Elon Musk has issued a warning that can be dubbed a reminder of how China already has an edge in the AI race. He said that on Earth will hit a massive hardware wall revealing that it is nearly impossible to build and scale new AI data centres anywhere outside of China due to a severe global electricity shortage. In conversation with podcaster Dwarkesh Patel and John Collison, the Tesla founder also said that while the production of advanced AI chips is growing on an exponential level, the world’s electrical grids are completely stagnant.
Elon Musk said, ‘The availability of energy is the issue,” Musk explained to Dwarkesh Patel in an interview clip Tesla CEO shared recently, adding, “If you look at electrical output outside of China… It’s more or less flat. Very slight increase, but pretty much flat.’
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As suggested by Elon Musk, China is the only country that is rapidly increasing its electrical output to match the intense demands of the AI boom. He also raised a stark warning for US tech firms, ‘If you’re putting data centres anywhere except China, where are you going to get your electricity? Especially as you scale… How are you going to turn the chips on? Magical power sources? Magical electricity fairies?’
He also stated that within the next 30 to 36 months, space will become the cheapest and most economically compelling place to run artificial intelligence. He also talked about the benefits of GPU data centres in orbit. One of the elements is increased solar efficiency due to the absence of an atmosphere to block light. Furthermore, he also stated that no battery overhead space-based solar arrays can catch constant sunlight, orbital data centres completely eliminate the huge costs connected to grid-scale backup.
