By Lyle Pentith, Portfolio Manager
Last week, I had the privilege of attending an exclusive event with OpenAI's founder, Sam Altman at Harvard University, hosted by our partners at Xfund.
Beyond talk of Barbie vs Oppenheimer, discussions mostly revolved around Mr Altman’s views on AI and its profound and unavoidable implications for humanity. Perhaps what stood out most for me was Altman’s firm belief that, ultimately, the price of computational power would come to match the price of energy directly.
Altman discussed a need to focus our efforts on advancements in sustainable energy generation alongside the growth of AI. As indispensable pillars of technological advancement and environmental sustainability in today's world, the symbiotic relationship between AI and renewable energy cannot be overstated.
Altman showed enthusiasm for fusion and solar-plus-storage technologies, championing their potential to revolutionise our energy landscape. He also talked to fusion energy as one notable solution to the AI energy problem, an area in which Future Planet Capital has a stake as a founding investor in the Oxford spinout Tokamak Energy.
Nuclear fusion, which powers the sun and stars, promises to provide limitless, clean energy for humanity. However, achieving the pinnacle of fusion energy production – ignition – remains a significant challenge. Ignition occurs when enough fusion reactions take place to become self-sustaining, producing more energy than is required to initiate the reaction. This milestone is crucial for making fusion energy economically viable and capable of providing infinite energy.
The hurdles to achieving ignition include controlling and sustaining the extremely high temperatures and pressures required for fusion reactions. This is where AI plays a crucial role. Complex simulations and experiments are conducted to better understand the behaviour of plasma, the superheated gas where fusion reactions occur, produced in fusion reactors like those developed by Tokamak Energy and its US competitors. These simulations involve vast amounts of data and require precise control over various parameters to optimise reactor performance.
AI algorithms are being used to automate and optimise these simulations, allowing researchers to explore a wider range of scenarios and identify the most promising approaches to achieving ignition. Machine learning techniques can analyse large datasets generated from experiments and simulations to identify patterns and insights that may not be apparent to traditional researchers.
However, the immediate environmental impact of AI's energy consumption cannot be ignored. While AI offers unprecedented opportunities for innovation, it also comes with significant energy demands, which have been the topic of much negative news flow. As AI models become larger and more complex, their energy consumption is poised to contribute significantly to global carbon emissions.
Yet, as Altman pointed out, the cost of compute will be dictated by the cost of energy. The dual success of AI and renewable energy is critical to addressing some of humanity's most pressing challenges. As we have seen, AI is revolutionising how we generate, distribute, and manage renewable energy, while renewable energy sources provide the sustainable power needed to support the growth of AI technologies.
By leveraging AI, renewable energy technologies become more efficient, reliable, and accessible. AI-driven optimisation algorithms can enhance the performance of solar panels, wind turbines, and energy storage systems, maximising their energy output and minimising waste. Additionally, AI-powered predictive analytics enable better forecasting of energy demand and generation, improving grid stability and enabling more effective integration of renewable energy into the power grid.
In contrast, renewable energy is essential for supporting the energy-intensive nature of AI. As AI models become larger and more complex, the demand for computational power increases. By powering AI infrastructure with renewable energy sources, we can mitigate the environmental impact of AI's energy consumption and move towards a more sustainable future.
Ultimately, the success of AI and renewable energy is intertwined. As we advance in both fields, we unlock new opportunities for sustainable development, economic growth, and combating climate change. This relationship offers a pathway to a future where clean, abundant energy is driven by and fuels innovation through Artificial Intelligence.
We at Future Planet Capital are committed to supporting innovation across both spaces.