In today's episode the hosts ask is the energy cost of Ai too high? They discuss how AI enables breakthroughs across industries but requires a staggering amount of electricity to power the algorithms, data crunching and data centers. A single query to ChatGBT consumes 10x more energy than a typical Google search. At scale, the AI boom is putting strain on the power grid.

Key Points

- Data centers alone projected to consume 20% of total US electricity by 2030. This has a concerning carbon footprint as natural gas is commonly used.

- Microsoft, Amazon and Google are making strides towards 100% renewable energy for powering AI by 2025-2030. But is this fast enough to mitigate the exponential growth in energy needs?

- The emergence of local computing (e.g. Copilot PCs) may shift some of the energy load away from data centers. However, this also implies additional power consumption on devices.

- Chip manufacturers are focused on developing more energy efficient AI chips. But adoption may outpace innovation, deepening the hole of energy consumption.

- Besides electricity, data centers also consume massive amounts of water for cooling purposes.

Role of Open Source

- The group discusses whether open source models are inherently more energy efficient than closed source alternatives, reducing redundancy.

Key Takeaways

- Rapid growth in AI adoption is putting unprecedented strain on aging energy infrastructure. Major investments needed to supply sufficient renewable power.

- Open source models may mitigate energy costs but major players continue aggressive model development.

- More transparency needed on full environmental impact of AI boom.