{"id":89157,"date":"2025-01-31T00:00:00","date_gmt":"2025-01-31T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/climate\/2025\/01\/31\/chinas-ai-alternative-torpedoes-us-power-market\/"},"modified":"2025-01-31T00:00:00","modified_gmt":"2025-01-31T00:00:00","slug":"chinas-ai-alternative-torpedoes-us-power-market","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/climate\/2025\/01\/31\/chinas-ai-alternative-torpedoes-us-power-market\/","title":{"rendered":"China\u2019s AI alternative torpedoes US power market"},"content":{"rendered":"

DeepSeek\u2019s energy-efficient AI sends energy market reeling:<\/strong> The US power market saw a record one-day drop after China\u2019s DeepSeek launched its rules-bending, energy-efficient open-source AI model, potentially changing the trajectory of worldwide energy demand, Reuters<\/a> reported Monday.<\/p>\n

The better alternative:<\/strong> The Chinese startup claimed DeepSeek V-3 is \u201ccomparable\u201d to closed-source AI models like OpenAI\u2019s GPT-4o, yet cost some USD 5.6 mn, the firm said in a technical report<\/a>. It also only used about 2k Nvidia chips for its model, making its model much more energy-efficient in comparison to those developed by leading Western tech players, which use as many as 16k chips to train their software, The New York Times<\/a> reported Monday. <\/p>\n

Future energy demand modelling could require a revamp: <\/strong>DeepSeek\u2019s rise \u201ccalls into question the significant electric demand projections for the US,\u201d with AI accounting for 75% of US energy demand forecast through 2035, Jeffries analysts told Bloomberg<\/a> on Tuesday. DeepSeek\u2019s offering may consume as little as 10% of the electricity used by leading AI models, which deflated the share values of several energy players whose shares have recently rallies on the back of an AI-powered projected demand boom, including nuclear energy, uranium producers and natural gas pipeline operators, Bloomberg<\/a> reported separately on Wednesday. For example, the US energy provider stronghouse Constellation Energy \u2014 whose shares jumped about 100% in 2024 over rising demand on its nuclear energy from US data centers \u2014 saw its share price drop by 20%, Reuters<\/a> reported on Monday. <\/p>\n

AI is not exactly climate-friendly: <\/strong>Google\u2019s greenhouse gas emissions rose 48%<\/a> within the past five years thanks, in part, to its data centres integrating AI services. Microsoft reported a 30% increase in emissions for the same reason. <\/p>\n

That\u2019s why tech players are pursuing <\/strong>nuclear <\/strong>energy: <\/strong>Microsoft opted to go nuclear, inking a 20-year power supply agreement<\/a> with Constellation Energy, to sustain its AI services. Tech giant Meta is also seeking to power its AI offerings with 4 GW of nuclear energy<\/a> as early as the 2030s. <\/p>\n","protected":false},"excerpt":{"rendered":"

Leading tech players can use as many as 16k chips to train their software, but DeepSeek used only about 2k Nvidia chips<\/p>\n","protected":false},"author":1,"featured_media":89158,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[157],"tags":[325,69,156,155,11,210],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-89157","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-climate-in-the-news","tag-ai","tag-china","tag-climate-in-the-news","tag-emissions","tag-enterpriseclimate","tag-usa","wpautop","entry"],"acf":{"mongo_id":"b7fc7782-301f-4c34-92bf-93106a70701d","order":"12","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2025\/1\/2287.jpg","photo_position":"above","homepage_title":"","full_issue_title":"China\u2019s AI alternative torpedoes US power market","related_issue":[89134],"teaser":"Leading tech players can use as many as 16k chips to train their software, but DeepSeek used only about 2k Nvidia chips","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2025\/1\/.531c9f1d-393f-4246-846a-d64f20341072.mp3"},"yoast_head":"\nChina\u2019s AI alternative torpedoes US power market - 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