Musk Says AI May Face Power Generation Bottleneck by Mid Next Year

On Tuesday, Musk stated that as the tech industry builds increasingly large data centers, the development of artificial intelligence might encounter a power generation capacity bottleneck by mid-next year. In an interview, Musk mentioned that his AI startup xAI is planning to construct a gigawatt-level facility near Memphis, Tennessee, which is expected to be completed within six to nine months. According to data from the U.S. Department of Energy, one gigawatt is equivalent to the power generation capacity of a typical nuclear power plant in the United States. Musk pointed out that there are three major constraints AI faces when scaling up: chips, transformers, and power generation capacity. Musk said, "Once we solve the transformer shortage, we will fundamentally address the power generation shortage. My guess is that perhaps by mid-next year or the end of next year, people will start encountering challenges in power generation." In February, Google also warned that the U.S. is facing a power crisis. Caroline Golin, Google's Global Head of Energy Market Development, stated that the company began exploring nuclear energy applications after realizing that renewable energy might lead to grid instability.