China will most probably win the AI race in the long run because of one major bottleneck the US has - energy. The electric energy and grid buildout in China has been massive since a long time and there is simply no way for the US to quickly catch up.
No matter how much cash you throw you can't just materialize a 100 nuclear reactors to power the data centers.
It's worth looking at similar industries with enormous electricity requirements such as aluminium smelting, where the plant can be located in a friendly country but the product is owned and controlled back in the US.
Aluminium is often described as "congealed electricity". Ship bauxite to wherever power is cheap and stranded, turn it into metal, and ship the metal out. Here in NZ, Tiwai Point is the textbook case, with London-based Rio Tinto running a smelter on the other side of the world that exists mainly because Manapōuri hydro had nowhere else to go.
AI data centres can be just the same - even more so, since the plant's assets (its chips) are virtually perishables, so there is less concern about assets becoming stranded if the host goes rogue. All the US needs is friendly and stable allied countries with cheap power.
margorczynski · · focus · HN ↗
No matter how much cash you throw you can't just materialize a 100 nuclear reactors to power the data centers.
beachy · · focus · HN ↗
Aluminium is often described as "congealed electricity". Ship bauxite to wherever power is cheap and stranded, turn it into metal, and ship the metal out. Here in NZ, Tiwai Point is the textbook case, with London-based Rio Tinto running a smelter on the other side of the world that exists mainly because Manapōuri hydro had nowhere else to go.
AI data centres can be just the same - even more so, since the plant's assets (its chips) are virtually perishables, so there is less concern about assets becoming stranded if the host goes rogue. All the US needs is friendly and stable allied countries with cheap power.
busssard · · focus · HN ↗
Datacenters enable anyone with a computer to use it.