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Motley Fool Money

The Next AI Investment Story: Power

Sep 16, 2024
In this discussion, Asit Sharma, an investment analyst at The Motley Fool, dives into the soaring energy demands of AI technologies, revealing that a single query can consume ten times more electricity than a typical Google search. He explores the potential benefits for companies tackling these demands and examines Under Armour's challenges. Brendan Hughes, author of "Markets in Chaos," shares his concerns about rampant money printing in the U.S. and highlights gold's role as a timeless store of value amidst economic fluctuations.
29:24

Podcast summary created with Snipd AI

Quick takeaways

  • The energy consumption of AI systems far exceeds that of traditional technologies, necessitating a shift towards clean energy solutions and innovative power generation strategies.
  • The increasing demand for electricity linked to AI advancements signals potential economic growth, presenting both opportunities and challenges for the energy sector.

Deep dives

The Energy Demand of AI Technologies

The substantial energy requirements of AI technologies, particularly large language models, significantly exceed those of traditional search engines. A report indicates that a single query to a model like ChatGPT consumes ten times the electricity of a standard Google search. This high energy consumption stems from complex mathematical processes required for prediction and inference within neural networks, making these systems incredibly 'thirsty' for power. As AI companies increasingly rely on data centers, the demand for electricity is projected to rise substantially over the next decade.

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