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Musk says artificial intelligence could hit power generation bottleneck by mid-next year

Musk said on Tuesday that as the technology industry builds increasingly large data centers, the development of artificial intelligence may encounter a power generation bottleneck by the middle of next year. Musk said in an interview that his AI startup xAI is planning to build a gigawatt-level facility near Memphis, Tennessee, which will be completed within six to nine months. According to data from the US Department of Energy, 1 gigawatt is equivalent to the power generation capacity of an average nuclear power plant in the United States. Musk pointed out that artificial intelligence faces three major limitations when scaling up: chips, transformers, and power generation capacity. Musk said, "When we solve the shortage of transformers, we will fundamentally solve the shortage of power generation. My guess is that maybe by the middle or end of next year, people will start facing challenges in power generation." Google also warned in February that the United States is facing a power crisis. Caroline Golin, head of global market development for Google Energy, said that the company began exploring the application of nuclear energy after realizing that renewable energy could lead to an unstable power grid.

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