In aviation, most people know that a huge portion of the costs in that industry come from paying for fuel. Recent projections are that it will account for more than 30% of the overall expenses for most airlines. When it comes to AI startups, investors and industry watchers are starting to get a similar picture of just how big of an impact the energy costs are likely to have on that growing sector.
An article from the MIT Tech Review suggested that using AI to generate just one image uses as much power as charging your phone. The harsh financial reality of these surging expenses are already driving some AI startups out of business and likely many more in the coming months.
Assuming this continues in the same direction as aviation, the new reality for AI startups will be huge barriers to entry that prevent new startups from being able to effectively compete or scale … which leaves the future of AI to just a few big players like Microsoft, Google and Meta/Facebook.
Luckily, there are many scientists working on a “recipe book” to make AI less power hungry. The future of AI startups may depend on their success.
