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Why AI Data Centers Are So Important For Development

less than 1m read
·Nov 7, 2024

This is the biggest problem we have in terms of staying ahead in AI, particularly for defense. So, this issue, which you saw manifest itself in the last 24 hours, is about data center costs. Each center costs $2 to $4 billion. There are only 25 teams trying to develop these things; I know them all. They are searching all across North America to find the power, and there isn't any.

Stewart, but Make, but Microsoft, they do have the money. They have the money, but they don't have the power, and so you can't do it. But they've got the money to build. The only states that may be able to pull this off would be West Virginia; they have stranded gas. Alberta up in Canada has a lot; Texas has some, and that's it. New Mexico, that's it.

Well, they could go to nuclear, couldn't they? Oh yeah, 20 years from now that's great. I'm talking about you could have a small nuclear reactor to power one beta. I hope that happens, but that's not happening in 24 months, not even happening in 10 years. You heard about Three Mile Island; you're dreaming if you think that's online in the next decade.

So, think this is a permanent problem for Meta and Microsoft—a massive problem—and it's going to be talked about a lot more in the weeks ahead. They can't find the power.

Culture with Brian Chesky and Alfred Lin (How to Start a Startup 2014: Lecture 10)
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