🕶️ AI's electricity drain: a growing concern

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Paula Echeverria & Arturo Pardo
July 13, 2024

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How’s your energy this weekend? Today, we discuss AI’s growing energy demands. Microsoft and OpenAI plan a $100 billion data center that may require five gigawatts of power—equivalent to five nuclear reactors. 🤯

On the other hand, as the startup ecosystem has become more sophisticated, it is now starting to disrupt some tightly controlled sectors, which were until recently the domain of governments and legacy institutions. 📄

We’re also following the question: Is the climate tech funding gap real? The problem might not be a lack of capital, but rather the caliber of the companies pursuing it. 

Stay tuned for more and have a great weekend!

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Six bullets of updates

  1. 📃 New bill aims to streamline the immigration visa process, targeting startup founders and STEM professionals.

  2. 🛴 E-scooter startup Voi cuts losses by a third and focuses on fleet expansion.

  3. 🚧 Intel Capital backs AI construction startup that may enhance Intel's manufacturing, aiming for industry growth.

  4. 🇫🇷 Air taxis by Volocopter approved for Paris Olympics, with plans for 900 flights and Macron as first passenger.

  5. 🌧️ Is climate tech funding gap a myth? Perhaps the issue lies not in the availability of capital but in the quality of the companies seeking it.

  6. 🇪🇺 CVC is thriving as it participates in one in four European startup deals, accounting for over a quarter of startup funding.

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The high cost of AI: concerns over electricity consumption

NYTimes

A.I. data centers have an insatiable appetite for electricity, especially the graphic processing units (G.P.U.s) used to train large language models and handle queries like ChatGPTs. These G.P.U.s consume significantly more energy than standard microchips and generate substantial heat, increasing energy demands for cooling and operation.

With the rapid proliferation of data centers, projections of the energy needed to sustain the A.I. boom are skyrocketing. Each new data center coming online contributes to a growing concern about the sustainability of this expansion.

A peer-reviewed study estimates that AI could account for 0.5 percent of global electricity use by 2027, comparable to Argentina's annual consumption. Analysts at Wells Fargo suggest that U.S. electricity demand might surge by 20 percent by 2030, mainly due to the escalating power needs of A.I. technology.

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Startup Events and Deadlines

  1. Crash Course in Financial Modeling | July 16 | Webinar

  2. Financial Modeling Bootcamp | July 22 | Bootcamp

  3. How to close a Funding Round | July 24 | Webinar

  4. SaaStock: Dublin | August 14 | Conference

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These companies just raised money

  1. 🪖 Military AI startup Helsing raises €450M at €5B valuation to bolster NATO's Eastern Flank defenses.

  2. 🏔️ Alpine Space Ventures closes $184M first fund to boost space economy across the Atlantic.

  3. 🏥 AI-driven Regard secures $61M to diagnose missed illnesses, boosting hospitals' revenue and care efficiency.

  4. 🇺🇿 Uzbekistan mobile bank TBC secures $38.2M to expand its financial products and services suite.

  5. 🎞️ Beeble AI raises $4.75M to launch a virtual production platform for indie filmmakers, revolutionizing the industry with innovative AI tools.

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Navigating ethical minefields in tech

Ethical considerations become paramount as tech startups venture into national security and space exploration sectors. NATO's recent €1B Innovation Fund investments underscore the shift towards private companies driving advancements in military and defense technologies.

Startups will become crucial in giving nations a competitive advantage in rapidly evolving areas, such as space, cutting-edge technologies for military purposes, or consumer-grade satellite Internet.

Founders must anticipate ethical dilemmas and distribute decision-making power to avoid pitfalls. Implementing decentralized leadership structures and maintaining a future-facing charter can guide ethical governance. Adaptability and interdisciplinary knowledge are crucial for navigating these uncharted territories. Read more!

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Strategies for successfully launching a startup from scratch

Why not consider how you would start your start-up if you could do it again? In this video, Slidebean’s CEO shares his thoughts on what he would have done differently if he had had the chance to start over. Join him with his insights, reflections, and lessons learned. More from Slidebean here.