The CEO of Tesla and SpaceX says the AI trade isn't about chips anymore. It's about electricity.
Elon Musk, on stage with BlackRock's Larry Fink at Davos. The insights worth keeping:
AI chip production is rising exponentially. Power capacity grows 3 to 4% a year, at most.
So by later this year the world makes more AI chips than it can plug in. Everywhere except China.
China is building 100 GW of nuclear right now. Its solar alone could run half the US grid.
The bottleneck isn't compute. It's the grid.
His fix: move the data centers off Earth. Solar in space is 5x stronger, and cooling is free at 3 Kelvin.
He says the cheapest place to run AI will be space within 2 to 3 years.
Meanwhile the cost of AI itself keeps falling month to month.
Open models trail the closed ones by about a year.
The chip names get the headlines. The power and the orbit get the returns.
Thanks for the interview!
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NVIDIA CEO, Jensen Huang:
"Nobody writes prompts anymore. The new job is to write and handle loops."
He calls it the shift that defines the rest of 2026.
Interview was out just yesterday.
Watch the 23 minute talk, then save the full framework below👇