Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

AI’s growing demand for electricity needs sustainable solutions

Published 23/01/2024, 01:12 pm
© Reuters.  AI’s growing demand for electricity needs sustainable solutions
BTC/USD
-

Artificial Intelligence (AI) has become an integral part of modern technology, yet its future is contingent on resolving a critical energy crisis. The continued advancement of AI is not a guarantee unless an energy breakthrough occurs that would allow us to meet its growing demand for electricity.

The carbon footprint of AI is almost on par with Bitcoin, consuming energy equivalent to entire developed nations. Science Alert reported last year that the Information Technology industry's contribution to global CO2 emissions is around 2%, a figure expected to grow rapidly. Consulting firm Gartner predicts the AI sector alone will account for 3.5% of global electricity by 2030.

The training of GPT-3, a predecessor of ChatGPT, exemplifies this issue. It required approximately 1,287 megawatt hours and 10,000 computer chips, equating to the annual power usage of 121 average American homes. This process also produced around 550 tonnes of carbon dioxide. OpenAI, the developer of ChatGPT, reportedly spends about US$700,000 daily on computing costs to serve its global user base.

Need for carbon-free energy

Sam Altman, CEO of OpenAI, recently addressed this challenge. At a Bloomberg event alongside the World Economic Forum in Davos, he stressed the need for a breakthrough in carbon-free energy production to sustain AI's growth. Altman's investments reflect his commitment, with significant funding in nuclear fusion company Helion Energy and his role as chairman of nuclear microreactor company Oklo.

While AI's energy consumption is a concern, it also plays a crucial role in global decarbonization efforts. AI's capabilities in renewable energy forecasting, smart grid management, and new material development are vital for environmental sustainability. However, as Sasha Luccioni from Hugging Face notes, the environmental footprint of AI must be considered to ensure its responsible use in combating global warming.

Read more on Proactive Investors AU

Disclaimer

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.