A few days after Macron opened the AI Conference in Paris, several French power stations caught fire. Why? They were supplying power to all the big AI companies using the same American formula ie stacking hundreds of thousands of Nvidia high end chips. What is the problem? The Nvidia chips are consuming huge amount of energy causing overload in the French power stations. Adopting the American AI infrastructure requires enormous amount of power supply, enough to supply a big city. This is why Microsoft and Amazon are investing billions to build their own power supply.
American AI infrastructure, designed to be a monopoly, a new American hegemony, is about a wall built with huge funds, high barrier to keep everyone else up but dependent on the Americans and to pay a high ransom for usage. The chips are not the only high cost item, the pool of tech specialists is not cheap, and the power plant and security cost built around it all costs a lot of money.
How many countries can afford the cost of building their own American designed AI infrastructure when they don't have the money, and the power plant to provide the necessary power? Yes, they need to build little nuclear power stations to serve this big power gulping monster of high end chips.
The next big question, is the need for AI justify the huge investment cost? How many countries or corporation need such expensive AI services? And there are many very affordable AI providers that are available now. China is not just rolling out DeepSeek to satisfy most of the users, especially the individual users, it is coming out with at least 3 more AI apps that are as good or better than DeepSeek practically for free. This immediately cuts down the pie for the big American AI monster machine and it is looking like the billions or trillions ploughed into the system would be like throwing money into a bottomless pit, with little or no returns.
Big and expensive American AI models are turning into a big hoax. The power grids of many smaller and developing countries would not be able to afford such systems. The value does not justify the high expenditure, and when cheap and less energy intensive systems would do the same tasks adequately.
1 comment:
No wonder our electric/water charges are so high. We are basically subsidising the big businesses like data center/chip manufacturing/AI usage in G institution/bit coin mining. Do we really need this power hungry industries? as they don't really employ lot of sillyporean. Lately the G now talking up nuclear power, so expect more power hungry business to be invited to setup shop here. As for sillyporean, enjoy paying more for your power/water consumption that all.
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