There’s a big buzz around artificial intelligence (AI) and its potential to change the world. But much less has been said about its energy footprint.
Companies that help solve this energy conundrum could enable a sustainable future for this burgeoning technology - and create opportunities for equity investors. What’s known as “generative” AI uses machine learning to generate content - including text, audio, video and images. OpenAI’s wildly popular ChatGPT is perhaps the most well-known example. There are countless applications for generative AI, from academic writing to audio and video editing to scientific research.
Companies everywhere are hunting for AI applications that can enhance productivity and create business benefits in industries ranging from healthcare to investment management. But here’s the rub: AI requires massive computational power to train models. And that raises a thorny issue - namely, the energy impact of AI.
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