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Summary

The video explores the growing energy demands caused by AI, particularly with tools like ChatGPT, which consumes significantly more power than traditional Google searches. It highlights companies like Verve, Broadcom, and Marvell that are creating solutions to manage the energy consumption and cooling challenges in data centers. The AI boom is projected to increase power demand by 160% by 2030, making energy-efficient infrastructure crucial. The video also touches on custom AI chips and how investors can capitalize on these trends through innovations in cooling, chip design, and data center optimization.

Takeaways

• 🔋 **AI Power Consumption**: A single Chat GPT query consumes up to 10 times the electricity of a Google Search.
• 📈 **Growing Power Demand**: Power demand from data centers has doubled in the last 5 years and is predicted to grow by another 160% by 2030.
• 🌐 **Global AI Market Growth**: The global AI market is expected to grow almost 12 times over the next 8 years with a CAGR of 36.8%.
• 💧 **Cooling Solutions**: Verve Holdings provides power and thermal management solutions, including liquid cooling systems for data centers.
• 💻 **Custom AI Chips**: Broadcom designs custom power-efficient AI chips for tech giants like Google and Meta Platforms.
• 🔌 **Efficient AI Chips and Switches**: Marvel makes efficient AI chips and switches for data centers, aiming to reduce power consumption.
• 📊 **AI Training Energy**: Training large AI models, especially trillion-parameter models, is very energy-intensive.
• 🏭 **Data Center Infrastructure**: Many data centers need to make infrastructure changes to support more efficient cooling and AI workloads.
• 💹 **Investment Opportunities**: The Fundrise Innovation Fund offers a way to invest in top private pre-IPO companies in the AI and data infrastructure space.
• 🚀 **Broadcom's Dominance**: Broadcom leads the ASIC market with a 55-60% share and is a key player in AI and data center infrastructure.

Q & A

How much electricity does a single Chat GPT query consume compared to a Google Search?

A single Chat GPT query consumes up to 10 times the electricity of a Google Search. Specifically, a Chat GPT prompt costs 2.9 watt-hours, while a Google search uses around 0.3 watt-hours.

What is Goldman Sachs' prediction for power demand from data centers by 2030?

Goldman Sachs predicts that power demand from data centers will grow by another 160% by 2030.

What is the significance of Verve's liquid cooling systems in the context of AI power consumption?

Verve's liquid cooling systems are significant because they provide power and thermal management solutions for data centers, which are crucial for handling the high power consumption of AI applications. These systems are designed for high-density deployments and can integrate with existing data center infrastructures.

What is Broadcom's role in the AI chip market?

Broadcom is a leader in the ASIC market with a dominant 55 to 60% share and a major focus on AI and data center infrastructure. They co-designed the last six generations of Google TPUs and are involved in designing custom power-efficient AI chips for tech giants like Google and Meta Platforms.

How does Marvel's involvement in the ASIC market compare to Broadcom?

Marvel is the second-largest company in the ASIC market with around a 14% share. They have partnerships with hyperscale customers and are expected to double their share of the overall data center accelerator market in the coming years.

What is the projected growth rate of the global artificial intelligence market over the next 8 years?

The global artificial intelligence market is expected to almost 12x over the next 8 years, which is a compound annual growth rate of 36.8%.

How does the power consumption of AI models during training compare to inference?

Training and retraining large AI models is very energy-intensive, especially when we're talking about trillion parameter models. For example, GPT-4 took over 50 gigawatt-hours to train, which is about 0.2% of the electricity generated by the entire State of California over a year.

What is the projected growth rate for the liquid cooling market for data centers by 2030?

The liquid cooling market for data centers is expected to more than quadruple by 2030, which would be a compound annual growth rate of 27.6% for the next 6 years.

How does the age of the US power grid impact the power consumption of AI?

The average age of the US power grid is around 40 years old, with over a quarter of the grid being 50 years old or older. This aging infrastructure can struggle to meet the increased power demands of AI, which can exacerbate power consumption issues.

What is the significance of the Fundrise Innovation Fund in relation to AI investments?

The Fundrise Innovation Fund provides regular investors access to some of the top private pre-IPO companies in the AI and data infrastructure sectors, allowing them to invest in the next generation of AI applications before they go public.