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on wednesday, Nvidia Inc. (NASDAQ:NVDA) CEO jensen fan said Joe Rogan The future of artificial intelligence will be constrained by electricity, not chips, he said, predicting tech giants will start powering data centers with their own nuclear reactors.
In an episode of “The Joe Rogan Experience,” Huang said the rapid expansion of AI is putting us squarely in the face of new kinds of limits: power.
When Logan asked if energy was the biggest hurdle for AI, Huang didn't hesitate. “That's the bottleneck,” he said, emphasizing that power availability, not GPU availability, determines how far and fast the industry can scale.
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Logan pushed further and said: Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) google is already building nuclear facilities to run AI operations.
Huang said he has not heard of any such specific developments, but he foresees a future where small nuclear reactors become commonplace. “I think within the next six or seven years we're going to see a lot of small nuclear reactors being built,” he said.
Mr. Huang told Mr. Logan that the reactor he envisioned was not a traditional large-scale plant, but a compact system that would produce “several hundred megawatts.”
He said they would be located closer to businesses that need them, allowing tech companies to generate electricity on-site rather than relying solely on the grid.
“We all become generators,” Huang said, likening it to a farm producing its own resources. He added that locally generated nuclear power can also reduce strain on the grid, provide reliable supply and return surplus power to surrounding communities.
Logan called this strategy “the smartest thing to do,” and Huang agreed, saying that as AI workloads continue to proliferate, it's imperative that companies build the capabilities they need and contribute where possible.
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Huang's predictions are in line with trends that are already taking shape. In 2024, Google announced plans to buy power from developers of small modular nuclear reactors. kairos powerThe goal is to have the first new type of reactor by 2030.
The 2025 agreement between Kairos and the Tennessee Valley Authority marked the first time a U.S. utility has committed to purchasing power from next-generation nuclear reactors.
Analysts predict that data center power usage will jump 175% by 2030. goldman sachs compares it to adding the top 10 new energy-consuming countries to the world's power grid.
For Huang, the lesson is clear. The next frontier in AI will not be defined solely by hardware breakthroughs. It is defined by who can generate enough power to keep the machine running.
U.S. electricity demand is projected to grow 2.6% annually through 2030, an increase of 1.2 percentage points, driven primarily by data centers. This level of growth is remarkable, as the country's electricity demand has rarely increased by more than 2% over the past two decades.
Following are the after-hours trading movements and year-to-date performance of major energy and nuclear stocks.
|
Company name (ticker)
|
Overtime charges
|
Overtime rate of change
|
Rate of change from the beginning of the year (%)
|
|
GE Vernova (NYSE:GEV)
|
$604.00
|
+0.34%
|
+77.60%
|
|
Vistra Inc. (NYSE:VST)
|
$171.93
|
+0.16%
|
+14.69%
|
|
Constellation Energy (NASDAQ:CEG)
|
$362.20
|
+0.26%
|
+48.91%
|
|
Fluence Energy (NASDAQ:FLNC)
|
$19.69
|
−0.81%
|
+17.39%
|
|
Jabiru Circuit Co., Ltd. (NYSE:JBL)
|
$214.50
|
+0.21%
|
+49.86%
|
|
First Solar Co., Ltd. (NASDAQ:FSLR)
|
$254.17
|
−0.74%
|
+37.32%
|
|
Energy Fuels Inc. (NASDAQ:UUUU)
|
$15.15
|
+0.34%
|
+165.85%
|
|
Uranium Energy Corporation (NYSE:UEC)
|
$12.98
|
+0.23%
|
+69.95%
|
Photo credit: jamesonwu1972 (via Shutterstock)
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This article: Jensen Huang reveals AI's biggest problem: It's not a chip problem — Joe Rogan agrees it's the 'smartest' way to solve it
