AI race may depend more on access to power, infrastructure than chip supply: Morgan Stanley

Morgan Stanley has warned that the development of artificial intelligence may be hindered by a lack of access to power and infrastructure rather than a shortage of computer chips. This is because the growing demand for AI is putting a strain on the electricity supply, with a predicted 32-gigawatt power deficit threatening data-center development and chip deployment. This could pose a significant challenge for smaller companies trying to compete with their larger counterparts. As a result, the US may struggle to keep up with global AI development.

Why it matters

The AI infrastructure market is expected to experience a significant electricity shortfall by 2028, which could hinder the growth of AI technologies. This shortage may impact companies that rely on AI infrastructure and lead to increased costs.

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