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Don’t look at the number of forecasted storms and panic. But don’t get complacent, either.
When is an announcement less an announcement than a confirmation?
The National Oceanic and Atmospheric Administration’s 2024 hurricane season outlook, issued Thursday morning, might be one such case. For the past several weeks, hurricane agencies around the country have been warning of an extremely active, potentially historic season due to a confluence of factors including the record-warm water in the Atlantic Main Development Region and the likely start of a La Niña, which will make the wind conditions more favorable to Atlantic storm formation. With the Atlantic Hurricane Season set to start a week from Saturday, on June 1, NOAA has at last issued its own warning: There is an 85% chance of an above-average season, with eight to 13 hurricanes and four to seven of those expected to be “major” Category 3 or greater storms.
With an estimate of up to 25 total named storms for the whole season, NOAA’s outlook marks the greatest number of named storms ever predicted by the agency at this point in May. (For those also invested in hurricane nomenclature, the 22nd storm of the season would get its name from a new, supplemental list that starts over with “Adria”). Still, it’s not exactly newsat this point that we’re in for a whopper of a season. And hurricane experts will be the first to tell you that a “busy” year doesn’t mean anything in terms of how you should think about preparedness: All it takes is one nearby storm to make it a “busy” year for you. By the same token, it’s theoretically possible (albeit highly unlikely) for there to be 25 named storms this year, none of which make landfall.
More interesting, then, is how the government is talking about these storms with the public. Yes, it is still putting a number on how many “major” storms there could be with sustained winds of 111 miles per hour or more — a headline-making tendency that irritates many of the hurricane experts I spoke with earlier this spring. However, Ken Graham, the director of NOAA’s National Weather Service, also stressed the limited utility of such a claim on Thursday. “The Saffir-Simpson scale measures the wind, but it’s actually the other impacts — it’s the water” that people should be worried about, he said.
While in the popular imagination hurricanes are coastal phenomena that kill people with high winds and waves, 90% of hurricane fatalities result from water, and most of those (57%) are freshwater deaths from heavy rainfall — sometimes hundreds of miles inland. Graham pointed to 2018’s Hurricane Florence as an example, when people drowned in parts of the Carolinas far from the ocean after rivers flooded and jumped their banks. Similarly, it is not always traditional “hurricane areas” like Florida or Texas where these storms have effects: The remnants of Hurricane Ida killed 13 people in New York City in 2021 when the storm broke the city’s record for single-hour rainfall. (Water damage and flooding are also part of what drives the insurance crisis in the Southeast, although NOAA and other agencies’ worrisome predictions for this year aren’t directly linked to 2024 premiums.)
To account for nontraditional ways of thinking about hurricane impacts, NOAA is launching an experimental “forecast cone” this year to warn of effects outside a hurricane’s immediate path. But messaging and graphics can only go so far, and time is of the essence. “Every Category 5 storm that made landfall in the United States in the last 100 years was a tropical storm or less three days prior,” Graham said. “The big ones are fast.” And they certainly don’t care about our timelines, our May outlooks, or how our cones of uncertainty appear on TV.
I’m sympathetic to NOAA’s messaging bind, though. Outlooks like the one issued Thursday make eye-catching headlines, which in turn helps to raise awareness that the time to prepare is now. (No, seriously.) But given the rapid intensification of hurricanes and those warm Atlantic waters that act like Mario mega mushrooms for cyclones, it’s perhaps more useful to think of the season as the main event rather than weigh the odds of whether one of the year’s 20-or-so-named storms will break in your specific direction.
Still. That doesn’t change the fact that 25 is a big number for the upper end of predicted Atlantic storms and that 2024 is tracking to be a historic year. “Everything has to come together to get a forecast like this,” Graham said.
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Microsoft is canceling data center leases, according to a Wall Street analyst.
The artificial intelligence industry is experiencing another TD Cowen shock.
The whole spectrum of companies connected to artificial intelligence — the companies that design the chips, that supply the power, that make the generation equipment — shuddered Wednesday when the brokerage released another note from analysts pointing to evidence that Microsoft was giving up on its data center leases.
“Microsoft has both (1) walked away from +2GW of capacity in both the U.S. and Europe in the last six months that was in process to be leased, and (2) has both deferred and canceled existing data center leases in both the U.S. and Europe in the last month,” the analysts wrote.
Microsoft is one of the biggest players in the artificial intelligence industry, with its near-$14 billion investment in OpenAI and acommitment to spend $80 billion on data center capacity this year.
The company is pulling back, the TD Cowen analysts said, because it had decided not to support incremental increases in training workloads for OpenAI models. Shares in Nvidia, the chip designer that’s become one of the most valuable companies in the world on the back of optimism about artificial intelligence, are down 7% since market close Tuesday, while shares in the power companies Vistra and Constellation are down 9% and 7% respectively. GE Vernova, which makes turbines for gas-fired power plants, is down 9%.
Much of the power industry saw huge increases in their stock prices in 2024, as investors bet on increased demand for electricity from data centers, manufacturing, and electrification. But 2025 so far has been a year of mild expectations.
In February, Cowen analysts issued a similar note warning that Microsoft was pulling back on some of its data center leases. And in January, of course, many of the AI and energy stocks that had been soaring 2024dropped when the Chinese artificial intelligence company DeepSeek released an open source model comparable in performance to the state of the art in the United States but that required far less computing power to train.
The Cowen analysts were hardly doomy about AI and data center construction, writing that Google and Meta may be “backfilling” the capacity left behind by Microsoft as they seek to expand their own data center footprints.
But the case for across the board optimism may be slightly dimming across the sector. CoreWeave, which buys Nvidia chips and operates data centers, has had to reduce the amount of money its seeking to raise in its planned initial public offering to $1.5 billion, from the over $4 billion it was looking to get from investors earlier in the IPO process, Bloomberg reported. Nvidia, an investor in CoreWeave and its most important supplier, will be “anchoring” the IPO, kicking in $250 million.
The tax agency reopened its online portal to allow dealerships to register sales retroactively.
As recently as last month, some electric vehicle buyers were running into roadblocks when they tried to claim the EV tax credit on their 2024 returns. Their claims were rejected, it turned out, because the dealership where they bought their EV never registered the sale with the Internal Revenue Service.
On Wednesday, the IRS instituted a fix: It reopened the online portal for dealerships to report these sales retroactively.
The confusion all started with a major change the IRS made to the EV tax credit program last year. Previously, all dealers had to do was give the buyer a “time of sale” report that they could submit to the IRS come tax season. But as of 2024, dealerships were expected to register every EV sale that was eligible for the tax credit through this new online portal. Not only that, they had to do so within three days of the sale. The portal would not allow entries dated more than three days post-sale.
The IRS and the National Automobile Dealers Association did outreach to educate dealerships about the changes, but many were apparently still unaware of the requirements — some never even made an online account. Customers were similarly ignorant of the intricacies of the process. Many received time of sale reports and thought they were all set. But in January, when they began trying to claim the credit on their taxes for the previous year, they were surprised to receive an error message saying that their EV was not registered with the IRS. Some tried to get their dealerships to register the sale retroactively, but the IRS portal didn’t allow for it.
President Trump has vowed to kill the EV tax credit, and Congress is just now beginning to hammer out the legislation that could execute his wishes. In light of that, and given the relative chaos at the IRS caused by Elon Musk’s “efficiency” department demanding access to private taxpayer information and laying off thousands of IRS employees, it was unclear whether the Treasury Department would do anything to help these unlucky EV buyers seeking their refunds. The Treasury did not respond to multiple inquiries from Heatmap in February.
The Dealers Association also never responded to multiple inquiries from Heatmap about the issue. But in a notice to dealerships this week, first reported by NPR, the trade group said the IRS planned to roll out an update to the portal on Wednesday to allow for sales made in 2024 to be submitted.
If any of this has made you nervous about getting an EV this year, remember that you have another, safer option for claiming the tax credit. Instead of claiming it on your taxes in 2026, you can transfer it to your dealer, who can take it off the sale price of the car on the spot. Just make sure they know about the online portal!
The electric vehicle company Rivian is known for products that are, well, large: pickup trucks, SUVs, and delivery vans. But for the past three years, it has been stealthily designing the technology platform for a slew of much smaller, yet-to-be-revealed electric vehicles — think bikes, scooters, and golf carts. Today, Rivian officially spun off that project into its own company, called Also, while … also … announcing that the new venture had raised a $105 million Series B funding round.
The name Also, the company’s CEO Chris Yu told me, points to the idea that owning a car and owning a smaller EV are not mutually exclusive — rather, it’s about finding the right tool for the job. “If I’m taking my family to Yosemite on the weekend, I want to use my Rivian R1S, but for my daily school runs, probably not. That’s not the most efficient or enjoyable way to do it,” Yu told me. In the U.S. about 80% of all car trips are 15 miles or less, and over 50% of are less than six miles. The goal of Also, Yu said, is for smaller EV’s — or “micromobility solutions” — to replace cars for those shorter daily excursions.
Prior to his new role, Yu worked as vice president on Rivian’s “Future Programs” team, working to incubate Also alongside Rivian’s CEO RJ Scaringe, who will now serve as the new company’s board chair while continuing to lead Rivian. The incumbent EV-automaker participated in Also’s Series B alongside the lead investor, venture capital firm Eclipse, and will maintain a minority ownership stake in it.
Also’s flagship product is set to launch in the U.S. and Europe early next year, and will be followed by consumer and commercial products for the Asian and South American markets, though the company hasn’t yet said what these products will be. In the U.S., electric scooters and e-bikes have taken off in cities, while in some suburban areas, beach towns and retirement communities, golf carts are ubiquitous. Across much of South Asia, Africa, and Latin America, three-wheelers such as rickshaws and mototaxis are everywhere, and are increasingly being electrified.
But there’s still a long way to go. “The rate of electrification for small vehicles across the world is far, far lower than cars, like low single digit percent,” Yu told me. He said that what will set Also apart from existing offerings — besides electrification, of course — is the scale the company aims to operate at and its intuitive technology platform.
Also is developing everything in-house, from the motors to the software, which Yu said will lead to the type of seamless, personalized user experiences that customers have come to expect from newer EVs such as Rivians or Teslas. Think “walking up to your vehicle and having it automatically know that it’s you and unlocking,” Yu told me, or “adjusting to your profiles, your media plays, what you were last playing, etc.” Making something like an e-bike or electric golf cart “smarter,” Yu explained, could also help with issues such as security — potentially making Also’s TBD products less vulnerable to theft — or safety, such as gauging if someone is riding at a dangerous speed for the area or in an inappropriate zone.
Even with this type of advanced technology integration, Yu claimed that the company’s products will be cost competitive with what’s on the market today due to the scale that Also aims to achieve. Yu’s hope is that taking advantage of Rivian’s existing technologies and retail footprint will help.
Whatever form factor Also’s small EVs take, Yu told me they will embody Rivian’s adventurous spirit, “weaving in some of what people aspire to do and look forward to doing, whether it’s on a weekend or summer vacations,” he explained. So will this look like an off-roading golf cart? A smarter electric mountain bike? A scooter that also rips on the backroads? We’ll have to wait until next year to see.