019t actually require massive frontier models. Instead, companies often need smaller, specialized AI systems tailored to specific tasks\u2014such as optimizing factory energy usage or helping employees search internal documents more efficiently. Those kinds of models can sometimes run locally or on-premise, reducing both energy use and data privacy concerns.<\/p>\n
Rather than assuming every problem requires a giant LLM, Luccioni said organizations should start by asking what they actually need AI to do and then choose the simplest, most efficient system capable of accomplishing that task sustainably.<\/p>\n
\u201cI think they should flip the question and say what are some things we could improve in our company? And maybe there\u2019s some smaller solution,\u201d she said. \u201cRight now, there\u2019s this FOMO, and people are rushing into it, but given the cost and commitment, it makes more sense for me to think about defining KPIs.\u201d\u00a0<\/p>\n
Luccioni said she has also become more convinced that market demand\u2014rather than criticism alone\u2014may be the strongest lever for change in the AI industry. If enough customers begin prioritizing renewable-powered infrastructure or asking tougher questions about carbon intensity and sustainability, she said, providers will eventually respond. Today, however, many companies still do not fully understand how their AI usage connects to broader sustainability commitments, and clearer communication between AI providers, enterprise buyers, and sustainability teams is still missing.<\/p>\n
\u201cCurrently the AI market doesn\u2019t distinguish between green and not green,\u201d she explained. \u201cWell, what if we get enough people to start factoring that into their procurement choices?\u201d\u00a0<\/p>\n
Luccioni acknowledged that efficiency gains alone may not solve AI\u2019s environmental challenges, as overall demand for compute keeps rising as organizations expand AI usage. Still, Luccioni said she remains cautiously optimistic. \u201cI feel we have enough existing interest, [including] Boris\u2019 work with clients at Salesforce,\u201d she said. \u201cI think there\u2019s a lot we can do.\u201d\u00a0<\/p>\n
With that, here\u2019s more AI news.<\/p>\n
Sharon Goldman
sharon.goldman@fortune.com
@sharongoldman<\/p>\n
FORTUNE ON AI<\/p>\n
Exclusive: Martha Stewart\u2019s new AI startup wants to manage your home before things break \u2013 by Lily Mae Lazarus<\/p>\n
Wells Fargo: AI is a \u2018euphoric\u2019 bubble and investors should ride it until it pops \u2013 by Jim Edwards<\/p>\n
Apple and Andreessen Horowitz alums raise $20 million to bring AI to \u2018real economy\u2019 businesses \u2013 by Jack Kubinec<\/p>\n
Encrypted texts reveal how Nvidia chips and U.S. tech are being smuggled to China and Russia \u2013 bt Amanda Gerut<\/p>\n
AI IN THE NEWS<\/p>\n
Cerebras prices IPO above expected range. CNBC reported that AI chipmaker Cerebras Systems priced its blockbuster IPO above its already-raised target range this week, raising roughly $5.6 billion in what has become the largest IPO of 2026 so far \u2014 a sign that Wall Street\u2019s appetite for AI infrastructure remains extremely strong. The company, which develops wafer-scale AI chips designed to compete with Nvidia in AI training and inference, reportedly saw demand exceed available shares by more than 20 times. Investors appear to be betting that the AI boom \u2014 and the need for massive computing power \u2014 is still in its early stages, with Cerebras joining a growing wave of AI infrastructure companies heading toward public markets.<\/p>\n
Anthropic is now courting small business owners. Anthropic is making a major push beyond large enterprises and developers by targeting small businesses with a new offering called \u201cClaude for Small Business,\u201d reflecting the next phase of the AI industry\u2019s commercialization strategy, TechCrunch reported. The new package integrates Claude with commonly used business software such as QuickBooks, PayPal, HubSpot, Canva, DocuSign, Google Workspace, and Microsoft 365, while offering prebuilt workflows aimed at finance, marketing, HR, and sales tasks. The move suggests AI companies increasingly see small and midsize businesses\u2014many of which have lagged in AI adoption despite representing a large share of the economy\u2014as a major untapped market for generative AI tools and agents.<\/p>\n
Court filing shows Sam Altman has an over $2 billion stake in companies that dealt with OpenAI.\u00a0According to Reuters, Sam Altman holds more than $2 billion worth of stakes in companies that have done business with OpenAI, adding fresh scrutiny to potential conflicts of interest as the company faces lawsuits, political pressure, and an expected IPO. The disclosures emerged during testimony in Elon Musk\u2019s lawsuit over OpenAI\u2019s conversion to a for-profit structure, where Altman said he recused himself from negotiations involving companies in which he held investments, including fusion startup Helion Energy and AI chipmaker Cerebras Systems. The report also notes that 10 Republican state attorneys general have urged the SEC to closely examine OpenAI\u2019s disclosures ahead of a potential public offering, while Congress has separately requested information about the company\u2019s safeguards around conflicts of interest.<\/p>\n
EYE ON AI NUMBERS46%<\/p>\n
That’s how many engineers say that, despite seeing improved productivity with AI coding tools, they also feel pressure to work faster than is sustainable and feel increasingly surveilled, according to new research from software delivery platform Harness that surveyed 700 engineering practitioners and managers.\u00a0<\/p>\n
This highlights what the company calls an \u201cAI productivity paradox\u201d inside engineering teams: while 89% of engineering leaders say AI coding tools have improved developer productivity, many developers say the reality is far messier.<\/p>\n
The report also found that developers now spend 31% of their time on largely untracked \u201cinvisible work\u201d such as reviewing AI-generated code, fixing bugs, and switching between tools. Meanwhile, 81% said AI coding tools have increased the amount of time spent in code review, underscoring growing concerns that companies may be overstating AI productivity gains while underestimating the human labor required to manage AI-generated output.<\/p>\n
AI CALENDAR<\/p>\n
June 8-10: Fortune Brainstorm Tech, Aspen, Colo. Apply to attend\u00a0here.<\/p>\n
June 17-20: VivaTech, Paris.<\/p>\n
July 6-11: International Conference\u00a0on Machine Learning (ICML), Seoul, South Korea.<\/p>\n
July 7-10: AI\u00a0for Good Summit, Geneva, Switzerland.<\/p>\n
Aug. 4-6:\u00a0Ai4 2026, Las Vegas.<\/p>\n
#sustainability #concerns #returning #data #center #energy #water #demands #grow<\/p>\n","protected":false},"excerpt":{"rendered":"
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