Power Concentration: The Hidden Force Behind AI's Rise

The disparity in GPU acquisition between the U.S. and China suggests a massive latent potential for power concentration in the latter, facilitating larger-scale AI operations. China's energy landscape, particularly near regions with abundant resources like the Three Gorges Dam, is highly diversified with a mix of coal, nuclear, and renewable energy sources that could support substantial data centers. In contrast, the U.S. faces limitations with smaller distributions of GPUs and energy capacity, making it challenging for any single entity to compete with China's collective power generation. The rapid construction of energy facilities and factories in China allows for the discreet transition of resources from traditional manufacturing, such as aluminum production, to advanced AI infrastructure. The scale of energy production in China, exemplified by gigawatt capacities, may mask significant shifts in industrial focus, underscoring the potential for AI development to thrive on the concentrated energy available in the region.