Business

Bioethanol plant begins shut-down process

Published

3 weeks ago

August 18, 2025

Vivergo, one of two UK bioethanol plants, has ceased production and will start laying off its 160 employees on Tuesday.

After weeks of talks, the government said on Friday it would not be providing financial support for the bioethanol sector, which is facing increased competition from imported US ethanol.

Vivergo, owned by Associated British Foods, said that would have meant continuing as a “heavily loss-making” business. As a result it is closing, with all staff due to be gone and the site ready for demolition by end of the year.

The government said it had decided a rescue would not provide value for taxpayers or solve the industry’s long-term problems.

Bioethanol, can be made from waste oil or grains and is used as an additive to fuels, to reduce climate-damaging emissions. For example it is added to E5 and E10 petrol and sustainable aviation fuel.

In May the UK signed a trade deal which removed 19% tariffs on US-imported ethanol up to a quota of 1.4bn, roughly eqivalent to the size of the UK market.

It was one of the concessions made by the UK as part of a broader trade pact, that eased the tariffs that President Donald Trump had said he would impose on UK car and steel being imported across the Atlantic to the US.

Even before that trade agreement, the UK sector had complained that US imports had an unfair financial advantage as their ethanol is certified as a waste byproduct in the UK, whereas domestically-produced bioethanol is not.

Vivergo is one of two bioethanol sites in the UK which has said without support it will be forced to close.

The BBC understands that the other plant in Redcar, Teesside, which is owned by German firm Ensus, is waiting to hear whether the government will provide support to protect its CO2 production, a product widely used in industry, food production and healthcare.

Vivergo had also been planning to start capturing CO2 produced as part of the bioethanol making process, but had not yet started.

Ben Hackett, Vivergo’s managing director described the government’s decision not to provide a rescue package as a “massive blow to Hull and the Humber”.

He said the government had decided the bioethanol sector was something that could be “traded away” and that it amounted to a “flagrant act of economic self-harm”.

As well as the loss of its own staff, Vivergo warned there would be a knock-on effect on suppliers and customers. It would be hard for UK farmers to find alternative customers for wheat which is not food-grade, Mr Hackett said.

Andrew Symes, the chief executive of OXCCU, which makes sustainable aviation fuel, told the BBC’s Today programme that the closure would make the UK reliant on imports for CO2 and for ethanol, which he described as “risky”.

“I think that was probably what wasn’t realised when the trade deal was done,” he said.

The government said it had taken the decision “in the national interest” and that the tariff deal with the US had protected “hundreds of thousands of jobs in sectors like auto and aerospace”.

A government spokesperson said it would work to support the companies through the closure process and that it was continuing to work on proposals that would “ensure the resilience of our CO2 supply in the long-term”.

Charlotte Brumpton-Childs, GMB National Officer, said the government’s commitment to green policies should mean a commitment to green jobs.

“A clean energy industrial strategy means nothing if we cannot protects plants long enough to deliver clean energy jobs here in the UK,” she said.

Source link

Business

AI company Anthropic to pay authors $1.5 billion in landmark settlement

Published

4 hours ago

September 6, 2025

The Editors

Big numbers often get thrown around in the aftermath of legal battles, as judges hand down judgements—or attorneys arrange settlement amounts—in the tens, or hundreds, of millions of dollars. Still, even jaded legal observers can occasionally run into a genuinely daunting number while parsing this stuff. Like, say, the $1.5 billion settlement that AI company Anthropic has agreed to pay in the ongoing class-action suit against it, launched by authors who said the company infringed on their copyrighted works by feeding them as training data to its “AI assistant” Claude. Sure, parts of that sum (calculated at $3,000 per work for a staggering number of works, and with its first $300 million installment due just five days after the settlement is approved) might potentially vanish in a puff of future bankruptcy. But it’s still the “largest publicly reported copyright recovery in history,” according to legal documents from the authors’ attorneys.

That being said, the win here on the wider AI front is quite a bit less clear than “hand our clients the annual estimated GDP of Grenada” might suggest. Yes, U.S. District Judge William Alsup set the stage for Anthropic to eat that massive price tag by ruling that the company clearly violated copyright agreements via how it acquired the books it fed into its own personal woodchipper. (I.e., downloading pirated datasets of millions of books that had been floating around the internet.) And, yes, the settlement will require Anthropic to destroy those “shadow library” datasets in its possession. (But notably, with no actual changes to the Claude large language model itself.) Most critically, though, back in June, Alsup also ruled that “reproducing purchased-and-scanned books to train AI” falls under fair use, calling the case “exceedingly transformative” as a justification for the designation.

As such, both sides in the fight issued statements claiming a form of victory today, with the authors’ side focusing mostly on the massive size of the settlement amount. Anthropic, meanwhile—which has been backed in the past with more than $6 billion in contributions from Amazon and Google—focused its statements on the legal precedent it achieved in the case: “In June, the District Court issued a landmark ruling on AI development and copyright law, finding that Anthropic’s approach to training AI models constitutes fair use. Today’s settlement, if approved, will resolve the plaintiffs’ remaining legacy claims.” What this likely means is that AI companies aren’t going to slow down—especially with, say, a $1.5 billion mortgage suddenly hanging over their heads—but simply become a lot more choosy about how they get their training data.

[via Deadline]

Source link

Business

Broadcom Inc. Reports Record Revenue Amid AI Growth

Published

4 hours ago

September 6, 2025

TipRanks Auto-Generated Newsdesk

Broadcom Inc. ((AVGO)) has held its Q3 earnings call. Read on for the main highlights of the call.

Elevate Your Investing Strategy:

Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.

The recent earnings call from Broadcom Inc. showcased a strong performance in AI semiconductors and infrastructure software, with record revenues and a solid backlog. Despite some challenges in the non-AI semiconductor segment and pressures on gross margins due to product mix, the overall sentiment was optimistic. The positive highlights significantly outweighed the lowlights, indicating a promising outlook for future growth, particularly in AI.

Record-Breaking Revenue and Growth

Broadcom Inc. reported a record total revenue of $16 billion, marking a 22% increase year-on-year. This impressive growth was primarily driven by the strong performance in AI semiconductors and the expansion of VMware. The company’s ability to achieve such significant revenue growth underscores its strategic focus on high-growth areas.

AI Semiconductor Growth

The AI semiconductor segment was a standout performer, generating $5.2 billion in revenue, which represents a 63% increase year-on-year. This marks the 10th consecutive quarter of robust growth in this segment. Looking ahead, Broadcom forecasts AI semiconductor revenue to reach approximately $6.2 billion in Q4, up 66% year-on-year, highlighting the company’s leadership in this rapidly expanding market.

Infrastructure Software Segment Performance

Broadcom’s infrastructure software segment also delivered strong results, with revenue reaching $6.8 billion, up 17% year-on-year. The total contract value booked during Q3 was $8.4 billion, reflecting the company’s strength in securing long-term commitments from customers.

Strong Backlog and Bookings

The company’s consolidated backlog reached a record $110 billion, with bookings showing robust growth, particularly in AI. This substantial backlog provides a solid foundation for future revenue and demonstrates strong customer demand across Broadcom’s product lines.

CEO Tenure Extension

In a significant leadership development, Broadcom’s board and CEO Hock Tan have agreed that he will continue as the CEO through at least 2030. This extension provides stability and continuity in leadership, which is crucial for executing the company’s long-term strategic vision.

Non-AI Semiconductor Demand

While the AI segment thrived, the non-AI semiconductor demand remained sluggish, with Q3 revenue of $4 billion flat sequentially. Enterprise networking and service storage experienced sequential declines, with only broadband showing strong growth. This highlights the challenges Broadcom faces in certain segments of its semiconductor business.

Gross Margin Impact

Broadcom anticipates a slight decline in its Q4 consolidated gross margin, down approximately 70 basis points sequentially. This is primarily due to a higher mix of XPUs and wireless revenue, which impacts the overall product mix and margin structure.

Forward-Looking Guidance

During the earnings call, Broadcom provided robust guidance for the upcoming quarter and fiscal year. The company forecasts Q4 2025 consolidated revenue of $17.4 billion, up 24% year-on-year, with AI semiconductor revenue expected to reach $6.2 billion, up 66% year-on-year. Infrastructure software revenue is projected at $6.7 billion, up 15% year-on-year. Broadcom anticipates an adjusted EBITDA margin of 67% for Q4, with continued growth in the AI business and the addition of a significant fourth customer expected to positively impact fiscal 2026.

In summary, Broadcom Inc.’s latest earnings call highlighted a strong performance in AI semiconductors and infrastructure software, with record revenues and a promising outlook for future growth. Despite some challenges in non-AI segments and margin pressures, the overall sentiment was optimistic, driven by significant achievements and robust forward-looking guidance.

Disclaimer & Disclosure Report an Issue

Source link

Business

Runway founder Cristóbal Valenzuela wants Hollywood to embrace AI

Published

6 hours ago

September 5, 2025

The Editors

At 84, veteran mogul John Malone is still a power broker, hinting at “further consolidation in the media industry” following a recent sit down with David Ellison. Should we be on the lookout for a Warner–Paramount merger? Meanwhile in Vegas, the Sphere’s $100 million Wizard of Oz reimagining leans on AI to expand the visuals and even slip in cameos of David Zaslav and James Dolan. The Directors Guild did not take kindly to the stunt. Partners in Banter Kim Masters and Matt Belloni pull back the curtain on the Sphere’s Emerald City sideshow.

Plus, Masters speaks with Runway co-founder Cristóbal Valenzuela about the role of artificial intelligence in Hollywood. The Chilean-born developer acknowledges that AI may lead to some job losses, but he argues it will ultimately benefit filmmakers. He explains why studios including Lionsgate, Netflix, and Disney are already using Runway’s tools. Plus, he compares the current backlash against AI to the upheaval that followed the introduction of sound in film.

Source link