---
title: A very interesting article by the FT >>>
description: "Key takeaways: \n➡️ 1. Jensen Huang’s Warning Isn’t Just Self-Interest\nAlthough Nvidia benefits from greater global AI investment, Huang’s claim that China may win the AI race has substantive grounding. The argument isn’t only about chips—it’s increasingly about energy.\n\n➡️ 2. AI Progress Is Becoming Limited by Electricity, Not Chips\nTraining frontier models consumes massive electricity.\nA single GPT-4–scale model can use ~463,000 MWh/year — more than 35,000 U.S. homes.\nAs AI workloads expand, data centre electricity consumption could more than double by 2030.\nBy 2040, data centres may consume 1,800 TWh annually, enough to power 150 million U.S. homes.\nConclusion: The bottleneck is shifting from access to high-end chips to access to cheap, abundant power.\n\n➡️ 3. China Has a Structural Energy Advantage\nChina is rapidly expanding renewable energy capacity:\nAdded 356 GW of new renewable energy last year (solar + wind).\nSolar alone grew 277 GW, far exceeding additions in the U.S.\nMassive government-backed projects linking industrial policy and grid expansion:\nSolar in Inner Mongolia\nHydropower in Sichuan\nHigh-voltage lines to coastal tech hubs\nLocal governments also subsidize electricity for Chinese tech giants (Alibaba, Tencent, ByteDance), lowering the effective cost of AI training, even with less advanced chips like Huawei’s Ascend 910B.\n\n➡️ 4. The U.S. Faces Growing Power Constraints\nU.S. wholesale electricity prices near data-centre clusters are up as much as 267% over five years.\nInvestment in large wind and solar projects is declining due to policy and regulatory uncertainty.\nThe White House has ended subsidies for wind and solar, slowing capacity growth.\nOutcome: The U.S. is adding compute demand faster than energy supply.\n\n➡️ 5. Chip Superiority Alone May Not Decide the Winner\nNvidia’s H100 and Blackwell chips still outperform Chinese alternatives.\nBut the historical “chip supremacy” model may matter less as:\nChip performance grows only single digits yearly.\nChina’s energy capacity grows double digits yearly.\nMore cheap power → more compute hours → more model training → faster innovation.\n\n➡️ 6. AI Dominance Will Belong to Those With Cheap Energy\nThe article frames AI as part of a much older pattern:\nBritain dominated through cheap coal.\nThe U.S. dominated through oil and hydroelectric power.\nNow, AI dominance will go to those who can run the most computation, not just build the best chips.\n\n‼️ Final takeaway:\nThe future of AI power belongs to countries that can provide abundant, inexpensive electricity — and right now, China is building that capacity faster than anyone else"
---

[Syz The Moment](https://blog.syzgroup.com/syz-the-moment)

# [A very interesting article by the FT \>\>\>](https://blog.syzgroup.com/syz-the-moment/a-very-interesting-article-by-the-ft)

 Written by [Charles-Henry Monchau, CFA, CMT, CAIA](https://blog.syzgroup.com/syz-the-moment/author/charles-henry-monchau) | Nov 13, 2025, 4:02:08 PM

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