Tech
Merz ramps up pressure on EU over electric car shift
German Chancellor Friedrich Merz called Tuesday for “more flexibility” from the EU in the transition to electric cars as resistance grows over plans to phase out combustion-engine vehicle sales by 2035.
Merz made the appeal at the opening of the IAA motor show in Munich, as Europe’s struggling automakers line up to plead for the bloc to reconsider the plan aimed at combating climate change.
German titans VW, BMW and Mercedes-Benz as well as US-European giant Stellantis have voiced concerns as they struggle to build up competitive electric vehicles (EV) against Chinese rivals like BYD.
While he did not openly criticize the EU’s deadline to halt sales of new combustion engine cars in a decade, Merz said he wanted to see “more flexibility” in European regulation.
“We are of course committed to the transition to e-mobility,” the conservative leader, who took office in May, told the show.
But he added that “we need smart, reliable and flexible European regulation—it is more necessary than ever”.
“We want to achieve climate protection as cost-effectively as possible through technological openness. Unilateral political commitments to specific technologies are fundamentally the wrong economic policy approach.”
Markus Soeder, the leader of Bavaria state where the motor show is taking place and a political ally of Merz, was more blunt.

“This combustion engine ban is wrong,” he told the show.
“We need other options because, to be perfectly honest, combustion engines still have a future. Electric mobility will prevail in the long term but we need significantly more time to organize the whole thing in Europe.”
‘Supportive’ speeches
Jan Vlasak, who works in software for a German carmaker, praised the speeches as “really supportive of the automotive industry”.
The 35-year-old agreed the 2035 ban should be reviewed, calling for it to be pushed back by five to 10 years.
A stuttering shift to EVs is one of the major challenges facing Europe’s auto sector. Manufacturers have invested huge sums in the transition, but sales have grown far more slowly than anticipated.
On top of that, the industry has faced rising production costs at home along with fierce competition in China from BYD and other EV makers that has eroded sales for foreign manufacturers in the world’s biggest auto market.
In Germany, the auto sector has already shed more than 50,000 jobs over the past year, according to EY.

Volkswagen is planning 35,000 layoffs between now and 2030 and taking the unprecedented step of halting production at two of its sites in Germany.
Plans for redundancies have been coming thick and fast at Porsche, Audi, and at hundreds of German auto sector suppliers.
Merz is planning to host meetings with key auto sector players soon to chart a way forward.
“Our goal is for Germany to remain one of the world’s leading places for automotive and manufacturing in the future—we want to shape the transformation of the automotive industry,” he said.
Chinese competition
On the other side of the argument, more than 150 businesses in the EV sector wrote an open letter to EU chief Ursula von der Leyen on Monday urging her to “not row back” on the 2035 target.
When the IAA winds down on Friday, carmakers are expected to have a meeting with von der Leyen in Brussels to discuss how to save the sector.
Underlining the competition the German car sector faces, more Chinese carmakers are expected at the fair than ever before.

Fourteen Chinese carmakers—as opposed to just 10 European ones—are displaying new models.
Around 100 of the 700 firms taking part overall in the IAA will be from China, up 40% from the last show in 2023.
Chinese carmakers there range from BYD, whose sales in Europe rose dramatically in the first half of this year, to GAC, which is taking its first steps in the European market.
BYD on Monday presented its compact Dolphin Surf model, which has been on sale in Europe since May for around 20,000 euros ($23,500).
From later this year it will be produced in a new facility in Hungary, with the company hoping to avoid EU tariffs on Chinese imports.
Volkswagen is trying to fight back with its own models at the more affordable end of the market.
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Tech
For the First Time, AI Analyzes Language as Well as a Human Expert
The original version of this story appeared in Quanta Magazine.
Among the myriad abilities that humans possess, which ones are uniquely human? Language has been a top candidate at least since Aristotle, who wrote that humanity was “the animal that has language.” Even as large language models such as ChatGPT superficially replicate ordinary speech, researchers want to know if there are specific aspects of human language that simply have no parallels in the communication systems of other animals or artificially intelligent devices.
In particular, researchers have been exploring the extent to which language models can reason about language itself. For some in the linguistic community, language models not only don’t have reasoning abilities, they can’t. This view was summed up by Noam Chomsky, a prominent linguist, and two coauthors in 2023, when they wrote in The New York Times that “the correct explanations of language are complicated and cannot be learned just by marinating in big data.” AI models may be adept at using language, these researchers argued, but they’re not capable of analyzing language in a sophisticated way.
That view was challenged in a recent paper by Gašper Beguš, a linguist at the University of California, Berkeley; Maksymilian Dąbkowski, who recently received his doctorate in linguistics at Berkeley; and Ryan Rhodes of Rutgers University. The researchers put a number of large language models, or LLMs, through a gamut of linguistic tests—including, in one case, having the LLM generalize the rules of a made-up language. While most of the LLMs failed to parse linguistic rules in the way that humans are able to, one had impressive abilities that greatly exceeded expectations. It was able to analyze language in much the same way a graduate student in linguistics would—diagramming sentences, resolving multiple ambiguous meanings, and making use of complicated linguistic features such as recursion. This finding, Beguš said, “challenges our understanding of what AI can do.”
This new work is both timely and “very important,” said Tom McCoy, a computational linguist at Yale University who was not involved with the research. “As society becomes more dependent on this technology, it’s increasingly important to understand where it can succeed and where it can fail.” Linguistic analysis, he added, is the ideal test bed for evaluating the degree to which these language models can reason like humans.
Infinite Complexity
One challenge of giving language models a rigorous linguistic test is making sure they don’t already know the answers. These systems are typically trained on huge amounts of written information—not just the bulk of the internet, in dozens if not hundreds of languages, but also things like linguistics textbooks. The models could, in theory, simply memorize and regurgitate the information that they’ve been fed during training.
To avoid this, Beguš and his colleagues created a linguistic test in four parts. Three of the four parts involved asking the model to analyze specially crafted sentences using tree diagrams, which were first introduced in Chomsky’s landmark 1957 book, Syntactic Structures. These diagrams break sentences down into noun phrases and verb phrases and then further subdivide them into nouns, verbs, adjectives, adverbs, prepositions, conjunctions and so forth.
One part of the test focused on recursion—the ability to embed phrases within phrases. “The sky is blue” is a simple English sentence. “Jane said that the sky is blue” embeds the original sentence in a slightly more complex one. Importantly, this process of recursion can go on forever: “Maria wondered if Sam knew that Omar heard that Jane said that the sky is blue” is also a grammatically correct, if awkward, recursive sentence.
Tech
AMD CEO Lisa Su Isn’t Afraid of the Competition
Michael Calore: Recording works.
Lauren Goode: Recording. Yeah.
Michael Calore: Yeah. It’s like when people say, let me film that. You’re not actually filming anything. You’re shooting a digital video.
Lauren Goode: So then if you have a video podcast, are you shooting the podcast? What do you say? Do you say taping, then?
Michael Calore: I think you say recording because it just—
Lauren Goode: Recording the pod.
Michael Calore: Yeah.
Lauren Goode: We’re recording the pod.
Michael Calore: It covers all the bases.
Lauren Goode: We’re capturing it.
Michael Calore: That’s what we’re doing.
Lauren Goode: We’re sublimating it. All right. Well, should we record this pod?
Michael Calore: I would like to, yes.
Lauren Goode: Let’s do it.
Michael Calore: Honestly, I’m still recovering from last week’s Big Interview event. My throat is still feeling a little bit raw, even though it’s been like four or five days.
Lauren Goode: You sound delightful to me.
Michael Calore: Thank you.
Lauren Goode: But that really was an epic event.
Michael Calore: It was.
Lauren Goode: Yeah.
Michael Calore: You were on stage.
Lauren Goode: I was. I was first up in the morning. Katie, our boss, gave the intro to the conference and then it was me and Lisa Su, the CEO of AMD. And not only was it a really interesting conversation, but then I was done for the day. I didn’t have to do any more interviews after that. And I just got to listen and absorb, and there were some other really great talks.
Michael Calore: There were, yes. And we’re going to talk through some of them. We’re also going to listen to your conversation with Lisa Su, and then we’ll talk about it, and we’ll take listeners behind the scenes of The Big Interview.
Tech
Why SpaceX Is Finally Gearing Up to Go Public
SpaceX is planning to raise tens of billions of dollars through an initial public offering next year, multiple outlets have reported, and Ars can confirm. This represents a major change in thinking from the world’s leading space company and its founder, Elon Musk.
The Wall Street Journal and The Information first reported about a possible IPO last Friday, and Bloomberg followed that up on Tuesday evening with a report suggesting the company would target a $1.5 trillion valuation. This would allow SpaceX to raise in excess of $30 billion.
This is an enormous amount of funding. The largest IPO in history occurred in 2019, when the state-owned Saudi Arabian oil company began public trading as Aramco and raised $29 billion. In terms of revenue, Aramco is a top-five company in the world.
Now SpaceX is poised to potentially match or exceed this value. That SpaceX would be attractive to public investors is not a surprise—it’s the world’s dominant space company in launch, space-based communications, and much more. For investors seeking unlimited growth, space is the final frontier.
But why would Musk take SpaceX public now, at a time when the company’s revenues are surging thanks to the growth of the Starlink Internet constellation? The decision is surprising because Musk has, for so long, resisted going public with SpaceX. He has not enjoyed the public scrutiny of Tesla, and feared that shareholder desires for financial return were not consistent with his ultimate goal of settling Mars.
Data Centers
Ars spoke with multiple people familiar with Musk and his thinking to understand why he would want to take SpaceX public.
A significant shift in recent years has been the rise of artificial intelligence, which Musk has been involved in since 2015, when he cofounded OpenAI. He later had a falling out with his cofounders and started his own company, xAI, in 2023. At Tesla, he has been pushing smart-driving technology forward and more recently focused on robotics. Musk sees a convergence of these technologies in the near future, which he believes will profoundly change civilization.
Raising large amounts of money in the next 18 months would allow Musk to have significant capital to deploy at SpaceX as he influences and partakes in this convergence of technology.
How can SpaceX play in this space? In the near term, the company plans to develop a modified version of the Starlink satellite to serve as a foundation for building data centers in space. Musk said as much on the social media network he owns, X, in late October: “SpaceX will be doing this.”
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