New Economy

Global AI Battle Turbocharged by 50% Power Demand Surge

Governments have only begun to grasp the major shifts in policies and politics the “age of electricity” may bring.
Exhaust pipes on a NextDC data center in Sydney, Australia. Photographer: Brent Lewin/Bloomberg
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A famous diagram shows human needs as a pyramid, with the most important ones like food and shelter at its foundation. Jensen Huang has now come up with something similar to “Maslow’s hierarchy,” but for AI. And it all rests on electricity.

In a Davos presentation last month, the Nvidia Corp. boss unveiled his vision of the artificial intelligence buildout in the form of a “five-layer cake.” Near the top is where economic value is created, via the models that drive AI and the applications that make it work for businesses. But the base layer – the sponge in the cake — is energy.