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AI Demand 'Virtually Limitless,' With Energy Supply as the Sole Bottleneck, Say Industry Leaders

From Liberty Times · () Chinese

Translated from Chinese, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Industry leaders state that AI demand is virtually limitless, with no signs of overcapacity in AI construction.
  • The primary bottleneck for AI development is energy supply, not computing power or data centers.
  • While demand remains strong, companies are becoming more rational in their spending, focusing on return on investment and cost-effective computing resources.

Despite recent volatility in AI-related chip stocks, industry leaders assert that the demand for artificial intelligence is virtually limitless, with no indications of overcapacity in AI construction. Instead, the true constraint on AI development is energy supply, not computing power or data centers.

Increasing intelligence can bring unlimited economic value. AI demand is almost limitless, and the real bottleneck is energy.

— Pat GelsingerHighlighting the immense potential of AI and identifying energy as the primary limiting factor for its growth.

Pat Gelsinger, CEO and partner at Playground Global and former Intel executive, stated, "Increasing intelligence can bring unlimited economic value. AI demand is almost limitless, and the real bottleneck is energy." This sentiment is echoed by others in the industry. Marc Boroditsky, Chief Revenue Officer at Nebius, revealed that market demand is astonishing and has far exceeded the company's supply capacity for some time. Andrew Feldman, CEO of Cerebras Systems, noted that the industry's computational demand far surpasses available capacity, with shortages in data centers and materials being the current reality.

the market demand is very astonishing, far exceeding the company's supply capacity, and this situation has been going on for a while.

— Marc BoroditskyDescribing the current high demand and supply constraints in the AI market.

Michael Hurlston, CEO of Lumentum, further highlighted the intense demand, reporting that his company's orders for photonic and optical products used in data center connectivity are fully booked for the next five years, necessitating a full-scale production increase. While demand remains robust, companies are adopting a more discerning approach to spending. Following a period of unbridled expansion driven by "Token Maximization," financial officers are now rigorously scrutinizing return on investment (ROI).

the entire industry's computing demand far exceeds available capacity, data center shortages and material scarcity are the current situation.

— Andrew FeldmanEmphasizing the significant gap between the industry's computational needs and the available resources.

The industry is transitioning towards a more rational technological cycle. With the advent of more affordable and performant open-source models from companies like DeepSeek and Alibaba, businesses are increasingly opting for the most cost-effective computing resources tailored to specific workloads, moving away from a sole pursuit of expensive cutting-edge models.

orders for our photonic and optical products used in data center connectivity have been completely snatched up for the next 5 years, and we are currently working hard to increase production capacity.

— Michael HurlstonIllustrating the long-term demand for data center infrastructure components.
DistantNews Editorial

Originally published by Liberty Times in Chinese. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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