[News] GPU Shortage Issue for AI Eased, Followed by a New Problem

---

---

As generative AI models like OpenAI sweep across the globe, the demand for high-performance GPU has been on the rise. For instance, NVIDIA’s GPU products are in tight supply and often reportedly out of stock. Industry analysis reveals that NVIDIA’s high-performance GPU is manufactured by TSMC and packaged using CoWoS technology. However, TSMC’s advanced CoWoS packaging capacity is insufficient to meet the AI demands. Later, TSMC actively expanded CoWoS production, and NVIDIA’s GPU shipments gradually stabilized as capacity increased.

Notably, new challenges present following the ease of GPU shortage problem.

Recently, Mark Zuckerberg, CEO of Meta, stated publicly that the GPU shortage in AI data centers is being alleviated, while the future bottleneck will be power supply.

As GPU supply become less tight, companies kick-start big investment in building data centers and other infrastructure facilities to be in tune with the AI development trends.

Zuckerberg believes that the next crux for AI development will be power supply. He noted that many new data centers could consume 50-100MW, and large data centers could reach up to 150MW. As the scale of data center power consumption continues to grow, AI industry may hit a power supply bottleneck.

The energy industry, unlike the AI sector, does not find building new power plants a simple task. Given factors such as regulations (Especially nuclear energy), power transmission planning, and construction, it could take several years from planning to the actual integration of new power into the grid. Therefore, capital investments fail to yield results in a short time, and the delivery of additional power supply lags far behind the construction of data centers.

To address the potential future power crisis, media reports indicate that Meta is currently collaborating with Silicon Ranch, a solar energy company in Georgia, to supply power to its data centers.

Likewise, Tesla CEO Elon Musk also issued a warning regarding AI development in April 2024, stating that the next shortage facing AI will be power, and there may not be enough electricity to run all the chips next year.

Besides, OpenAI CEO Sam Altman has also stated that AI will consume more power than expectation, and future AI development will require breakthroughs in clean energy.