AI energy consumption is shocking!

AI Energy Consumption

Powering artificial intelligence (AI) models takes a substantial toll on our planet’s energy resources.

Delving deeper into AI, it becomes crucial to comprehend the environmental impact of this technological revolution.

Current trends

A new peer-reviewed study featured in ‘Joule‘ highlights the significant energy requirements of AI. The research, carried out by Alex de Vries, a data scientist at the Dutch central bank, provides a quantification of the energy usage linked to the trends in AI capacity and adoption.

The energy appetite of AI

The AI industry is experiencing rapid growth as major technology companies incorporate AI-driven services into their platforms. These applications require significantly more power than traditional ones, resulting in online interactions that are more energy-intensive.

Projected impact

Continuing on the present course, NVIDIA could be dispatching 1.5 million AI server units each year by 2027. If these servers were to run at maximum capacity, they would consume a minimum of 85.4 terawatt-hours of electricity annually. For comparison, this amount of energy surpasses the yearly consumption of numerous small nations.

Comparisons

By 2027, it is projected that global AI-related electricity consumption may rise by 85 to 134 terawatt-hours (TWh) annually. This estimate is on par with the yearly electricity requirements of nations such as the Netherlands, Argentina, and Sweden.

Why sustainability matters

While AI heralds significant breakthroughs, its sustainability is a crucial risk factor to consider. Picture Google’s search engine evolving into a ChatGPT-style chatbot, managing nine billion interactions daily. This would cause energy demands to soar, matching the consumption of a nation like Ireland. Although this scenario isn’t immediately likely due to logistical limitations, it highlights the resource-intensive nature of generative AI applications.

As we explore the AI domain, sustainability should not be neglected. Discussing AI’s risks, such as errors and biases, should also include its environmental impact. Innovation must be balanced with responsible energy use for a sustainable future.

Conclusion

In essence, AI’s demand for power is substantial, and the challenge is to leverage its capabilities while reducing its environmental impact. We must proceed with caution to ensure our technological advances do not compromise the health of our planet.

Tesla shares jump after affordable model announcement despite revenue drop shown in latest accounts

Electric vehicle

Tesla’s profits have significantly decreased so far in 2024, prompting the company to accelerate the introduction of new models.

The company is also reducing its workforce by thousands in an effort to improve its financial outlook. The electric vehicle manufacturer reported earnings of $1.13 billion for the first quarter, a sharp decline from $2.51 billion in the previous year.

Job losses

Owned by billionaire Elon Musk, Tesla plans to lay-off over 6,000 workers across its Texas and California locations. The firm has been challenged by reduced demand and increased competition from more affordable Chinese imports, resulting in a 43% drop in its stock value throughout 2024.

This month, Tesla announced a 10% cut in its global workforce. Revenue figures for the first quarter of 2024 showed a total of $21.3 billion, falling short of the anticipated $22 billion.

However, Tesla’s shares saw a nearly 12.5% increase in after-hours trading following the announcement that the launch of new models would be moved up from the latter half of 2025. The company has yet to disclose the pricing for these upcoming vehicles.

On other Tesla matters…

Mr. Musk’s ‘compensation package’, previously valued at $56 billion, was rejected by a Delaware judge. The judge reportedly determined that Tesla’s directors failed to fulfill their duties to the company when they awarded Mr. Musk the payout.

With the decline in Tesla’s stock value, the compensation package is now estimated to be about $10 billion less, yet it remains larger than the GDP of many small countries.

Musk also appears to have his sights set on creating a Tesla manufacturing hub in India.

Tesla’s Cybertruck was reportedly recalled recently with a suspected accelerator pedal issue.