September 22, 2024

Not all data processing energy is equal. The case of Bitcoin vs. AI

Datacenters, data processing and AI need a huge amount of energy. Some days processing energy makes sense. Not all data processing energy  makes sense.


Energy in itself is not an issue. We consume huge amounts of energy for a lot of things. For cars, phones, food, highways and bridges. Because that energy produces value. 


So, the question is not (only) about the energy needed by datacenters, or by AI, or Bitcoin. The question is if that energy creates enough value. 


The AI is already producing value. There's a debate about the current hype and maybe some over-promising, but we already have clear practical applications of AI: for translation, spelling, speech recognition, text to speech and speech to text, image analysis and so many others. At Hermix, we use AI for tender summarization and analysis, used by hundreds of bid professionals.


On the other hand, Bitcoin produces simply nothing.


Microsoft is restarting a closed nuclear plant for a future data center.

Amazon will build a new data center powered by 3 SMRs.




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