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AI's electricity use is spiking so fast it'll soon use as much power as an entire country
Futurism
Article

October 12, 2023

AI's electricity use is spiking so fast it'll soon use as much power as an entire country

AI chatbots like OpenAI's ChatGPT and Google's Bard consume an astronomical amount of electricity and water — or, more precisely, the massive data centers that power them do. In a recent analysis published in the journal Joule, data scientist Alex de Vries at Vrije Universiteit Amsterdam in the Netherlands found that by 2027, these server farms could use anywhere between 85 to 134 terawatt hours of energy per year. That's roughly on par with the annual electricity use of Argentina, the Netherlands, or Sweden, as the New York Times points out, or 0.5 percent of the entire globe's energy demands. Sound familiar? The much-lampooned crypto industry spiked past similar power consumption thresholds in recent years. It's a massive carbon footprint that experts say should force us to reconsider the huge investments being made in the AI space — not to mention the eye-wateringly resource-intensive way that tech giants like OpenAI and Google operate.

AI's electricity use is spiking so fast it'll soon use as much power as an entire country
Futurism
Article

October 12, 2023

AI's electricity use is spiking so fast it'll soon use as much power as an entire country

AI chatbots like OpenAI's ChatGPT and Google's Bard consume an astronomical amount of electricity and water — or, more precisely, the massive data centers that power them do. In a recent analysis published in the journal Joule, data scientist Alex de Vries at Vrije Universiteit Amsterdam in the Netherlands found that by 2027, these server farms could use anywhere between 85 to 134 terawatt hours of energy per year. That's roughly on par with the annual electricity use of Argentina, the Netherlands, or Sweden, as the New York Times points out, or 0.5 percent of the entire globe's energy demands. Sound familiar? The much-lampooned crypto industry spiked past similar power consumption thresholds in recent years. It's a massive carbon footprint that experts say should force us to reconsider the huge investments being made in the AI space — not to mention the eye-wateringly resource-intensive way that tech giants like OpenAI and Google operate.

Analysis: "AI’s $200B Question"
SEQUOIA
Article

October 10, 2023

Analysis: "AI’s $200B Question"

The goal of this analysis is to highlight the gap that we see today. AI hype has finally caught up to the deep learning technology breakthroughs in development since 2017. This is good news. A major CapEx buildout is happening. This should bring AI development costs down dramatically over the long-term. You used to have to buy a server rack to build any application. Now you can use the public clouds at a much lower cost. Likewise, today many AI companies are using a large portion of their venture capital on GPUs. As today’s supply constraints give way to a supply glut, the cost of running AI workloads will come down. This should spur more product development. It should also attract more founders to build in this space.

Analysis: "AI’s $200B Question"
SEQUOIA
Article

October 10, 2023

Analysis: "AI’s $200B Question"

The goal of this analysis is to highlight the gap that we see today. AI hype has finally caught up to the deep learning technology breakthroughs in development since 2017. This is good news. A major CapEx buildout is happening. This should bring AI development costs down dramatically over the long-term. You used to have to buy a server rack to build any application. Now you can use the public clouds at a much lower cost. Likewise, today many AI companies are using a large portion of their venture capital on GPUs. As today’s supply constraints give way to a supply glut, the cost of running AI workloads will come down. This should spur more product development. It should also attract more founders to build in this space.