Will Nvidia Be World’s Largest Pollutor?
Microsoft recently published its document on energy use, which appears every year. Its emissions surged 30% last year, and management doubts it can reach amphibious carbon reduction goals for 2030. Nvidia is at the heart of companies’ ability to run AI applications. According to The Motley Fool, “It has an estimated 80% share of the global GPU semiconductor market, and an estimated 98% share of data center GPUs, which are used to run high-powered AI models.”. Although much of this may be indirect, Nvidia could contribute as much to the climate crisis as any tech company worldwide.
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“According to Wells Fargo, AI data centers alone are expected to add about 323 terawatt hours of electricity demand in the U.S. by 2030, seven times greater than New York City’s current annual electricity consumption of 48 terawatt hours. Gartner predicts that most AI GPUs will draw 1,000 watts of electricity by 2026, up from the roughly 650 watts on average now.” Google’s AI Overview shows.
Will The Grid Get Better?
It is too early to say whether Nvidia can create products that cut the energy required for AI growth. It is also too early to say whether they may be high-tech grid solutions or a more rapidly growing renewable energy pool. However, absent this AI, energy consumption, most of which continues to use fossil fuels, will soar.
Microsoft management has made the point that AI energy consumption is valuable because AI will create a more energy-efficient future. However, it’s too early to tell.
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