Cost-sensitive machine learning

Cost-sensitive machine learning

Cost-sensitive machine learning is an approach within machine learning that considers varying costs associated with different types of errors. This method diverges from traditional approaches by introducing a cost matrix, explicitly specifying the penalties or benefits for each type of prediction error. The inherent difficulty which cost-sensitive machine learning tackles is that minimizing different kinds of classification errors is a multi-objective optimization problem. == Overview == Cost-sensitive machine learning optimizes models based on the specific consequences of misclassifications, making it a valuable tool in various applications. It is especially useful in problems with a high imbalance in class distribution and a high imbalance in associated costs Cost-sensitive machine learning introduces a scalar cost function in order to find one (of multiple) Pareto optimal points in this multi-objective optimization problem (similar to the Weighted sum model) == Cost Matrix == The cost matrix is a crucial element within cost-sensitive modeling, explicitly defining the costs or benefits associated with different prediction errors in classification tasks. Represented as a table, the matrix aligns true and predicted classes, assigning a cost value to each combination. For instance, in binary classification, it may distinguish costs for false positives and false negatives. The utility of the cost matrix lies in its application to calculate the expected cost or loss. The formula, expressed as a double summation, utilizes joint probabilities: Expected Loss = ∑ i ∑ j P ( Actual i , Predicted j ) ⋅ Cost Actual i , Predicted j {\displaystyle {\text{Expected Loss}}=\sum _{i}\sum _{j}P({\text{Actual}}_{i},{\text{Predicted}}_{j})\cdot {\text{Cost}}_{{\text{Actual}}_{i},{\text{Predicted}}_{j}}} Here, P ( Actual i , Predicted j ) {\displaystyle P({\text{Actual}}_{i},{\text{Predicted}}_{j})} denotes the joint probability of actual class i {\displaystyle i} and predicted class j {\displaystyle j} , providing a nuanced measure that considers both the probabilities and associated costs. This approach allows practitioners to fine-tune models based on the specific consequences of misclassifications, adapting to scenarios where the impact of prediction errors varies across classes. == Applications == === Fraud Detection === In the realm of data science, particularly in finance, cost-sensitive machine learning is applied to fraud detection. By assigning different costs to false positives and false negatives, models can be fine-tuned to minimize the overall financial impact of misclassifications. === Medical Diagnostics === In healthcare, cost-sensitive machine learning plays a role in medical diagnostics. The approach allows for customization of models based on the potential harm associated with misdiagnoses, ensuring a more patient-centric application of machine learning algorithms. == Challenges == A typical challenge in cost-sensitive machine learning is the reliable determination of the cost matrix which may evolve over time. == Literature == Cost-Sensitive Machine Learning. USA, CRC Press, 2011. ISBN 9781439839287 Abhishek, K., Abdelaziz, D. M. (2023). Machine Learning for Imbalanced Data: Tackle Imbalanced Datasets Using Machine Learning and Deep Learning Techniques. (n.p.): Packt Publishing. ISBN 9781801070881

And–or tree

An and–or tree is a graphical representation of the reduction of problems (or goals) to conjunctions and disjunctions of subproblems (or subgoals). == Example == The and–or tree: represents the search space for solving the problem P, using the goal-reduction methods: P if Q and R P if S Q if T Q if U == Definitions == Given an initial problem P0 and set of problem solving methods of the form: P if P1 and … and Pn the associated and–or tree is a set of labelled nodes such that: The root of the tree is a node labelled by P0. For every node N labelled by a problem or sub-problem P and for every method of the form P if P1 and ... and Pn, there exists a set of children nodes N1, ..., Nn of the node N, such that each node Ni is labelled by Pi. The nodes are conjoined by an arc, to distinguish them from children of N that might be associated with other methods. A node N, labelled by a problem P, is a success node if there is a method of the form P if nothing (i.e., P is a "fact"). The node is a failure node if there is no method for solving P. If all of the children of a node N, conjoined by the same arc, are success nodes, then the node N is also a success node. Otherwise the node is a failure node. == Search strategies == An and–or tree specifies only the search space for solving a problem. Different search strategies for searching the space are possible. These include searching the tree depth-first, breadth-first, or best-first using some measure of desirability of solutions. The search strategy can be sequential, searching or generating one node at a time, or parallel, searching or generating several nodes in parallel. == Relationship with logic programming == The methods used for generating and–or trees are propositional logic programs (without variables). In the case of logic programs containing variables, the solutions of conjoint sub-problems must be compatible. Subject to this complication, sequential and parallel search strategies for and–or trees provide a computational model for executing logic programs. == Relationship with two-player games == And–or trees can also be used to represent the search spaces for two-person games. The root node of such a tree represents the problem of one of the players winning the game, starting from the initial state of the game. Given a node N, labelled by the problem P of the player winning the game from a particular state of play, there exists a single set of conjoint children nodes, corresponding to all of the opponents responding moves. For each of these children nodes, there exists a set of non-conjoint children nodes, corresponding to all of the player's defending moves. For solving game trees with proof-number search family of algorithms, game trees are to be mapped to and–or trees. MAX-nodes (i.e. maximizing player to move) are represented as OR nodes, MIN-nodes map to AND nodes. The mapping is possible, when the search is done with only a binary goal, which usually is "player to move wins the game".

Colossus (supercomputer)

Colossus is a supercomputer developed by xAI. Construction began in 2024 in Memphis, Tennessee; the system became operational in July 2024. It is currently the world's largest AI supercomputer. Colossus's primary purpose is to train the company's chatbot, Grok. In addition, Colossus provides computing support to the social-media platform X and to other projects of Elon Musk, such as SpaceX. In 2025, it expanded to neighboring Southaven, Mississippi across the Tennessee–Mississippi border. As of May 6, 2026, Anthropic has agreed to rent all compute capacity at the Colossus 1 data center. == Background == Colossus was launched in September 2024 at a former Electrolux site in South Memphis to train the AI language model Grok. Within 19 days of the project's conception, xAI was ready to begin construction. The site was chosen because the abandoned Electrolux building could be repurposed to expedite construction and its proximity to a nearby wastewater treatment facility provided a water source. As of February 2025, xAI plans to build an $80 million facility to process additional wastewater for use at the supercomputer. === xAI === Musk incorporated xAI in March 2023 with the stated purpose of understanding the "nature of the universe". The team includes former members of OpenAI, DeepMind, Microsoft, and Tesla. Musk was one of the founding members of the company OpenAI, investing up to US$45 million in 2015. He left OpenAI in 2018, reportedly to avoid conflicts of interest with Tesla. It has also been reported that he had made a bid for leadership at OpenAI and left when his proposal was rejected. The exact reasons for his departure from the company are unclear. Both Dell Technologies and Supermicro partnered with xAI to build the supercomputer. It was originally powered by 100,000 Nvidia graphics processing units (GPUs) and was constructed in 122 days. 3 months after the first 100,000 GPUs were deployed, xAI announced that they had increased the system to 200,000 GPUs and that they intended to continue increasing the computer's processing power to 1 million GPUs. As of April 2025, xAI claimed Colossus was the largest AI training platform in the world. == Choice of location == xAI selected Memphis, in southwestern Tennessee, as the site for Colossus in part because an existing industrial facility allowed the project to proceed more quickly than constructing a new data center. Elon Musk was initially told that building a data center would take 18–24 months. The company instead searched for a vacant facility and selected the former Electrolux factory in Memphis. Electrolux opened the facility in 2012 and operated it for about eight years before closing it in 2020 after relocating operations to Springfield, Tennessee. The building covered 785,000 sq ft (72,900 m2) and had been purchased by Phoenix Investors in December 2023 for $35 million . Because the structure was already in place, work on the supercomputer could begin immediately rather than waiting for a new facility to be constructed. According to Forbes, xAI considered seven or eight other sites before selecting Memphis, and Musk finalized the decision to build in Memphis in about a week. The decision was finalized in March 2024, after which construction began. xAI publicly announced in June 2024 that Colossus would be built in Memphis. The building itself was not the only reason xAI selected Memphis. According to the Greater Memphis Chamber, the company chose the city because of its "reliable power grid, ability to create a water recycling facility, proximity to the Mississippi River and ample land". The city was also able to provide the large amounts of electricity and water needed to operate the supercomputer. At full capacity, the system was expected to require 150 megawatts of electricity and millions of gallons of water per day. The project also relied on partnerships with local and regional organizations including Memphis Light, Gas and Water (MLGW), Tennessee Valley Authority (TVA), the City of Memphis, and Shelby County. The city also provided financial incentives for the project. == Environmental impact == AI data centers consume large amounts of energy. At the site of Colossus in South Memphis, the grid connection was only 8 MW, so xAI applied to temporarily set up more than a dozen gas turbines (Voltagrid’s 2.5 MW units and Solar Turbines’ 16 MW SMT-130s) which would steadily burn methane gas from a 16-inch natural gas main. Aerial imagery in April 2025 showed 35 gas turbines had been set up at a combined 422 MW. These turbines have been estimated to generate about "72 megawatts, which is approximately 3% of the (TVA) power grid". The higher number of gas turbines and the subsequent emissions requires xAI to have a major source permit. In Memphis, xAI was able to avoid some environmental rules in the construction of Colossus, such as operating without permits for the on-site methane gas turbines because they are "portable". The Shelby County Health Department told NPR that "it only regulates gas-burning generators if they're in the same location for more than 364 days". However, in a January 2026 ruling, the EPA revised its New Source Performance Standard and announced that large methane gas turbines require permits even for temporary operations. In November 2024, the grid connection was upgraded to 150 MW, and some turbines were removed. Along with high electricity needs, the expected water demand is over five million gallons of water per day. While xAI has stated they plan to work with MLGW on a wastewater treatment facility and the installation of 50 megawatts of large battery storage facilities, there are currently no concrete plans in place aside from a one-page factsheet shared by MLGW. == Community response == The plan to build Colossus in Memphis was unknown to residents, City Council members, and environmental agencies. Many did not find out about the project until the day before, or the day of, as they watched the announcement on the local news. Keshaun Pearson, president of Memphis Community Against Pollution, stated that there is a historical lack of transparency and communication surrounding environmental issues in Memphis. Some community members in Memphis have expressed concern about the potential for additional air and water pollution caused by the supercomputer. In a letter to the Shelby County Health Department, the Southern Environmental Law Center stated the emissions from the turbines make the facility "...likely the largest industrial emitter of NOx in Memphis..." This is due to data supplied by the manufacturer showing that "...xAI emits between 1,200 and 2,000 tons of smog-forming nitrogen oxides (NOx)..." At a public Shelby County Commissioner's hearing on April 9, 2025, residents living near the site of Colossus voiced complaints about air quality, noting that they have chronic respiratory issues related to living in a polluted section of Memphis. One woman said she smells "everything but the right thing and the right thing is the clean air." Other residents voiced frustration that Brent Mayo, the senior xAI official responsible for building out xAI's infrastructure, did not attend the meeting to discuss community concerns. Keshaun Pearson also stated that "We're getting more and more days a year where it is unhealthy for us to go outside." People living near the site of Colossus have said they were not offered the opportunity for a public review of the plans, nor were they provided with information on how their community could potentially benefit. The community is also concerned about the strain on the power grid. Memphis's peak demand is around 3 GW. In November 2024, TVA approved xAI's request for access to more than 100 megawatts of power to Colossus which is supplied by MLGW. In December 2022, MLGW imposed (then rescinded) rolling blackouts during several days of extreme cold, straining the power grid. In a letter to the TVA, the SELC "urged the agency to 'prioritize Memphis families' access to reliable power over the 'secondary purpose' of serving xAI". == Current progress == In early December 2024, Ted Townsend detailed how the power of Colossus doubled in its processing capability. When it first went online in September 2024, it was using "100,000 Nvidia H100 processing chips". This initial launch demonstrated Colossus to be the largest supercomputer globally. The maximum power consumption increased from 150 to 250 MW. As of June 2025, the supercomputer consists of 150,000 H100 GPUs, 50,000 H200 GPUs, and 30,000 GB200 GPUs. Another 110,000 GB200 GPUs are to be brought online at a second data center, also in the Memphis area. The expansion of this supercomputer has already been discussed and will be the second phase of the project. xAI also plans to increase Colossus to 1 million GPUs. Because the supercomputer currently utilizes gas turbines for power, alongside 168 Tesla Megapack battery storage units. xAI is also looking to add more

Executive Order 14179

Executive Order 14179, titled "Removing Barriers to American Leadership in Artificial Intelligence", is an executive order signed by Donald Trump, the 47th President of the United States, on January 23, 2025. The executive order aims to initiate the process of strengthening U.S. leadership in artificial intelligence, promote AI development free from ideological bias or social agendas, establish an action plan to maintain global AI dominance, and to revise or rescind policies that conflict with these goals. == Background == === Joe Biden === This executive order comes in response to the Executive Order 14110 titled Executive Order on Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence (sometimes referred to as "Executive Order on Artificial Intelligence") signed by Joe Biden on October 30, 2023. === Donald Trump === Donald Trump rescinded Executive Order 14110 on his first day in office with the Initial Rescissions of Harmful Executive Orders and Actions executive order. On January 23, 2025, Trump signed the Removing Barriers to American Leadership in Artificial Intelligence executive order as the replacement executive order covering the development of artificial intelligence technologies. == Provisions == It revokes existing AI policies and directives that are seen as barriers to U.S. AI innovation. It mandates the creation of an action plan within 180 days to sustain U.S. AI leadership, focusing on human flourishing, economic competitiveness, and national security. It requires the review of policies, directives, and regulations related to Executive Order 14110 (from October 2023) to identify actions that may conflict with the new policy goals. Agencies are instructed to suspend, revise, or rescind actions from the previous executive order that may be inconsistent with the new policy. The Office of Management and Budget (OMB) must revise certain memoranda (M-24-10 and M-24-18) within 60 days to align with the new policy. The order specifies that it does not create new enforceable rights or benefits and should be implemented within the boundaries of existing law and appropriations. == Implementation == The NITRD program, on behalf of the Office of Science and Technology Policy (OSTP), requested public input on the development of an AI Action Plan by March 15. == Reactions == Over 10,000 public comments were submitted in response to the OSTP request for public input. OpenAI submitted comments proposing a five-point strategy focused on regulatory preemption, export controls, copyright protections, infrastructure investment, and government adoption to ensure AI innovation, promote democratic AI globally, and protect national security. They emphasized the ability to learn from copyrighted material to maintain America's lead against China's state-controlled AI efforts like DeepSeek. Google submitted comments advocating for a three-pronged plan that invests in domestic AI development through energy infrastructure reform, balanced export controls, continued research funding, and coherent federal policies, while modernizing government AI adoption and promoting innovation-friendly approaches internationally. Both OpenAI and Google urged White House opposition to foreign copyright and transparency obligations, for example in the UK Government's preferred option in their Copyright and AI consultation.

SAS Viya

SAS Viya is an artificial intelligence, analytics and data management platform developed by SAS Institute. == History == SAS Viya was released in 2016. The software was containerized with the release of Viya 4 in 2020. Viya has become one of SAS' most widely used platforms during the AI boom, as artificial intelligence becomes more widely used in business and computing. == Technical overview == The platform is cloud-native, and is executed on SAS's Cloud Analytics Services (CAS) engine. It is compatible with open source software, allowing users to build models using open sources tool such as R, Python and Jupyter. It integrates with major large language models like GPT-4 and Gemini Pro. The platform uses econometrics to create predictive models for forecasting scenarios based on complex data. It also has features for detecting algorithmic bias, auditing decisions and monitoring models. It is implemented through a low-code, no-code platform. The software is available on Amazon AWS Marketplace, Google Cloud, Red Hat OpenShift, and on Microsoft Azure Marketplace under a pay-as-you-use model. == Software == SAS Viya has released software as a service (SaaS) modules for creating AI content. These include Viya Workbench, Viya App Factory, Viya Copilot, and SAS Data Maker. The company also develops industry specific models, used by companies including Georgia-Pacific. == Applications == === Banking === The software is also widely used in business, especially in areas such as predictive modelling and fraud detection. === Insurance === SAS Viya is used in insurance for tasks such as actuarial analytics and modelling, as well as regulatory reporting. === Healthcare and life sciences === In 2023, the company introduced SAS Health, a common health data model built on the SAS Viya platform. AstraZeneca has partnered with SAS to use SAS Viya and SAS Life Science Analytics Framework in its delivery and approval processes. In 2024, SAS partnered with the University of Cambridge's Maxwell Center to use SAS Viya for healthcare research and development. === Public sector === SAS Viya is used in partnership with national and local governments to provide services and detect tax fraud. === Education === SAS Viya is used in research and education, particularly studies related to business intelligence, cybersecurity and data management. SAS Institute has partnered with educational institutions such as Appalachian State University, Clemson University, University of Arkansas, Stockholm University, and Marian University, to provide access to and training for using SAS Viya.

Healthy Together

Healthy Together is a health technology company that provides software for Health & Humans Services Departments. Healthy Together supports a “One Door” approach to eligibility, enrollment, and management for programs like Medicaid, Supplemental Nutrition Assistance Program, TANF and WIC, as well as behavioral health (988), disease surveillance, vital records, child welfare and more. The platform's use is to increase the reach and efficacy of program initiatives, improve health equity and reduce cost. Software is available in the United States of America with current deployments in Florida, Oklahoma. The United States Department of Veterans Affairs also utilizes Healthy Together's mobile platform. == Development == Healthy Together launched in March 2020 and builds software for public health and health and human services departments. The Florida Department of Health began using the platform in September 2020 to deliver real-time test results to residents. Over 50% of households in Florida have adopted the mobile application. On December 6, 2022, the Advanced Technology Academic Research Center (ATARC) awarded Healthy Together and the State of Florida's Department of Health with a Digital Experience Award at their 2022 GITEC Emerging Technology Award Ceremony in Washington, D.C. to recognize success of the project. The partnership was also highlighted on the Federal News Network's show Federal Drive. The platform is also used at universities in Oklahoma. In November 2022, the United States Department of Veterans Affairs and Healthy Together announced a collaboration to expand access to health records for Veterans. The platform provides 18 million Veterans with access to their health information through their smartphones and mobile devices. In December 2022, the integration was recognized as one of Healthcare IT News' Top 10 stories of 2022.

Composite Capability/Preference Profiles

Composite Capability/Preference Profiles (CC/PP) is a specification for defining capabilities and preferences of user agents (also known as "delivery context"). The delivery context can be used to guide the process of tailoring content for a user agent. CC/PP is a vocabulary extension of the Resource Description Framework (RDF). The CC/PP specification is maintained by the W3C's Ubiquitous Web Applications Working Group (UWAWG) Working Group. == History == Composite Capability/Preference Profiles (CC/PP): Structure and Vocabularies 1.0 became a W3C recommendation on 15 January 2004. A "Last-Call Working-Draft" of CC/PP 2.0 was issued in April 2007