Altman and Nadella need more power for AI, but they’re not sure how much

The article discusses the challenge faced by AI leaders like OpenAI CEO Sam Altman and Microsoft CEO Satya Nadella regarding the uncertain and rapidly growing power demands for AI infrastructure. While much attention has been on acquiring GPUs and compute capacity, the real bottleneck has shifted to securing sufficient electrical power and data center facilities to deploy these chips. Nadella highlights that Microsoft currently has more chips than it can power or house, due to delays in building data centers with adequate power supply. This reflects a broader industry issue where electricity demand from data centers has surged in recent years, outpacing utility capacity expansions and forcing developers to seek alternative power arrangements. Altman expresses concern about the risks associated with long-term energy contracts if cheaper energy sources emerge unexpectedly, but he remains optimistic about AI’s exponential efficiency improvements driving ever-increasing demand. He has invested in nuclear energy startups as potential future solutions, though these and other fossil fuel-based power plants face long lead times before becoming operational. The article also notes the appeal of