NVIDIA's Monopoly Over The AI Markets Isn't Sustainable, Analyst Worries About Increasing GPU Power Consumption

NVIDIA's Monopoly Over The AI Markets Isn't Sustainable, Analyst Worries About Increasing GPU Power Consumption

NVIDIA's monopoly on AI markets is now being questioned. Several analystswho claim that the increase in GPU power consumption will not be sustainable in the future.

If NVIDIA wants to continue at the current pace, they will have to opt for a more “power-efficient” solution, the analyst says.

We all seem to be well aware of how NVIDIA has played its cards in the AI ​​segment, whether by gaining popularity among clients through its hardware arsenal or witnessing immense interest from startups.

Everyone out there sees NVIDIA as their primary source of hardware, but it seems some people are more concerned about power consumption, as not only has the firm's share price seen all of its history. , but many analysts see the current approach as unsustainable. And here's why.

Korean media reports that while NVIDIA has managed to gain mass adoption of its latest AI accelerators, the reality is that analysts are concerned about increased power consumption. While average users know a data center equipped with thousands of NVIDIA accelerators as “fun,” it's quite the opposite in terms of environmental impact. Team Green's A100s and H100 AI GPUs are known to be power-hungry, and when combining millions of them, imagine the power they'll need.

Global data center electricity consumption is expected to grow from 85 to 134 terawatt-hours by 2027, equivalent to the consumption of nations such as the Netherlands, Argentina and Sweden, according to a semiconductor analyst. Analysts believe that if NVIDIA prefers such power-hungry GPUs in the future, lower-powered alternatives will eventually gain traction, possibly overtaking NVIDIA, which will give the company its There are alarm bells regarding established monopolies.

Image credit: Dominion Energy via Bloomberg Greene

In previous coverage, we revealed how rumored NVIDIA's current AI accelerator is Consumes up to 13,000 GWh of electricity. annually, and this number is expected to grow significantly in the future, especially with the debut of Blackwell GPUs rated over 1000W (for certain configurations).

There have also been discussions about nuclear powered data centers. A project developed by Microsoft and OpenAI is mentioned.but that's years away, and it will be a “must” for NVIDIA to reach a temporary solution if they continue at this pace.

There are many other reasons why NVIDIA's monopoly will not exist in the future, such as increasing competition, companies involved in the supply chain being inactive, and many more, but the huge consumption of electricity makes it impossible for the company to sustain itself. will stop For a long time, given that they don't work on solutions.

News Source: Chosen Buzz

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