A Deluge of A.I. Computing Power Is About to Come Online, Fueling Major Leaps

Key Points:

• Artificial intelligence (A.I.) has achieved significant milestones recently, including passing the bar exam, aiding Alzheimer’s research, solving long-standing math problems, and even rogue hacking incidents, signaling rapid advancement driven by massive increases in computing power.
• Hundreds of new data centers worldwide are being built to support A.I. development, with the number of specialized A.I. chips expected to grow from 20 million today to around 200 million by 2028, marking the largest infrastructure build-out in history.
• The U.S. leads the global A.I. infrastructure race, controlling about 80% of computing power, while China is rapidly expanding its capabilities despite export controls and aims to close the gap through national priorities and heavy investment.
• The surge in data centers raises environmental and economic concerns, including high electricity consumption and public opposition, with potential impacts on electricity prices and resource use becoming political issues, especially in the U.S.
• Experts warn that while A.I. will transform labor markets by automating tasks and creating new jobs, this shift will be disruptive, and ongoing advancements like recursive self-improvement could accelerate A.I.’s capabilities with minimal human intervention.