NVIDIA’s Results Mean AI Will Drain More Electricity


If there is a single indicator of the health of the AI industry, it is Nvidia’s financial results. It provides over 90% of the AI chips in the world. In the most recent quarter, revenue rose 56% to $46.7 billion.

AI server farms are built on several things. Among the two most important are chips and electricity. Without them,  AI would not exist in its current form or distribution. OpenAI ChatGPT had over one million downloads in July. In addition to these and other competing products, there are enterprise applications that form the backbone of AI use by giants such as Meta and Microsoft. 

$300 Billion Investment

Big tech companies have committed over $300 billion to building server farms for 2025. That number is expected to rise in future years. These companies are pairing with large utilities to provide electricity. They are also attempting to build infrastructure to power their server farms independently of the standard US grid. The significant growth has also attracted financial players to the industry, providing capital for these build-outs.

Nearly everyone in the industry admits that the current US capacity to support the severe farms is lacking. That leaves a significant problem. Who gets the electricity? Individual homes, legacy businesses, government, or AI companies. Electricity prices are already rising for many consumers. Politicians are starting to wade into the fight


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