Perhaps the only hope for the US economy, and indirectly for the global economy, to enter into a new paradigm were there’s growth without inflation, and we can scape the high levels of debt is #ai. But Artificial intelligence is very demanding in terms of energy consumption, since it needs vast amounts of data to train the networks, and a lot of power to “learn”’from it. According to the chart below, the US electricity consumption will triple by 2030 (everything will happen by 2030). This doesn’t account for electrical cars, which will also contribute to the overall energy utilization. In other words, It turns out, AI will be inflationary. How much? In terms of CPI, electricity has a 2.42% weight on the Index, which is manageable, but in order to remain that way, huge investment will be needed in terms of infrastructure to be able to cope with the overall need, otherwise, the grid will collapse. In terms of energy source, nuclear is probably the only practical solution, and a complete revamp of the grid will be needed as well, which most likely will be funded by debt.
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