Data gold rush: companies once focused on mining cryptocurrency pivot to generative AI

Since generative AI exploded into global consciousness in 2023, an unprecedented demand for computing power has emerged alongside the demand for apps utilising the technology.

Tool’s like OpenAI’s ChatGPT require thousands of Nvidia GPUs (graphics processing units) to smoothly process all the information being fed in and output. Nvidia last week compared GPUs to rare earth metals for AI, saying they’re “foundational” for the operation of generative AI today.

The energy required to power all this hardware is the equivalent of a small country, according to a report released by French energy company Schneider Electric last year. On Wednesday OpenAI’s CEO, Sam Altman, told an audience at Davos that an energy breakthrough was needed to power AI advances. “There’s no way to get there without a breakthrough,” he said, suggesting it was motivation for investing more in nuclear fusion.

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