OpenAI Sounds Alarm, Google Go Nuclear, Amazon Job Cut: Inside AI Boom
The global AI boom is accelerating faster than expected, but a new challenge has emerged — energy. As technology advances, the world faces growing pressure to power artificial intelligence responsibly.
OpenAI Sounds the Alarm on Energy Demand
The artificial intelligence boom is reaching a new kind of limit — electricity.
According to reports shared by The Kobeissi Letter, OpenAI has asked the U.S. government to significantly expand its power capacity to keep pace with China and sustain the country’s AI growth.
In a filing to the White House, OpenAI called for adding 100 gigawatts of new power each year to close what it calls the “electron gap” with China. The message is clear: AI needs more power.
America’s Data Center Explosion
The United States is now home to 5,426 data centers, more than all other major countries combined. Another $40 billion worth of data centers are currently being built — a staggering 400% increase since 2022.
Source: The Kobeissi Letter X
These facilities form the backbone of Artificial Intelligence development , housing massive computing systems that train and run advanced models. But this expansion comes at a cost: an enormous appetite for electricity.
Google Turns to Nuclear Energy
The power challenge is already pushing tech giants toward new solutions.
Google has reportedly begun purchasing nuclear power to run its data centers. Energy company NextEra Energy ($NEE) plans to restart a 615-megawatt nuclear plant in Iowa — closed since 2020 — specifically to supply Google’s operations.
The plant is expected to resume operations by 2029, and NextEra’s stock has surged on the news. Analysts say it signals a broader trend — AI’s future may depend on nuclear energy.
Government Joins the AI Arms Race
Recognizing the growing competition, the U.S. Department of Energy has formed a $1 billion partnership with AMD to build two new supercomputers.
The transition underscores the fact that governments are actively getting into the AI competition and making sure that they possess both computational and energy capabilities to remain at the top.
Technology Stocks Skyrocket on AI
Recently, Chipmaker Qualcomm ($QCOM) stock has increased more than 20% in one day after it announced the new AI chips to compete with AMD and Nvidia. This highlights the fact that AI innovation is not only transforming industries but also creating market momentum in the tech and energy industries.
Source: X
AI May Decelerate Due to Power Crises
Professionals are concerned that the digital revolution may decelerate unless significant investments are made in energy infrastructure.
In 2035, AI data centers alone may be using 1,600 terawatt-hours (TWh) of energy, approximately 4.4% of the total world supply. U.S. electricity prices have increased by 23% since ChatGPT was introduced in late 2022, and by 40 percent since 2020, which is significantly more than the overall inflation.
Source: X
The New Commodity: Power
With the further development, electricity is becoming the most important resource. Corporations and governments are both in search of alternative and renewable power to drive the next generation of Artificial Intelligence models.
China , in particular, is still ahead of the U.S. in the general power generation capacity, providing it with an advantage in the technological race.
Source: X
AI Investment Keeps Rising
The world AI expenditure is expected to reach $1.48 trillion in 2025, an increase of 50% annually, and $3.3 trillion by 2029. The trend is irresistible, with 89% of large companies intending to increase their generative budgets, although only when the world can produce sufficient electricity to support the process. Ultimately, power could be the determining factor of who controls the technical era.
Source: X
Human Job Market.
Amazon Jon Market planning to retrench approximately 30,000 corporate workers, which will be its biggest layoff in history.
The relocation is a change as the company relies more on Artificial Intelligence and robotics to automate and become more cost-effective, which is indicative of a larger trend of artificial intelligence slowly taking over human jobs in industries.
Conclusion
The development does not solely rely on innovation, but it also depends on electricity. With the increase in automation and the explosion of electricity demand, we may no longer be governed by intelligent people, but rather by a lot of energies.
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