AI Could Force a Blue State Exodus for Years

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The discussion highlights the increasing demand for electricity due to AI, predicting it could match Japan’s current consumption in five years. It addresses the migration of people to high-demand areas and the unprecedented physical limitations facing new technologies like AI, specifically related to power production and the electrical grid. The rapid growth of AI, compared to the slower development of past technologies, is also noted.


And you’re also having a migration of people out of blue states to areas that already have grown and have more demand, and that demand is going to increase.

Yeah, it will increase. Now, if you think about how this is going to grow, I saw a statistic that said in roughly five years, AI electricity consumption will be the same as it is for the entire country of Japan.

Which is staggering to think of, but I think that’s absolutely on line with what we’re going to see, because making those chips and just the capacity that’s needed for all that, it’s going to continue to skyrocket.

I don’t know if you and I have seen, certainly any time in the last few decades, a situation where you have a brand new technology. It’s very powerful. It’s very important.

And now you’re talking about a set of limits on that technology, which are sort of physical limits. This is software. It’s going to be driven by actual physical limits of things like power production and grid.

Yeah. And, you know, two and three decades ago, it took Amazon years to get off the ground. And as we discussed in other conversations, different products, it took Apple years.

And the AI basically, it’ll be two years this fall that the ChatGPT broke, and that Microsoft had made a big investment. It’s been two years. That’s nothing in the big picture.

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