From time to time, a number of billionaire people get together to discuss topics that are considered important. This time he played at the World Economic Forum in Davos, where Microsoft CEO, Satya Nadella, has issued a warning clear about the use of artificial intelligence and its excessive energy consumption. And for the executive, this technology only makes sense if it generates a real and positive impact on society, otherwise, “social legitimacy” would be lost to allocate scarce resources, such as energy, to its development.
Energy. It is no surprise that AI data centers consume massive amounts of electricity and water. They already did it before dedicating themselves purely to the operation of AI, but now that expense has more than multiplied.
A while ago, Sam Altman, CEO of OpenAI, gave some estimated figures about ChatGPT’s power consumption, stating that it used about 0.34 watt-hours for each response generated. On a larger scale, the combined electricity consumption of Microsoft and Google exceeded that of more than 100 countries in 2023, according to the analysis by Michael Thomas, founder of Cleanview.
The demand is not only energy, since a disproportionate volume of production of critical components is being allocated towards the development of projects related to AI, such as is happening with RAM in the world.
Nadella’s warning. During his intervention In Davos, the CEO of Microsoft said that “We will quickly lose even the social permission to take something like energy, which is a scarce resource, and use it to generate these tokens, if these tokens are not improving outcomes in health, education, public sector efficiency or private sector competitiveness.” The CEO of Microsoft assured that the ultimate goal must be “to use AI to change tangible results in people, communities, countries and industries.” Otherwise, “none of this makes sense.”
Tokens as a new global currency. Nadella mentioned in the conversation the “tokens” as the new currency among big technology companies. In this area, tokens are the basic processing units that users of AI models purchase to execute tasks. According to the CEO, “GDP growth anywhere will be directly correlated” with the cost of energy used in AI. In this way, Nadella says between the lines that if a country can produce tokens more cheaply, it will have a competitive advantage.
The medical example. Among the specific applications that Nadella sees as valuable is the use of AI in the healthcare sector. He mentioned doctors who can spend more time with their patients while AI transcribes consultations, enters data into medical records systems and assigns correct billing codes.
The risk of bubble. Nadella also addressed growing warnings about a possible AI bubble. For him, it will only be a bubble if everything remains in partnerships between technology companies and infrastructure spending. “A telltale sign that it’s a bubble would be if all we talk about are tech companies,” pointed out in his conversation with Larry Fink, CEO of BlackRock. The executive was confident that AI will “bend the productivity curve” and bring global economic growth, not just driven by capital expenditures.
Mass adoption necessary. Microsoft’s CEO also insists that companies must start using AI on a large scale, describing it as a “cognitive amplifier” that grants “access to infinite minds.” It calls for workers to develop AI skills, similar to “how they master Excel to improve their employability.” Microsoft plans to invest 80 billion dollars in building AI data centers, with 50% of that spending outside the United States.
Cover image | İsmail Enes Ayhan and World Economic Forum
In Xataka | Europe is discovering right now that the US is not the partner it thought. And that is a problem in AI.
GIPHY App Key not set. Please check settings