Energy Costs Will Decide Which Countries Win the AI Race, Microsoft's Nadella Says

Energy costs will be key to deciding which country wins the AI race, Microsoft CEO Satya Nadella has said. CNBC: As countries race to build AI infrastructure to capitalize on the technology's promise of huge efficiency gains, Nadella told the World Economic Forum (WEF) on Tuesday that "GDP growth in any place will be directly correlated" to the cost of energy in using AI.

He pointed to a new global commodity in "tokens" -- basic units of processing that are bought by users of AI models, allowing them to run tasks. "The job of every economy and every firm in the economy is to translate these tokens into economic growth, then if you have a cheaper commodity, it's better."

"I would say we will quickly lose even the social permission to actually take something like energy, which is a scarce resource, and use it to generate these tokens, if these tokens are not improving health outcomes, education outcomes, public sector efficiency, private sector competitiveness across all sectors," Nadella said.