Satya Nadella knows that AI now has “social permission” to burn electricity. And also that everything has a limit

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.

China needs garbage to burn and it needs it so badly that people are digging it up to sell it to incinerators.

Until a few years, China was the dumping ground of the world. Voluntarily. Since the 1980s, garbage imports have helped China supply raw materials for its industry. Today, the situation has changed and China continues to have a very intense relationship with waste management. But a very different one. What they have left over now is not garbage, but incinerators to burn it. And that has caused old landfills to begin to be unearthed. Many plants of the country They are burning garbage from 20 years ago today. The great Chinese love affair with garbage. In 2016, China imported 7,350,000 tons of plastic and Hong Kong another 2,850,000. In total, they imported almost 70% of all the plastic waste moved around the world that year. That’s not counting paper, scrap or textiles. China was, for more than two decades, the world’s dumping ground. And it wasn’t an accident. In the 1980s, faced with the shortage of certain raw materials, the Chinese Government decided to start importing certain especially useful waste (plastic, paper, mineral slag or textile waste). “The most notorious case was probably the importation of electronic waste that was dismantled and reprocessed in terrible environmental conditions,” Erik Baark explained to us. Everything has an end. However, by the late 2010s, the Chinese situation had changed. In those years alone, the total volume of urban solid waste generated in the Asian giant increased from 158 million tons to more than 249 million. Suddenly, the Government understood that it was running out of space. So he took several measures. And what did he do? On the one hand, got serious about environmental regulations. In the summer of 2017, more than 800 companies were prosecuted for not complying with recycling standards. And, a few months later, authorities arrested more than 259 people for the illegal importation of 303,000 tons of garbage. But it wasn’t enough. And they prohibited imports. That was what affected us the most: the 2017-2018 decision plunged to the international garbage market (and especially to Western recycling systems) in a crisis from which we have not yet emerged. However, it was not the only thing they did. As Baark explains“the 12th Five-Year Plan (2011-2015) explicitly supported the incineration of municipal solid waste, with the aim of increasing the proportion of waste treated by incineration from 20% to 35% at the national level.” However, China does not know how to do anything by halves. In less than five years, incineration power plants experienced a real boom (from 428 in 2019 to 1010 in 2023). The goal for 2025 — a daily incineration capacity of 800,000 tons — had already been exceeded in 2022. And shortly after, this energy production system came to “process” 80% of the country’s waste. Today they have literally run out of trash. As I said, in recent months, Chinese and international media have reported on waste incinerators for energy recovery in large cities that operate at low capacity due to a lack of raw materials. It is the story of how the impressive operational capacity of the Beijing government goes too far, yes. But the consequences are very curious: because the plants continue looking for waste to burn. In fact, to the extent that plants compete with each other: the price of garbage is rising. And that seems to be causing in many areas of the country “old” garbage is being dug up. A present that is ending. But no one is aware that this is something temporary. If Chinese waste continues to grow so little by little (10% in recent years), the incineration model is going to enter a crisis. First, for the most obvious thing, of course: it is not sustainable. but also because It is still an emergency resource and not a rational waste management policy. The most interesting thing for us is that this more than predictable crisis It will also change our world. Image | 烧不酥在上海 老的 In Xataka | The European waste industry has been lying to us for years: in 2018 everything blew up and we still haven’t recovered

China has many garbage incinerators. So many, they don’t have enough garbage to burn

A few years ago, China was the world landfill. Since the 80s, countries around the world exported their garbage to China and processed them as raw materials for their industry. Today, China has a problem with waste management, but very different. What is left over is not garbage, but incinerators to burn it. Hungry incinerators. China has more than 1,000 garbage incineration plants for electricity generation. Combined, they have an ability to burn more than one million tons of garbage per day. Currently, according to a report from Cinda Securities These incineration plants are working at an average of 60% of their capacity, which represents an important underutilization of their resources. Because. The amount of waste continues to grow in China, the problem is that it does so at a lower rate than their management industry. According to South China Morning Post, Since 2019 solid waste has increased more than 10%, but incineration capacity has doubled. The reasons for this lag are, on the one hand, an economy in recession where it is urbanized at a slower pace, and on the other an excess of optimism of the past. On fire. Although they started building incineration plants much earlier, it was in the 2000s when China began a more powerful expansion. In 2015, China already had 223 plants working And he intended to double his ability. And what if they got it. In October of last year there were 1,010 incineration companies throughout the country. And all despite the numerous population protests and the Criticism of environmental organizations They estimate that, only in 2022, this industry issued more than 100 million tons of CO₂. It was seen coming. China did not count on a point where the population (and therefore the waste) would not grow so quickly. In addition to the Covid caused the migration of cities to less populated areas. This excess of optimism could have a pass in the first years, but according to statements by climate activist Chen Liwen to SCMPin 2020 it was already evident that there was a problem. Energy garbage. It is not just about eliminating waste, but also extracting energy in the process. The garbage incineration plants for energy production were part of the Chinese government plan for renewable energy. They offered many subsidies to companies that generated electricity with this system, which caused many companies to see a profitable business. It is estimated that such a plant takes ten years to recover the initial investment, so the situation of many of these plants is critical. Image | Chatgpt In Xataka | The European waste industry has been lying for years: in 2018 everything jumped through the air and we have not yet recovered

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