AI Drains Energy in China

AI Drains Energy in China

Fərid Əlizadə · Texnologiya ·

Recent developments in the field of artificial intelligence, while enriching companies on one hand, are leading to the depletion of natural resources on the other. The increasing demand for artificial intelligence accelerators has resulted in an energy shortage. Microsoft announced that it does not have enough energy to power all its accelerators, while China has begun offering discounts to companies.

Redaksiya reports that China is experiencing an energy crisis. The decision to use artificial intelligence accelerators developed by the country's own companies has led to these relatively less efficient chips facing an energy crunch. As existing energy costs began to become a burden for firms, discounts became inevitable.

According to information, Chinese AI chips consume 30-50 percent more energy compared to Nvidia H20. This situation has led companies to demand discounts from local authorities. Local authorities in Gansu, Guizhou, and Inner Mongolia, where server systems are dense, have started applying discounts of up to 50 percent on electricity bills. On the other hand, it is reported that the discount is only valid for companies using local accelerators. This step aims to increase the competitiveness of Chinese firms and reduce energy costs within the country. The discounts are especially expected to be effective for Huawei. Since significant steps have already been taken in the field of alternative energy in the country, it is assumed that the energy subsidy will not cause a problem.