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⚡️Voters block AI data centers
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Welcome to The AI Report — the #1 AI newsletter for business leaders. You don’t need to be technical. Just informed.
1. 🔒 Reclaim your privacy today with Incogni
2. ⚡️Voters block AI data centers
3. 💼 The Deployment Report
4. 👔 Simplify global hiring with Deel
5. 🗞️ The News Bulletin
6. 🎙️ In This Episode…
7. 🤝 Executive AI Roles, powered by Jack and Jill
8. ✺ The secret to better Claude outputs is in the brief
9. 📬 Beyond AI: three reads we rate
TOGETHER WITH INCOGNI
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Latest in AI
⚡️Voters block AI data centers
🚨 Our Report
Voters rejected data center development in 40 of 41 ballot measures across 10 states on Tuesday, delivering a sharp rebuke to the AI infrastructure boom that Big Tech and hyperscalers have been racing to build.
🔓 Key Points
Ohio accounted for more than half of the measures, with 21 on the ballot, and Democrat Amy Acton flipped the governor's seat after supporting a "conditional moratorium" requiring data centers to cover 100% of utility costs and use union labor.
In Texas, Democrat Gina Hinojosa unseated Gov. Greg Abbott by framing the Republican incumbent as prioritizing tech industry interests over local communities, a warning sign for companies that left California seeking friendlier business climates.
56% of voters in a CNBC poll said data centers were a crucial or major factor in their decision, with Democrats ranking the issue higher than Republicans and already calling for AI executives to testify under oath.
🔐 Relevance
For enterprises betting on AI infrastructure expansion, the political calculus just shifted. OpenAI's 8-gigawatt Ohio campus, backed by SoftBank and Nvidia, now faces a potentially hostile state government. The hyperscalers are each spending hundreds of billions annually on data centers, and community resistance will add new hurdles to permitting timelines, utility negotiations, and site selection. Companies planning large-scale AI deployments should factor rising political risk into capacity forecasts.
THE DEPLOYMENT REPORT
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TOGETHER WITH DEEL
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EXECUTIVES TOOLS RADAR
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Apple is cutting AI budgets for internal engineering teams, reversing months of aggressive adoption.
The company lowered its daily AI spending cap for engineering teams from $300 to $200 in October. Further cuts are coming, with some allowances dropping to $100 a day. Non-engineering teams may face limits as low as $25 daily.
The pullback follows a wave of "tokenmaxxing" earlier this year, when companies pushed staff to maximize AI usage in pursuit of efficiency gains. Bills came due. Companies learned that token rationing makes more sense than unlimited access.
Why it matters: Apple's move signals a broader industry recalibration. The gap between AI operating costs and measurable productivity gains is forcing enterprises to treat AI budgets like any other expense, not a blank check for innovation.
THE MONEY
As AI-generated code floods production environments, investors are betting the next bottleneck isn't models or compute—it's keeping systems running. Downtime costs have surged 50% in two years to $600B annually while engineers lose seven hours weekly to troubleshooting. Capital is flowing to companies that solve AI's operational chaos before it compounds.
Deals to know:
Traversal (Series B, $120M at $1B valuation) -- AI site reliability engineering for enterprise production systems. ARR up 9x YTD, product usage up 100x. Serves Nubank, Harvey, PepsiCo, American Express. Investors: Kleiner Perkins, Redpoint Ventures, Khosla Ventures, Sequoia Capital
Fiddler AI + Dreadnode (Acquisitions, ~$495M combined) -- CrowdStrike paying $400M for AI agent observability and $95M for AI security testing, expanding its Falcon platform as enterprise AI adoption outpaces security controls.
Signal: The market now values AI infrastructure resilience as highly as AI capability itself—Gartner projects 85% of enterprises will adopt AI SRE tooling by 2029, up from under 5% today.
EXECUTIVE AI ROLES
Product Manager
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Senior Infrastructure Engineer
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AI NEWS
🎙️ Brett Jenks, CEO of Rare talks about what it takes to change human behavior at scale, and how Rare is using AI to do it. WATCH HERE
🔌 POLICY: Privacy group noyb has filed GDPR complaints against Scale AI in four EU countries, alleging its Outlier platform illegally tracked 900,000+ data workers with social pixels and required excessive biometric verification without consent. LEARN MORE
💰 ECON NEWS: Anthropic's S-1 filing reveals $895.4B in computing and infrastructure commitments stretching to 2045, including $161.2B to Broadcom, $121.3B to Google Cloud, and $110B to Amazon. FULL STORY
💻 MEDIA NEWS: Salesforce's Agentforce Coworker usage soars 21x in three months, with 185,000+ users at companies like The Adecco Group, Fulton Bank, and BACA Systems delegating real work to AI. LEARN MORE
🛡️ SECURITY NEWS: Axon faces class action lawsuit over AI-powered license plate readers, alleging the company failed to disclose how it collects, uses, and shares plate data under California privacy law. FULL STORY
BEYOND AI
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👥 HR FOR HUMANS: corporate news, workplace trends and career tips, curated for HR and people leaders. SUBSCRIBE
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TOGETHER WITH AI REPORT PRO
The secret to better Claude outputs is in the brief
In Tuesday’s free session, the Agentic Brain team shared two things that change what you get back from Claude:
Every prompt needs three parts: the context, the task, and the format you want back.
Skills save you from repeating yourself. Build one once, share it with your team, and everyone works from the same instructions.
That was one session. The cohort is four weeks of it, going much further: in-depth work with artifacts, delegating multi-step tasks, and automations that run without you. You work on your own tasks with direct feedback from the team behind 700+ AI agents. It starts November 11, with 30 seats.
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Until next time, The AI Report Team.
