On the campaign trail, Donald Trump said a lot of things about electric vehicles. He said he would “end the electric vehicle mandate on day one,” that EVs “don’t work,” and that they benefit China and Mexico while hurting American autoworkers.
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What does Trump’s election mean for EVs, Tesla, and Elon Musk?
/cdn.vox-cdn.com/uploads/chorus_asset/file/24533944/STK437_Electric_Vehicle_charge_EV.jpg?ssl=1 "What does Trump’s election mean for EVs, Tesla, and Elon Musk?")
But he has also closely aligned himself with Elon Musk, who runs the biggest EV company in the US. And he will likely have Musk continuing to whisper in his ear on important policy matters moving forward, even going so far as to promise to appoint the mercurial billionaire to a role in his administration.
So now that he’s the president-elect, what will he actually do that will affect the auto industry and its tenuous shift to electric vehicles?
First off, he said he would “rescind all unspent funds” in President Joe Biden’s Inflation Reduction Act, which includes many of the administration’s efforts to incentivize EV production in the US. Trump is likely to kill these incentives, everything from the EV tax credit to incentives for battery factories and mining.
What will he actually do that will affect the auto industry and its tenuous shift to electric vehicles?
It could prove to be an unpopular move, as the tax credits have been shown to work. The Biden administration claims that the tax credits have been successful, saving car buyers $1 billion in 2024 alone. The credit can now be applied at the point of sale, meaning shoppers can accept a discount on their EV purchase directly from dealers. And EV sales are continuing to increase, growing 11 percent year over year in the third quarter of 2024, according to Cox Automotive.
Eliminating these tax credits and incentives will make EVs more expensive to buy for many Americans, which will likely result in fewer vehicles sold. Manufacturers will have to adjust their plans to account for the less generous tax environment. Any factory that has yet to break ground is in jeopardy.
But making cars is expensive, and development cycles last for years. Automakers will be lobbying hard for regulatory certainty — whether Trump pays heed is entirely up in the air.
“Depending on how much [the individual tax credit] would be changed, it could be very detrimental to the North American automotive industry,” Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions, told Automotive News. “A lot of the demand for EVs currently is driven by that incentive, and that incentive feeds the manufacturers.”
Trump could also kill the National Electric Vehicle Infrastructure (NEVI) program to install more EV chargers. However, at least 14 percent of NEVI funds have gone directly to Tesla, which is the largest provider of EV charging in the US. It’s unclear whether Trump would axe a program that benefits his new BFF. But Musk has spoken disparagingly of NEVI, so it’s certainly a possibility.
Some Tesla investors say that while the new Trump administration is likely to be a negative for the auto industry, it could end up working out for Musk, who famously went all in for Trump, spending over $119 million to support his campaign.
“Tesla has the scale and scope that is unmatched in the EV industry and this dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment,” said Wedbush analyst Dan Ives, “coupled by likely higher China tariffs that would continue to push away cheaper Chinese EV players (BYD, Nio, etc.) from flooding the US market over the coming years.”
Eliminating these tax credits and incentives will make EVs more expensive to buy for many Americans
Trump is likely to attempt to roll back or weaken the Biden administration’s new tailpipe emission standards, which would slash greenhouse gas emissions in half by 2032. This is likely what he’s talking about when he rails against the “EV mandate.” Republicans have falsely portrayed the new standards as a ban on gas-powered cars. EVs would need to account for over half of new vehicle sales for automakers to meet these strict mandates.
If that happens, expect automakers to tap the brakes on EV production. That will likely result in Detroit’s Big Three — Ford, General Motors, and Stellantis — becoming less competitive globally, as the rest of the world continues to innovate and produce more EVs. It could also open the door for foreign automakers to come in and snap up the market. Tariffs could deter countries like China from flooding the US with cheap EVs, but that could be short-lived if China keeps making cheaper and cheaper EVs.
Trump’s plan to slap tariffs on a variety of imported goods, including foreign-made cars, could make many vehicles more expensive to buy. Shares in BMW, Mercedes-Benz, and Porsche all fell on Germany’s stock market on the news of Trump’s victory on Wednesday. Meanwhile, stock prices in the Big Three, as well as Tesla, surged in early trading.
California’s right under the Clean Air Act to enact stronger emission standards is also likely to fall in Trump’s crosshairs, as it did last time he was in office. This could become another rat’s nest of lawsuits and counter lawsuits. Trump will be spoiling for a fight.
Fighting — over tax credits, emission standards, federal spending, state’s rights, and more — will become a hallmark of this presidency and its approach to the auto industry, just as it was last time. But this time around, EVs are becoming mainstream, and a lot of the investments can’t just be unspooled. Climate change is a looming threat, and EVs are seen as an important tool to fighting it. This time, there’s just a lot more at stake.
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Xbox just allcapsmaxxed: Meet XBOX. This isn’t a joke; Microsoft appears to be actually rebranding Xbox to XBOX. Asha Sharma, Xbox CEO, ran a poll on X earlier this week, asking fans whether Microsoft should use Xbox or XBOX. The results were in favor of XBOX, and the company has now renamed its X account.
Curiously, the Threads and Bluesky accounts for Xbox haven’t been renamed yet, but if Microsoft is going ahead with a rebranding then I expect those will change soon. I asked Microsoft to comment on this potential Xbox rebranding and the company simply referred me to Sharma’s post.
The use of all caps for Xbox is a return to original form, though. Microsoft’s first Xbox logo for its console was all caps, and the company has favored using similar capped versions for the Xbox 360, Xbox One, and Xbox Series X / S console logos.
The apparent rebranding comes just a few weeks after Sharma scrapped Microsoft Gaming and renamed Microsoft’s gaming division back to Xbox. It’s part of Sharma’s continued promise of a “return of Xbox,” which has involved fan-focused console updates, a new Xbox logo, Game Pass pricing changes, and lots more in recent weeks.
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Artificial intelligence (AI) already shows up in your phone, your searches and plenty of apps you use every day. Now, some Silicon Valley investors are betting the machines behind those AI answers could one day run at sea.
A company called Panthalassa has raised $140 million in new funding to develop and deploy autonomous, floating AI computing nodes powered by ocean waves. The Series B round brings Panthalassa’s total funding to $210 million, a sign that investors are taking this ocean-based AI idea seriously. The round was led by Peter Thiel, the Palantir co-founder, and the company says the money will help complete a pilot manufacturing facility near Portland, Oregon. Panthalassa also plans to deploy its Ocean-3 pilot node series in the northern Pacific Ocean later in 2026.
Instead of building another giant AI data center on land, Panthalassa wants to place computing power out at sea. Ocean waves would generate electricity. Seawater would help with cooling. Onboard computing systems would process AI prompts and send the results back to land through low-Earth-orbit satellites.
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Panthalassa’s Ocean-2 prototype rides in open water during testing, giving a real-world look at the kind of floating wave-energy system behind the company’s ocean AI plan. (Panthalassa)
How AI data centers at sea could work
Panthalassa’s floating nodes are designed to capture wave motion and turn it into electricity. The company says it has spent a decade developing the technology behind its power generation, onboard computing and autonomous ocean operations. Its earlier Ocean-1, Ocean-2 and Wavehopper prototypes were tested in 2021 and 2024. Think of each node like a floating power station with AI hardware inside. Waves move the system. That motion helps drive a generator. The power then feeds the onboard chips.
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The company’s plan is to use those chips for AI inference. That is the part of AI where a model responds to your prompt after it has already been trained. In simple terms, it is what happens when you ask a chatbot a question and get an answer back. That makes the ocean plan a little easier to understand. Training massive AI models requires huge data movement and tight coordination. Answering prompts may be more realistic for a floating node, at least in some situations.
Why AI data centers are moving offshore
AI data centers need huge amounts of electricity. They also need space, cooling systems and local support from communities that may not want a massive facility nearby. Those problems have pushed companies to look for unusual answers. Ocean-based computing is one of them.
Panthalassa says its nodes would operate far from shore in wave-rich parts of the ocean. The goal is to use that wave energy directly onboard instead of sending the power back to land. “We’ve built a technology platform that operates in the planet’s most energy-dense wave regions, far from shore, and turns that resource into reliable clean power,” said Garth Sheldon-Coulson, Panthalassa’s co-founder and CEO.
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The ocean also offers cold surrounding water. That could help cool the chips onboard. Cooling is a major issue because data centers produce a lot of heat. Panthalassa is taking a different path from traditional land-based data centers. Instead of pulling more power from the grid, it wants floating nodes that generate their own electricity from waves.
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The Ocean-2 prototype sits inside a coastal facility, showing the size and shape of Panthalassa’s floating node before deployment at sea. (Panthalassa)
The satellite problem for ocean AI data centers
The ocean may help with power and cooling, but it creates another problem: connection. Traditional data centers rely on high-capacity fiber-optic connections because they need to move huge amounts of data fast. A floating node far out at sea may depend on low-Earth-orbit satellite links. That can work for some AI responses, but it may be slower and more limited than fiber.
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The challenge grows when multiple nodes need to work together. AI systems often depend on fast communication between chips, servers and storage. If those parts are floating in the ocean and talking by satellite, coordination gets harder. That means AI data centers at sea may not replace land-based data centers anytime soon. They may be better suited for certain AI tasks where the model can live onboard, and the response does not require constant back-and-forth with other machines.
Repairing floating AI nodes could be difficult
There is another practical question: What happens when something breaks? A land-based data center can send in technicians. A floating AI node in rough seas may need a ship, special equipment and the right weather window. That adds cost and delay.
Panthalassa says it is developing autonomous systems meant for harsh ocean conditions. Its press release says Ocean-3 testing is meant to demonstrate AI inference and refine manufacturing before commercial deployments in 2027. Still, the ocean is brutal. Saltwater eats away at equipment. Storms can turn a routine repair into a major operation. Constant motion also puts stress on the hardware. For this plan to work, Panthalassa will have to show that each node can keep running for years in harsh ocean conditions without frequent human repairs.
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Panthalassa’s Ocean-2 prototype is transported by barge, a reminder that building AI infrastructure at sea also means solving major deployment and maintenance challenges. (Panthalassa)
Ocean data centers have been tested before
Ocean data centers are not new. Microsoft experimented with underwater data center servers through Project Natick, including tests in 2015 and 2018. Those tests showed that sealed underwater servers could run reliably while using seawater for cooling, with Microsoft reporting a lower failure rate than comparable land-based systems. Microsoft later ended the project.
Chinese companies have also reportedly pushed ahead with underwater data center projects near Hainan and Shanghai. Keppel has explored floating data center designs in Singapore, where land constraints make the concept especially attractive. Panthalassa’s plan goes in a different direction. It combines wave power with onboard AI chips and satellite-based results. It also depends on floating nodes that would need to operate far from the kind of support a normal data center gets. That is why the idea is getting attention. It is also why skepticism is fair.
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What AI data centers at sea mean for you
For now, this will not change how your phone or computer works. You will not suddenly see a “powered by ocean waves” label on your favorite AI app. But the bigger picture affects everyone. AI needs an incredible amount of electricity. As more companies add AI tools to their products, they need more places to run those systems. That pressure can affect energy grids, water use, local battles over new data centers and even your utility bills over time.
Panthalassa argues its approach could reduce the need for new data centers and power plants on land. That could ease pressure on local communities and the grid, but the company still has to prove the system can work reliably at sea. If ocean-based AI moves beyond testing, it could also raise fresh questions about marine maintenance, environmental oversight and who controls computing infrastructure in international waters.
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Kurt’s key takeaways
Everyone is using AI on their phones and computers these days, but the heavy lifting often happens in huge data centers behind the scenes. That is why Panthalassa’s ocean plan is getting attention. The company wants to use waves for power and seawater for cooling. The hard part is proving that floating AI nodes can survive rough seas, limited satellite links and complicated maintenance. If Panthalassa can pull it off, ocean-based AI could become part of the tech we use every day. If it cannot, it may show just how difficult it is to keep feeding AI’s growing demand for power.
If this kind of ocean-powered AI takes off, would you worry about what these floating nodes could mean for our oceans? Let us know by writing to us at Cyberguy.com
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OpenAI announced yet another reorganization Friday, consolidating certain areas and making company president Greg Brockman the official lead of all things product.
In a memo viewed by The Verge, Brockman wrote that since OpenAI’s product strategy for this year is to go all-in on AI agents, the company is combining its products to “invest in a single agentic platform and to merge ChatGPT and Codex into one unified agentic experience for all.”
To do this, the company is making a suite of org chart changes, although it’s still operating under some of the same ones from last month. That’s when AGI boss Fidji Simo went on medical leave and OpenAI announced that Brockman would be in charge of product strategy and CSO Jason Kwon, CFO Sarah Friar, and CRO Denise Dresser would take control of business operations.
It’s all part of OpenAI’s recent strategic shift to focus on key revenue drivers like coding and enterprise and stop pouring resources into “side quests” ahead of its potential IPO later this year and amid investor pressure to turn a profit.
In Simo’s continued absence, Brockman’s role leading product strategy is now official, as well as the company’s “scaling” arm. Under Brockman will be four different pillars. The first is core product and platform, led by Thibault Sottiaux, who has been OpenAI’s engineering lead for Codex, and the second is critical enterprise industries, led by ChatGPT head Nick Turley. Third is the consumer pillar, such as health, commerce, and personal finance, which will be led by Ashley Alexander, who has been its healthcare products VP. The fourth pillar — core infrastructure, ads, data science, and growth — will be led by Vijaye Raji, who has been OpenAI’s CTO of applications.
Brockman wrote in the memo that OpenAI’s goal is now to “bring agents to ChatGPT scale, in order to give individuals and organizations significantly more value and utility from our products.”
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