@rohanpaul_ai: Ex Google CEO, Dr. Eric Schmidt: AI may hit a money wall before it hits a power wall. "The real limit to AI is not ener…

X AI KOLs Following News

Summary

Ex-Google CEO Eric Schmidt states that the real limit to AI is financial, not energy, estimating that 10 gigawatts of compute could cost half a trillion dollars, which only a few entities like the US or China can afford.

Ex Google CEO, Dr. Eric Schmidt: AI may hit a money wall before it hits a power wall. "The real limit to AI is not energy; it is actually cash. When you add up the cost of these things, if you take round numbers, say $50 billion per gigawatt, then 10 gigawatts is half a trillion dollars. How many companies, countries, and so forth can hand an industry a trillion dollars of capital? Very, very few. The Chinese could certainly do it. I do not know if they are doing it, but I am going to try to find out. In America, there are people who hope that is going to happen. It is interesting that you can finance these things because the brilliance of the American capital market allows us to borrow that kind of money. For example, the Europeans cannot do this, which they are sort of sore about." --- Full video from 'Special Competitive Studies Project' YT channel ( link in comment)
Original Article

Similar Articles

AI Is Too Expensive

Hacker News Top

The article argues that AI is too expensive to be economically viable for most companies, with hyperscalers spending trillions on data centers but failing to generate proportionate AI revenue. It suggests only hardware suppliers like NVIDIA benefit from the current AI bubble.

The AI Power Wall: Why marginal chip scaling won’t save us from the energy paradox

Reddit r/ArtificialInteligence

The article discusses the 'AI power wall' where compute growth outpaces efficiency gains, proposing four paradigm shifts—neuromorphic, photonic, memory-centric, and approximate computing—to make AI sustainable, and promotes the upcoming 'Watt Matters in AI' conference addressing full-stack energy reduction.