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Alibaba researchers devise efficient GPU pooling system, reducing GPU use 82%

Drastically reducing the amount of GPUs needed for running AI models could have big consequences for the scale of huge data centers, while benefiting smaller organizations. It also could reduce demand for pricey new GPUs from Nvidia.

Jon Keegan, Matt Phillips

Researchers at Peking University and Alibaba have announced a new system that can drastically reduce GPU demand, by efficiently “pooling” computing across multiple models rather than assigning each model its own GPU.

Named “Aegaeon,” the system addresses a problem with assigning computing resources to the many AI models on the market: dedicating a set of GPUs to a specific model leaves precious processing cycles underutilized when the model is not receiving a lot of requests.

In the research paper, the authors noted that a small number of popular models, like Meta’s Llama, DeepSeek, and Qwen, dominate utilization, and 17.7% of GPUs serve only 1.35% of requests. That’s a lot of wasted GPU cycles.

The researchers use a system of “token-level auto-scaling,” which assigns computing at a granular level using tokens (the smallest unit of text an LLM processes, sometimes only a few letters) rather than at the “request” level, which might see one heavy computational task holding up the queue.

Using the Aegaeon system, in Alibaba Cloud’s production tests, the company was able reduce GPU demand by 82%. What would normally take 1,192 GPUs, the researchers were able to do with just 213 Nvidia H20 GPUs.

The consequences of this system could be significant. If AI companies can do more with less, maybe those massive data centers running AI models don’t need to be so huge, and maybe they don’t have to find as many complicated financing schemes to pay for all those GPUs.

But this also means that smaller players could be more competitive, especially in places like China, where export controls are making the most powerful processors hard to come by.

It could also be bad news for Nvidia, though Aegaeon is built on Nvidia software. And on Monday, some analysts on Wall Street pointed to the reports on Aegaeon as a reason for the day’s weakness in some previously high-flying data center stocks.

Oracle was down sharply for the second straight session. Hard disk drive makers Seagate Technology Holdings and Western Digital — big beneficiaries of the data center trade this year — also declined, as did AI energy plays Constellation Energy and Vistra.

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Gold Tesla Cybercabs are piling up, but they’re not picking up passengers yet

Low-volume production started in April. Now people are noticing them more and more in the wild.

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Anthropic pulls Fable and Mythos access worldwide after Trump administration bars their use by foreign nationals

Only days after releasing two versions of its next-gen AI model, Anthropic has disabled them for users worldwide.

Anthropic says it received a Friday night order from the Trump administration to suspend access to the models for any foreign national (anywhere in the world) — a group that included some Anthropic employees. In response, the company turned off access to everyone.

Last week, the company released to the public its much-anticipated Claude Fable 5 model (and its restricted version Claude Mythos 5, which is still being tested with trusted partners). Anthropic said in a blog post announcing the action that officials cited national security concerns with the new models, while offering few specific details.

The post said that the government gave the company “verbal evidence of a potential narrow, non-universal jailbreak” of the public Fable 5 model. A jailbreak is a means by which users can evade restrictions built into the code to unlock prohibited functionality. Anthropic downplayed the significance of the attack, and said other major models, such as OpenAI’s GPT-5.5, could also be affected by the technique described.

Fears of these first Mythos-class models being misused are running high, after Anthropic warned the cybersecurity world in May that the advanced cyber capabilities of Mythos have rapidly discovered thousands of vulnerabilities in ubiquitous software, leading to the decision to restrict the full version of the model to a close group of trusted partners for testing.

This morning, Axios reported that Anthropic technical staff have flown to Washington to meet with White House officials to resolve the issue.

The Wall Street Journal is reporting that the Trump administration’s decision to take action against Anthropic was prompted by discussions that Amazon CEO Andy Jassy had with officials, including Treasury Secretary Scott Bessent. According to the report, Amazon researchers said they had been able to evade some of Fable 5’s security restrictions using specific prompts. Amazon is a major investor in Anthropic.

Anthropic is currently suing the US government to fight the Pentagon’s blacklisting of the company on national security grounds.

Last week, the company released to the public its much-anticipated Claude Fable 5 model (and its restricted version Claude Mythos 5, which is still being tested with trusted partners). Anthropic said in a blog post announcing the action that officials cited national security concerns with the new models, while offering few specific details.

The post said that the government gave the company “verbal evidence of a potential narrow, non-universal jailbreak” of the public Fable 5 model. A jailbreak is a means by which users can evade restrictions built into the code to unlock prohibited functionality. Anthropic downplayed the significance of the attack, and said other major models, such as OpenAI’s GPT-5.5, could also be affected by the technique described.

Fears of these first Mythos-class models being misused are running high, after Anthropic warned the cybersecurity world in May that the advanced cyber capabilities of Mythos have rapidly discovered thousands of vulnerabilities in ubiquitous software, leading to the decision to restrict the full version of the model to a close group of trusted partners for testing.

This morning, Axios reported that Anthropic technical staff have flown to Washington to meet with White House officials to resolve the issue.

The Wall Street Journal is reporting that the Trump administration’s decision to take action against Anthropic was prompted by discussions that Amazon CEO Andy Jassy had with officials, including Treasury Secretary Scott Bessent. According to the report, Amazon researchers said they had been able to evade some of Fable 5’s security restrictions using specific prompts. Amazon is a major investor in Anthropic.

Anthropic is currently suing the US government to fight the Pentagon’s blacklisting of the company on national security grounds.

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Tesla used skewed data in push for European FSD approval, Reuters finds

Tesla has used highly questionable safety stats in an effort to win over European regulators and rekindle sales in the region, according to a Reuters investigation.

Tesla reportedly pitched regulators in Sweden and the Netherlands with claims that its Full Self-Driving (FSD) tech is over 7x safer than human drivers. However, independent researchers told Reuters that the stats are misleading because Tesla compares airbag-deployment crashes involving FSD-equipped vehicles with much broader US crash statistics, while also benchmarking newer Teslas against the entire US vehicle fleet, which is significantly older on average.

Despite the flawed metrics, the Dutch regulator approved FSD in April, saying its decision was based on its own “tests, analyses and verifications,” and Tesla is now pushing for EU-wide clearance. A version of FSD is currently available in five European markets.

Despite the flawed metrics, the Dutch regulator approved FSD in April, saying its decision was based on its own “tests, analyses and verifications,” and Tesla is now pushing for EU-wide clearance. A version of FSD is currently available in five European markets.

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Rani Molla

Report: Microsoft weighs Xbox spin-off amid major overhaul

Microsoft is reportedly considering spinning out or restructuring its struggling Xbox unit, per The Information. While new Xbox CEO Asha Sharma, who took over in February, is preparing for layoffs, shes simultaneously planning to boost investment in its biggest franchises like “Halo,” “Fallout,” and “Minecraft.”

The latest potential shake-up comes as the gaming division battles major headwinds, following a massive 33% plunge in Q3 console sales and a recent move to slash Game Pass prices while removing new Call of Duty titles.

The latest potential shake-up comes as the gaming division battles major headwinds, following a massive 33% plunge in Q3 console sales and a recent move to slash Game Pass prices while removing new Call of Duty titles.

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