{"id":521887,"date":"2026-09-03T07:35:55","date_gmt":"2026-09-03T14:35:55","guid":{"rendered":"https:\/\/jorgep.com\/blog\/?p=521887"},"modified":"2026-09-06T14:05:52","modified_gmt":"2026-09-06T21:05:52","slug":"the-economics-of-gigawatts-blew-mind-blowing","status":"publish","type":"post","link":"https:\/\/jorgep.com\/blog\/the-economics-of-gigawatts-blew-mind-blowing\/","title":{"rendered":"The Economics of Gigawatts: Blew Mind-Blowing!"},"content":{"rendered":"\n<div class=\"wp-block-columns has-theme-palette-7-background-color has-background is-layout-flex wp-container-core-columns-is-layout-5dc627e1 wp-block-columns-is-layout-flex\" style=\"margin-top:0;margin-bottom:0\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:80%\">\n<p class=\"wp-block-paragraph\">Part of: <strong> <a href=\"https:\/\/jorgep.com\/blog\/series-ai-learnings\/\">AI Learning Series Here<\/a><\/strong><\/p>\n\n\n<style>.kadence-column395113_e6e0a6-a4 > .kt-inside-inner-col,.kadence-column395113_e6e0a6-a4 > .kt-inside-inner-col:before{border-top-left-radius:0px;border-top-right-radius:0px;border-bottom-right-radius:0px;border-bottom-left-radius:0px;}.kadence-column395113_e6e0a6-a4 > .kt-inside-inner-col{column-gap:var(--global-kb-gap-sm, 1rem);}.kadence-column395113_e6e0a6-a4 > .kt-inside-inner-col{flex-direction:column;}.kadence-column395113_e6e0a6-a4 > .kt-inside-inner-col > .aligncenter{width:100%;}.kadence-column395113_e6e0a6-a4 > .kt-inside-inner-col:before{opacity:0.3;}.kadence-column395113_e6e0a6-a4{position:relative;}@media all and (max-width: 1024px){.kadence-column395113_e6e0a6-a4 > .kt-inside-inner-col{flex-direction:column;justify-content:center;}}@media all and (max-width: 767px){.kadence-column395113_e6e0a6-a4 > .kt-inside-inner-col{flex-direction:column;justify-content:center;}}<\/style>\n<div class=\"wp-block-kadence-column kadence-column395113_e6e0a6-a4\"><div class=\"kt-inside-inner-col\"><style>.kadence-column510545_f73041-db > .kt-inside-inner-col{padding-top:var(--global-kb-spacing-xs, 1rem);padding-bottom:var(--global-kb-spacing-xs, 1rem);}.kadence-column510545_f73041-db > .kt-inside-inner-col,.kadence-column510545_f73041-db > .kt-inside-inner-col:before{border-top-left-radius:0px;border-top-right-radius:0px;border-bottom-right-radius:0px;border-bottom-left-radius:0px;}.kadence-column510545_f73041-db > .kt-inside-inner-col{column-gap:var(--global-kb-gap-sm, 1rem);}.kadence-column510545_f73041-db > .kt-inside-inner-col{flex-direction:column;}.kadence-column510545_f73041-db > .kt-inside-inner-col > .aligncenter{width:100%;}.kadence-column510545_f73041-db > .kt-inside-inner-col{background-color:var(--global-palette7, #EDF2F7);}.kadence-column510545_f73041-db:hover > .kt-inside-inner-col{background-color:var(--global-palette8, #F7FAFC);background-image:none;}.kadence-column510545_f73041-db > .kt-inside-inner-col:before{opacity:0.3;}.kadence-column510545_f73041-db{position:relative;}@media all and (max-width: 1024px){.kadence-column510545_f73041-db > .kt-inside-inner-col{flex-direction:column;justify-content:center;}}@media all and (max-width: 767px){.kadence-column510545_f73041-db > .kt-inside-inner-col{flex-direction:column;justify-content:center;}}<\/style>\n<div class=\"wp-block-kadence-column kadence-column510545_f73041-db\"><div class=\"kt-inside-inner-col\"><style>.wp-block-kadence-advancedheading.kt-adv-heading510545_c22cc7-a4, .wp-block-kadence-advancedheading.kt-adv-heading510545_c22cc7-a4[data-kb-block=\"kb-adv-heading510545_c22cc7-a4\"]{text-align:center;font-size:var(--global-kb-font-size-sm, 0.9rem);font-style:normal;}.wp-block-kadence-advancedheading.kt-adv-heading510545_c22cc7-a4 mark.kt-highlight, .wp-block-kadence-advancedheading.kt-adv-heading510545_c22cc7-a4[data-kb-block=\"kb-adv-heading510545_c22cc7-a4\"] mark.kt-highlight{font-style:normal;color:#f76a0c;-webkit-box-decoration-break:clone;box-decoration-break:clone;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;}.wp-block-kadence-advancedheading.kt-adv-heading510545_c22cc7-a4 img.kb-inline-image, .wp-block-kadence-advancedheading.kt-adv-heading510545_c22cc7-a4[data-kb-block=\"kb-adv-heading510545_c22cc7-a4\"] img.kb-inline-image{width:150px;vertical-align:baseline;}<\/style>\n<p class=\"kt-adv-heading510545_c22cc7-a4 wp-block-kadence-advancedheading\" data-kb-block=\"kb-adv-heading510545_c22cc7-a4\">Quick Links:&nbsp;<a href=\"https:\/\/jorgep.com\/blog\/resources-for-learning-ai\/\">Resources for Learning AI<\/a> | <a href=\"https:\/\/jorgep.com\/blog\/keeping-up-with-ai\/\">Keep up with AI<\/a> | <a href=\"https:\/\/jorgep.com\/blog\/list-of-ai-tools\/\" data-type=\"post\" data-id=\"402818\">List of AI Tools<\/a> | <a href=\"https:\/\/jorgep.com\/blog\/local-ai-series\/\" data-type=\"page\" data-id=\"519365\">Local AI<\/a> | <a href=\"https:\/\/jorgep.com\/blog\/tag\/ai-agents\/\" data-type=\"post_tag\" data-id=\"941\">AI Agents<\/a> |  <a href=\"https:\/\/jorgep.com\/blog\/work-beyond-tomorrow-series\/\" data-type=\"page\" data-id=\"365001\">Future of Work<\/a><\/p>\n<\/div><\/div>\n<\/div><\/div>\n\n\n<style>.kb-row-layout-id395113_97845d-28 > .kt-row-column-wrap{align-content:start;}:where(.kb-row-layout-id395113_97845d-28 > .kt-row-column-wrap) > .wp-block-kadence-column{justify-content:start;}.kb-row-layout-id395113_97845d-28 > .kt-row-column-wrap{column-gap:var(--global-kb-gap-md, 2rem);row-gap:var(--global-kb-gap-none, 0rem );padding-top:var(--global-kb-spacing-xxs, 0.5rem);padding-bottom:var(--global-kb-spacing-xxs, 0.5rem);grid-template-columns:repeat(2, minmax(0, 1fr));}.kb-row-layout-id395113_97845d-28 > .kt-row-layout-overlay{opacity:0.30;}@media all and (max-width: 1024px){.kb-row-layout-id395113_97845d-28 > .kt-row-column-wrap{grid-template-columns:repeat(2, minmax(0, 1fr));}}@media all and (max-width: 767px){.kb-row-layout-id395113_97845d-28 > .kt-row-column-wrap{grid-template-columns:minmax(0, 1fr);}}<\/style><div class=\"kb-row-layout-wrap kb-row-layout-id395113_97845d-28 alignnone wp-block-kadence-rowlayout\"><div class=\"kt-row-column-wrap kt-has-2-columns kt-row-layout-equal kt-tab-layout-inherit kt-mobile-layout-row kt-row-valign-top\">\n<style>.kadence-column395113_fb3852-97 > .kt-inside-inner-col,.kadence-column395113_fb3852-97 > .kt-inside-inner-col:before{border-top-left-radius:0px;border-top-right-radius:0px;border-bottom-right-radius:0px;border-bottom-left-radius:0px;}.kadence-column395113_fb3852-97 > .kt-inside-inner-col{column-gap:var(--global-kb-gap-sm, 1rem);}.kadence-column395113_fb3852-97 > .kt-inside-inner-col{flex-direction:column;}.kadence-column395113_fb3852-97 > .kt-inside-inner-col > .aligncenter{width:100%;}.kadence-column395113_fb3852-97 > .kt-inside-inner-col:before{opacity:0.3;}.kadence-column395113_fb3852-97{position:relative;}@media all and (max-width: 1024px){.kadence-column395113_fb3852-97 > .kt-inside-inner-col{flex-direction:column;justify-content:center;}}@media all and (max-width: 767px){.kadence-column395113_fb3852-97 > .kt-inside-inner-col{flex-direction:column;justify-content:center;}}<\/style>\n<div class=\"wp-block-kadence-column kadence-column395113_fb3852-97\"><div class=\"kt-inside-inner-col\"><style>.wp-block-kadence-advancedheading.kt-adv-heading395113_0b34c1-ff, .wp-block-kadence-advancedheading.kt-adv-heading395113_0b34c1-ff[data-kb-block=\"kb-adv-heading395113_0b34c1-ff\"]{text-align:center;font-size:var(--global-kb-font-size-sm, 0.9rem);line-height:60px;font-style:normal;background-color:#f5a511;}.wp-block-kadence-advancedheading.kt-adv-heading395113_0b34c1-ff mark.kt-highlight, .wp-block-kadence-advancedheading.kt-adv-heading395113_0b34c1-ff[data-kb-block=\"kb-adv-heading395113_0b34c1-ff\"] mark.kt-highlight{font-style:normal;color:#f76a0c;-webkit-box-decoration-break:clone;box-decoration-break:clone;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;}.wp-block-kadence-advancedheading.kt-adv-heading395113_0b34c1-ff img.kb-inline-image, .wp-block-kadence-advancedheading.kt-adv-heading395113_0b34c1-ff[data-kb-block=\"kb-adv-heading395113_0b34c1-ff\"] img.kb-inline-image{width:150px;vertical-align:baseline;}<\/style>\n<p class=\"kt-adv-heading395113_0b34c1-ff wp-block-kadence-advancedheading\" data-kb-block=\"kb-adv-heading395113_0b34c1-ff\">Subscribe to <a href=\"https:\/\/go.35s.be\/jtb\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>JorgeTechBits  newsletter<\/strong><\/a><\/p>\n<\/div><\/div>\n\n\n<style>.kadence-column395113_1641f9-51 > .kt-inside-inner-col,.kadence-column395113_1641f9-51 > .kt-inside-inner-col:before{border-top-left-radius:0px;border-top-right-radius:0px;border-bottom-right-radius:0px;border-bottom-left-radius:0px;}.kadence-column395113_1641f9-51 > .kt-inside-inner-col{column-gap:var(--global-kb-gap-sm, 1rem);}.kadence-column395113_1641f9-51 > .kt-inside-inner-col{flex-direction:column;}.kadence-column395113_1641f9-51 > .kt-inside-inner-col > .aligncenter{width:100%;}.kadence-column395113_1641f9-51 > .kt-inside-inner-col:before{opacity:0.3;}.kadence-column395113_1641f9-51{position:relative;}@media all and (max-width: 1024px){.kadence-column395113_1641f9-51 > .kt-inside-inner-col{flex-direction:column;justify-content:center;}}@media all and (max-width: 767px){.kadence-column395113_1641f9-51 > .kt-inside-inner-col{flex-direction:column;justify-content:center;}}<\/style>\n<div class=\"wp-block-kadence-column kadence-column395113_1641f9-51\"><div class=\"kt-inside-inner-col\"><style>.wp-block-kadence-advancedheading.kt-adv-heading395113_63dab8-35, .wp-block-kadence-advancedheading.kt-adv-heading395113_63dab8-35[data-kb-block=\"kb-adv-heading395113_63dab8-35\"]{text-align:center;font-size:var(--global-kb-font-size-sm, 0.9rem);font-style:normal;}.wp-block-kadence-advancedheading.kt-adv-heading395113_63dab8-35 mark.kt-highlight, .wp-block-kadence-advancedheading.kt-adv-heading395113_63dab8-35[data-kb-block=\"kb-adv-heading395113_63dab8-35\"] mark.kt-highlight{font-style:normal;color:#f76a0c;-webkit-box-decoration-break:clone;box-decoration-break:clone;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;}.wp-block-kadence-advancedheading.kt-adv-heading395113_63dab8-35 img.kb-inline-image, .wp-block-kadence-advancedheading.kt-adv-heading395113_63dab8-35[data-kb-block=\"kb-adv-heading395113_63dab8-35\"] img.kb-inline-image{width:150px;vertical-align:baseline;}<\/style>\n<p class=\"kt-adv-heading395113_63dab8-35 wp-block-kadence-advancedheading\" data-kb-block=\"kb-adv-heading395113_63dab8-35\">Explore the <a href=\"https:\/\/jorgep.com\/blog\/latest-token-prices\/\" data-type=\"page\" data-id=\"521255\">Latest Token Prices<\/a><\/p>\n<\/div><\/div>\n\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-column is-vertically-aligned-top is-layout-flow wp-block-column-is-layout-flow\"><div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large is-resized\"><a href=\"htthttps:\/\/jorgep.com\/blog\/book-dont-just-chat-delegate\/\"><img loading=\"lazy\" decoding=\"async\" width=\"640\" height=\"1024\" src=\"https:\/\/jorgep.com\/blog\/wp-content\/uploads\/CoverBook-01-640x1024.jpg\" alt=\"\" class=\"wp-image-520234\" style=\"aspect-ratio:0.6250142320391666;width:98px;height:auto\" srcset=\"https:\/\/jorgep.com\/blog\/wp-content\/uploads\/CoverBook-01-640x1024.jpg 640w, https:\/\/jorgep.com\/blog\/wp-content\/uploads\/CoverBook-01-188x300.jpg 188w, https:\/\/jorgep.com\/blog\/wp-content\/uploads\/CoverBook-01-768x1229.jpg 768w, https:\/\/jorgep.com\/blog\/wp-content\/uploads\/CoverBook-01-960x1536.jpg 960w, https:\/\/jorgep.com\/blog\/wp-content\/uploads\/CoverBook-01-1280x2048.jpg 1280w, https:\/\/jorgep.com\/blog\/wp-content\/uploads\/CoverBook-01.jpg 1600w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/a><figcaption class=\"wp-element-caption\"><a href=\"https:\/\/jorgep.com\/blog\/book-series-ai-dont-just-chat\/\" data-type=\"page\" data-id=\"520242\">Check out the Book Series<\/a><\/figcaption><\/figure>\n<\/div><\/div>\n<\/div>\n\n\n<style>.wp-block-kadence-advancedheading.kt-adv-heading519190_b33a00-c9, .wp-block-kadence-advancedheading.kt-adv-heading519190_b33a00-c9[data-kb-block=\"kb-adv-heading519190_b33a00-c9\"]{font-size:var(--global-kb-font-size-sm, 0.9rem);font-style:normal;}.wp-block-kadence-advancedheading.kt-adv-heading519190_b33a00-c9 mark.kt-highlight, .wp-block-kadence-advancedheading.kt-adv-heading519190_b33a00-c9[data-kb-block=\"kb-adv-heading519190_b33a00-c9\"] mark.kt-highlight{font-style:normal;color:#f76a0c;-webkit-box-decoration-break:clone;box-decoration-break:clone;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;}.wp-block-kadence-advancedheading.kt-adv-heading519190_b33a00-c9 img.kb-inline-image, .wp-block-kadence-advancedheading.kt-adv-heading519190_b33a00-c9[data-kb-block=\"kb-adv-heading519190_b33a00-c9\"] img.kb-inline-image{width:150px;vertical-align:baseline;}<\/style>\n<p class=\"kt-adv-heading519190_b33a00-c9 wp-block-kadence-advancedheading\" data-kb-block=\"kb-adv-heading519190_b33a00-c9\"><strong>Disclaimer:<\/strong> <strong>I create this content entirely on my own time, and the views expressed here are mine alone (not my employer&#8217;s)<\/strong>. Because I love leveraging new tech, I use AI tools like Gemini, NotebookLM, Claude, Perplexity and others as a &#8220;digital team&#8221; to help research and polish these articles so I can share the best possible insights with you!<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Every once in a while, I come across a discussion that makes me step back and rethink the bigger picture. This conversation between Dwarkesh Patel and SemiAnalysis founder Dylan Patel is one of those.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<h2 class=\"wp-block-heading\">Mind-blowing!<\/h2>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">Dylan\u2019s central argument is that AI companies capable of earning more from their computing capacity can afford to bid more for additional capacity. He forecasts that OpenAI and Anthropic could control most of the world\u2019s usable compute by the end of 2028 if current trends continue. That includes infrastructure serving their models through other providers, rather than just equipment they own. It is an aggressive forecast, not an established outcome. <a href=\"https:\/\/www.dwarkesh.com\/p\/dylan-patel-3\">Watch the discussion and read the transcript.<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">What caught my attention was the way this connects electricity to the economics of useful work.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We experience AI through a chat window, a coding assistant, or an automated workflow. Thinking about the gigawatts behind those experiences adds an entirely different perspective.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>First, how big is a gigawatt?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">One gigawatt equals <strong>1,000 megawatts, or one billion watts<\/strong>. Watts measure power at a particular moment. Watt-hours measure the energy consumed over time\u2014the distinction that matters when calculating an electricity bill. <a href=\"https:\/\/www.eia.gov\/energyexplained\/electricity\/measuring-electricity.php\">EIA\u2019s explanation of electricity measurements.<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here is a simple illustration using an assumed electricity price of <strong>$0.10 per kilowatt-hour<\/strong>, with continuous consumption for a full year:<\/p>\n\n\n<style>.kb-row-layout-id521887_edf386-a4 > .kt-row-column-wrap{align-content:start;}:where(.kb-row-layout-id521887_edf386-a4 > .kt-row-column-wrap) > .wp-block-kadence-column{justify-content:start;}.kb-row-layout-id521887_edf386-a4 > .kt-row-column-wrap{column-gap:var(--global-kb-gap-md, 2rem);row-gap:var(--global-kb-gap-md, 2rem);padding-top:var(--global-kb-spacing-sm, 1.5rem);padding-bottom:var(--global-kb-spacing-sm, 1.5rem);}.kb-row-layout-id521887_edf386-a4 > .kt-row-column-wrap > div:not(.added-for-specificity){grid-column:initial;}.kb-row-layout-id521887_edf386-a4 > .kt-row-column-wrap{grid-template-columns:minmax(0, 1fr) minmax(0, 3fr) minmax(0, 1fr);}.kb-row-layout-id521887_edf386-a4 > .kt-row-layout-overlay{opacity:0.30;}@media all and (max-width: 1024px){.kb-row-layout-id521887_edf386-a4 > .kt-row-column-wrap > div:not(.added-for-specificity){grid-column:initial;}}@media all and (max-width: 1024px){.kb-row-layout-id521887_edf386-a4 > .kt-row-column-wrap{grid-template-columns:minmax(0, 1fr) minmax(0, 3fr) minmax(0, 1fr);}}@media all and (max-width: 767px){.kb-row-layout-id521887_edf386-a4 > .kt-row-column-wrap > div:not(.added-for-specificity){grid-column:initial;}.kb-row-layout-id521887_edf386-a4 > .kt-row-column-wrap{grid-template-columns:minmax(0, 1fr);}}<\/style><div class=\"kb-row-layout-wrap kb-row-layout-id521887_edf386-a4 alignnone wp-block-kadence-rowlayout\"><div class=\"kt-row-column-wrap kt-has-3-columns kt-row-layout-center-wide kt-tab-layout-inherit kt-mobile-layout-row kt-row-valign-top\">\n<style>.kadence-column521887_ba4a45-c5 > .kt-inside-inner-col,.kadence-column521887_ba4a45-c5 > .kt-inside-inner-col:before{border-top-left-radius:0px;border-top-right-radius:0px;border-bottom-right-radius:0px;border-bottom-left-radius:0px;}.kadence-column521887_ba4a45-c5 > .kt-inside-inner-col{column-gap:var(--global-kb-gap-sm, 1rem);}.kadence-column521887_ba4a45-c5 > .kt-inside-inner-col{flex-direction:column;}.kadence-column521887_ba4a45-c5 > .kt-inside-inner-col > .aligncenter{width:100%;}.kadence-column521887_ba4a45-c5 > .kt-inside-inner-col:before{opacity:0.3;}.kadence-column521887_ba4a45-c5{position:relative;}@media all and (max-width: 1024px){.kadence-column521887_ba4a45-c5 > .kt-inside-inner-col{flex-direction:column;justify-content:center;}}@media all and (max-width: 767px){.kadence-column521887_ba4a45-c5 > .kt-inside-inner-col{flex-direction:column;justify-content:center;}}<\/style>\n<div class=\"wp-block-kadence-column kadence-column521887_ba4a45-c5\"><div class=\"kt-inside-inner-col\"><\/div><\/div>\n\n\n<style>.kadence-column521887_df231b-d7 > .kt-inside-inner-col,.kadence-column521887_df231b-d7 > .kt-inside-inner-col:before{border-top-left-radius:0px;border-top-right-radius:0px;border-bottom-right-radius:0px;border-bottom-left-radius:0px;}.kadence-column521887_df231b-d7 > .kt-inside-inner-col{column-gap:var(--global-kb-gap-sm, 1rem);}.kadence-column521887_df231b-d7 > .kt-inside-inner-col{flex-direction:column;}.kadence-column521887_df231b-d7 > .kt-inside-inner-col > .aligncenter{width:100%;}.kadence-column521887_df231b-d7 > .kt-inside-inner-col:before{opacity:0.3;}.kadence-column521887_df231b-d7{position:relative;}@media all and (max-width: 1024px){.kadence-column521887_df231b-d7 > .kt-inside-inner-col{flex-direction:column;justify-content:center;}}@media all and (max-width: 767px){.kadence-column521887_df231b-d7 > .kt-inside-inner-col{flex-direction:column;justify-content:center;}}<\/style>\n<div class=\"wp-block-kadence-column kadence-column521887_df231b-d7\"><div class=\"kt-inside-inner-col\">\n<figure class=\"wp-block-table\"><table><thead><tr><th>Continuous power consumption<\/th><th>Annual electricity cost<\/th><\/tr><\/thead><tbody><tr><td>1 megawatt<\/td><td>$876,000<\/td><\/tr><tr><td>100 megawatts<\/td><td>$87.6 million<\/td><\/tr><tr><td>1 gigawatt<\/td><td>$876 million<\/td><\/tr><\/tbody><\/table><\/figure>\n<\/div><\/div>\n\n\n<style>.kadence-column521887_f32deb-d7 > .kt-inside-inner-col,.kadence-column521887_f32deb-d7 > .kt-inside-inner-col:before{border-top-left-radius:0px;border-top-right-radius:0px;border-bottom-right-radius:0px;border-bottom-left-radius:0px;}.kadence-column521887_f32deb-d7 > .kt-inside-inner-col{column-gap:var(--global-kb-gap-sm, 1rem);}.kadence-column521887_f32deb-d7 > .kt-inside-inner-col{flex-direction:column;}.kadence-column521887_f32deb-d7 > .kt-inside-inner-col > .aligncenter{width:100%;}.kadence-column521887_f32deb-d7 > .kt-inside-inner-col:before{opacity:0.3;}.kadence-column521887_f32deb-d7{position:relative;}@media all and (max-width: 1024px){.kadence-column521887_f32deb-d7 > .kt-inside-inner-col{flex-direction:column;justify-content:center;}}@media all and (max-width: 767px){.kadence-column521887_f32deb-d7 > .kt-inside-inner-col{flex-direction:column;justify-content:center;}}<\/style>\n<div class=\"wp-block-kadence-column kadence-column521887_f32deb-d7\"><div class=\"kt-inside-inner-col\"><\/div><\/div>\n\n<\/div><\/div>\n\n\n<p class=\"wp-block-paragraph\">These are illustrative calculations, not actual data center rates. They cover electricity for the stated load; buying computers, constructing facilities, staffing them, and financing everything adds separate costs.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The arithmetic alone is striking: a gigawatt consumed continuously means almost <strong>$2.4 million of electricity every day<\/strong> at that assumed rate.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Then comes the more interesting question: what does that power produce?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Imagine two businesses with the same electricity budget.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">One uses its computers to perform a task customers barely value. The other delivers a service customers depend on every day.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Their electricity consumption might match. Their businesses could have completely different economics.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That is why I find \u201cgigawatts\u201d useful but incomplete. A power figure tells us something about the scale of the operation. To understand its value, we also need to know how much useful work the equipment completes, how reliably it completes it, and what customers will pay.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">My way of thinking about it is:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Electricity \u2192 computing \u2192 useful results \u2192 customer value \u2192 revenue<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Every step matters. A faster answer that requires extensive correction may be less valuable than a slower answer someone can confidently use.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>The trillion-dollar example needs context<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>The 100\u00d7 Idea That Blew My Mind<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here is where the conversation really got my attention.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Around seven minutes in, Dwarkesh explores a scenario in which approximately <strong>$6 billion in semiconductor-factory investment<\/strong> enables production of enough chips to add <strong>one gigawatt of computing capacity every year<\/strong>. He assumes each gigawatt generates <strong>$100 billion in annual AI revenue<\/strong>. His rough 100\u00d7 comparison relates the factory investment to downstream revenue accumulated over several years. <a href=\"https:\/\/www.youtube.com\/watch?v=aV26V1UvkJw&amp;t=421s\">Watch this part of the discussion.<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The factory keeps producing equipment. Each new group of computers generates revenue alongside the previous groups. That compounding production is what makes the numbers so striking.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To explore the economics, let\u2019s add an <strong>illustrative annual compute cost of $15 billion per gigawatt<\/strong>. The discussion mentions compute costs around $10\u201315 million per megawatt; we are using the upper end as an annual modeling assumption. Dylan also emphasizes that power, data centers, installation, and other expenses must be funded. <a href=\"https:\/\/www.dwarkesh.com\/p\/dylan-patel-3\">Source: official transcript.<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here is what the simplified scenario looks like:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Year<\/th><th>Operating capacity<\/th><th>Annual AI revenue<\/th><th>Estimated annual compute cost<\/th><th>Illustrative gross profit*<\/th><\/tr><\/thead><tbody><tr><td>1<\/td><td>1 gigawatt<\/td><td>$100 billion<\/td><td>$15 billion<\/td><td>$85 billion<\/td><\/tr><tr><td>2<\/td><td>2 gigawatts<\/td><td>$200 billion<\/td><td>$30 billion<\/td><td>$170 billion<\/td><\/tr><tr><td>3<\/td><td>3 gigawatts<\/td><td>$300 billion<\/td><td>$45 billion<\/td><td>$255 billion<\/td><\/tr><tr><td>4<\/td><td>4 gigawatts<\/td><td>$400 billion<\/td><td>$60 billion<\/td><td>$340 billion<\/td><\/tr><tr><td>5<\/td><td>5 gigawatts<\/td><td>$500 billion<\/td><td>$75 billion<\/td><td>$425 billion<\/td><\/tr><tr><td><strong>Five-year total<\/strong><\/td><td><strong>5 GW operating by Year 5<\/strong><\/td><td><strong>$1.5 trillion<\/strong><\/td><td><strong>$225 billion<\/strong><\/td><td><strong>$1.275 trillion<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Illustrative gross profit equals revenue minus modeled compute costs, assuming those costs cover all direct service-delivery expenses. It excludes research and corporate overhead and is not net profit. Each annual addition operates for a full year, with no retirement of earlier equipment and unchanged revenue and cost per gigawatt.<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>And how much of that is electricity?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Using an assumed electricity price of <strong>$0.10 per kilowatt-hour<\/strong>, consuming one gigawatt continuously would cost approximately <strong>$876 million per year<\/strong>, or <strong>$2.4 million per day<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That electricity expense is one component of supplying compute. The broader cost must also account for equipment, networking, facilities, maintenance, and related expenses. If electricity is included in the modeled compute cost, we should not add it again.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Over five years, the table produces <strong>$1.5 trillion in revenue<\/strong>. Dividing that by the initial $6 billion factory investment gives 250\u00d7. Even halving the revenue leaves a ratio of 125\u00d7.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But that denominator covers only the semiconductor factory. It does not represent everything invested across the entire operation, so this calculation cannot establish a 100\u00d7 investment return.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The table also implies an <strong>85% gross margin<\/strong>\u2014an exceptionally optimistic result. It depends on keeping the assumed revenue high and compute costs fixed while expanding every year. Equipment aging, construction delays, lower utilization, rising costs, or declining prices would change the outcome.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">What blows my mind is the possibility behind the arithmetic: <strong>computing infrastructure can support a stream of valuable work, year after year.<\/strong> Understanding what customers will pay for that work is just as important as understanding the electricity bill.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Place this <strong>immediately after \u201cThe 100\u00d7 Idea That Blew My Mind\u201d and before \u201cWhy This Matters to the Rest of Us: Will Tokens Get Cheaper?\u201d<\/strong> That moves naturally from the economics of one gigawatt, to worldwide demand, to what it means for readers\u2019 AI bills.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>How Many Gigawatts Will Power the Next Era?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If the economics of one gigawatt are striking, the worldwide projections take this conversation to another level.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In the podcast, Dylan outlines a scenario for new computing capacity:<\/p>\n\n\n<style>.kb-row-layout-id521887_e48c9d-ba > .kt-row-column-wrap{align-content:start;}:where(.kb-row-layout-id521887_e48c9d-ba > .kt-row-column-wrap) > .wp-block-kadence-column{justify-content:start;}.kb-row-layout-id521887_e48c9d-ba > .kt-row-column-wrap{column-gap:var(--global-kb-gap-md, 2rem);row-gap:var(--global-kb-gap-md, 2rem);padding-top:var(--global-kb-spacing-sm, 1.5rem);padding-bottom:var(--global-kb-spacing-sm, 1.5rem);}.kb-row-layout-id521887_e48c9d-ba > .kt-row-column-wrap > div:not(.added-for-specificity){grid-column:initial;}.kb-row-layout-id521887_e48c9d-ba > .kt-row-column-wrap{grid-template-columns:minmax(0, 1fr) minmax(0, 6fr) minmax(0, 1fr);}.kb-row-layout-id521887_e48c9d-ba > .kt-row-layout-overlay{opacity:0.30;}@media all and (max-width: 1024px){.kb-row-layout-id521887_e48c9d-ba > .kt-row-column-wrap > div:not(.added-for-specificity){grid-column:initial;}}@media all and (max-width: 1024px){.kb-row-layout-id521887_e48c9d-ba > .kt-row-column-wrap{grid-template-columns:minmax(0, 1fr) minmax(0, 6fr) minmax(0, 1fr);}}@media all and (max-width: 767px){.kb-row-layout-id521887_e48c9d-ba > .kt-row-column-wrap > div:not(.added-for-specificity){grid-column:initial;}.kb-row-layout-id521887_e48c9d-ba > .kt-row-column-wrap{grid-template-columns:minmax(0, 1fr);}}<\/style><div class=\"kb-row-layout-wrap kb-row-layout-id521887_e48c9d-ba alignnone wp-block-kadence-rowlayout\"><div class=\"kt-row-column-wrap kt-has-3-columns kt-row-layout-center-exwide kt-tab-layout-inherit kt-mobile-layout-row kt-row-valign-top\">\n<style>.kadence-column521887_5cb659-65 > .kt-inside-inner-col,.kadence-column521887_5cb659-65 > .kt-inside-inner-col:before{border-top-left-radius:0px;border-top-right-radius:0px;border-bottom-right-radius:0px;border-bottom-left-radius:0px;}.kadence-column521887_5cb659-65 > .kt-inside-inner-col{column-gap:var(--global-kb-gap-sm, 1rem);}.kadence-column521887_5cb659-65 > .kt-inside-inner-col{flex-direction:column;}.kadence-column521887_5cb659-65 > .kt-inside-inner-col > .aligncenter{width:100%;}.kadence-column521887_5cb659-65 > .kt-inside-inner-col:before{opacity:0.3;}.kadence-column521887_5cb659-65{position:relative;}@media all and (max-width: 1024px){.kadence-column521887_5cb659-65 > .kt-inside-inner-col{flex-direction:column;justify-content:center;}}@media all and (max-width: 767px){.kadence-column521887_5cb659-65 > .kt-inside-inner-col{flex-direction:column;justify-content:center;}}<\/style>\n<div class=\"wp-block-kadence-column kadence-column521887_5cb659-65\"><div class=\"kt-inside-inner-col\"><\/div><\/div>\n\n\n<style>.kadence-column521887_ae1633-0e > .kt-inside-inner-col,.kadence-column521887_ae1633-0e > .kt-inside-inner-col:before{border-top-left-radius:0px;border-top-right-radius:0px;border-bottom-right-radius:0px;border-bottom-left-radius:0px;}.kadence-column521887_ae1633-0e > .kt-inside-inner-col{column-gap:var(--global-kb-gap-sm, 1rem);}.kadence-column521887_ae1633-0e > .kt-inside-inner-col{flex-direction:column;}.kadence-column521887_ae1633-0e > .kt-inside-inner-col > .aligncenter{width:100%;}.kadence-column521887_ae1633-0e > .kt-inside-inner-col:before{opacity:0.3;}.kadence-column521887_ae1633-0e{position:relative;}@media all and (max-width: 1024px){.kadence-column521887_ae1633-0e > .kt-inside-inner-col{flex-direction:column;justify-content:center;}}@media all and (max-width: 767px){.kadence-column521887_ae1633-0e > .kt-inside-inner-col{flex-direction:column;justify-content:center;}}<\/style>\n<div class=\"wp-block-kadence-column kadence-column521887_ae1633-0e\"><div class=\"kt-inside-inner-col\">\n<figure class=\"wp-block-table\"><table><thead><tr><th>Year<\/th><th>New global computing capacity added that year<\/th><\/tr><\/thead><tbody><tr><td>2026<\/td><td>Approximately <strong>30 gigawatts<\/strong><\/td><\/tr><tr><td>2027<\/td><td>Approximately <strong>50 gigawatts<\/strong><\/td><\/tr><tr><td>2028<\/td><td>Approximately <strong>70 gigawatts<\/strong>, with <strong>80<\/strong> discussed as an optimistic upper bound<\/td><\/tr><tr><td><strong>Total added over three years<\/strong><\/td><td><strong>Approximately 150\u2013160 gigawatts<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n<\/div><\/div>\n\n\n<style>.kadence-column521887_a22c70-94 > .kt-inside-inner-col,.kadence-column521887_a22c70-94 > .kt-inside-inner-col:before{border-top-left-radius:0px;border-top-right-radius:0px;border-bottom-right-radius:0px;border-bottom-left-radius:0px;}.kadence-column521887_a22c70-94 > .kt-inside-inner-col{column-gap:var(--global-kb-gap-sm, 1rem);}.kadence-column521887_a22c70-94 > .kt-inside-inner-col{flex-direction:column;}.kadence-column521887_a22c70-94 > .kt-inside-inner-col > .aligncenter{width:100%;}.kadence-column521887_a22c70-94 > .kt-inside-inner-col:before{opacity:0.3;}.kadence-column521887_a22c70-94{position:relative;}@media all and (max-width: 1024px){.kadence-column521887_a22c70-94 > .kt-inside-inner-col{flex-direction:column;justify-content:center;}}@media all and (max-width: 767px){.kadence-column521887_a22c70-94 > .kt-inside-inner-col{flex-direction:column;justify-content:center;}}<\/style>\n<div class=\"wp-block-kadence-column kadence-column521887_a22c70-94\"><div class=\"kt-inside-inner-col\"><\/div><\/div>\n\n<\/div><\/div>\n\n\n<p class=\"wp-block-paragraph\">These are additions each year, on top of existing capacity. The speakers also explore OpenAI and Anthropic using approximately <strong>100 gigawatts combined by the end of 2028<\/strong>. Dylan describes that as a very aggressive goal, dependent on available supply and how much the labs can afford to pay. Their capacity would be included in the global figures. <a href=\"https:\/\/www.youtube.com\/watch?v=aV26V1UvkJw&amp;t=316s\">Source: podcast discussion.<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>What would 100 gigawatts mean in practice?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If consumed continuously, that much power would translate into <strong>876 terawatt-hours of electricity annually<\/strong>. At our illustrative electricity rate of $0.10 per kilowatt-hour, the bill would reach <strong>$87.6 billion per year\u2014for electricity alone<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For perspective, the International Energy Agency\u2019s <strong>2025 base-case forecast<\/strong> projected <strong>945 terawatt-hours of annual electricity consumption across all data centers worldwide by 2030<\/strong>. That equals approximately <strong>108 gigawatts of average continuous demand<\/strong>, covering AI and conventional computing together. <a href=\"https:\/\/www.iea.org\/reports\/energy-and-ai\/energy-demand-from-ai\">Source: IEA, Energy and AI.<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The figures measure different things: installed computing capacity may not operate at full power continuously, while cooling and other facility systems also consume electricity. Even with those differences, the comparison makes the podcast\u2019s aggressive assumptions clear.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These are scenarios for expansion, rather than a fixed amount of power required to reach the next stage of AI. More efficient equipment could deliver more work per watt, while greater adoption could increase total demand.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">What strikes me is how physical this future becomes. Every AI interaction ultimately depends on equipment, electricity, and infrastructure someone must build and operate. <strong>How quickly that infrastructure expands\u2014and how efficiently we use it\u2014will help determine what AI costs all of us.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Why This Matters to the Rest of Us: Will Tokens Get Cheaper?<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Most of us buy access to AI through subscriptions or token-based pricing. Tokens are the pieces of information a model processes and generates. Behind each response sits computing equipment consuming electricity.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That connects the economics of gigawatts directly to our AI bills.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>My expectation: comparable AI capabilities will generally get cheaper per token over time, while our total spending on AI could increase.<\/strong> Access to the most capable models may also remain expensive. That is an inference, not a guarantee.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">There are two forces pulling prices in different directions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Better hardware and software can produce more tokens from the same resources, reducing the cost of serving a model. We have already seen substantial declines: Stanford\u2019s 2025 AI Index reported that the inference price for GPT-3.5-level performance fell more than 280-fold between November 2022 and October 2024. That compares a consistent capability level, rather than the newest premium model each year. <a href=\"https:\/\/hai.stanford.edu\/assets\/files\/hai_ai_index_report_2025.pdf\">Source: Stanford AI Index.<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Meanwhile, the podcast argues that labs earning more from compute can bid more aggressively for scarce capacity. That could increase infrastructure prices and offset some efficiency gains. It does not automatically mean retail token prices rise, because those also depend on competition and providers\u2019 pricing decisions. <a href=\"https:\/\/www.dwarkesh.com\/p\/dylan-patel-3\">Source: podcast discussion.<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For me, the likely outcome looks like this:<\/p>\n\n\n<style>.kb-row-layout-id521887_7e687b-26 > .kt-row-column-wrap{align-content:start;}:where(.kb-row-layout-id521887_7e687b-26 > .kt-row-column-wrap) > .wp-block-kadence-column{justify-content:start;}.kb-row-layout-id521887_7e687b-26 > .kt-row-column-wrap{column-gap:var(--global-kb-gap-md, 2rem);row-gap:var(--global-kb-gap-md, 2rem);padding-top:var(--global-kb-spacing-sm, 1.5rem);padding-bottom:var(--global-kb-spacing-sm, 1.5rem);}.kb-row-layout-id521887_7e687b-26 > .kt-row-column-wrap > div:not(.added-for-specificity){grid-column:initial;}.kb-row-layout-id521887_7e687b-26 > .kt-row-column-wrap{grid-template-columns:minmax(0, 1fr) minmax(0, 6fr) minmax(0, 1fr);}.kb-row-layout-id521887_7e687b-26 > .kt-row-layout-overlay{opacity:0.30;}@media all and (max-width: 1024px){.kb-row-layout-id521887_7e687b-26 > .kt-row-column-wrap > div:not(.added-for-specificity){grid-column:initial;}}@media all and (max-width: 1024px){.kb-row-layout-id521887_7e687b-26 > .kt-row-column-wrap{grid-template-columns:minmax(0, 1fr) minmax(0, 6fr) minmax(0, 1fr);}}@media all and (max-width: 767px){.kb-row-layout-id521887_7e687b-26 > .kt-row-column-wrap > div:not(.added-for-specificity){grid-column:initial;}.kb-row-layout-id521887_7e687b-26 > .kt-row-column-wrap{grid-template-columns:minmax(0, 1fr);}}<\/style><div class=\"kb-row-layout-wrap kb-row-layout-id521887_7e687b-26 alignnone wp-block-kadence-rowlayout\"><div class=\"kt-row-column-wrap kt-has-3-columns kt-row-layout-center-exwide kt-tab-layout-inherit kt-mobile-layout-row kt-row-valign-top\">\n<style>.kadence-column521887_197470-95 > .kt-inside-inner-col,.kadence-column521887_197470-95 > .kt-inside-inner-col:before{border-top-left-radius:0px;border-top-right-radius:0px;border-bottom-right-radius:0px;border-bottom-left-radius:0px;}.kadence-column521887_197470-95 > .kt-inside-inner-col{column-gap:var(--global-kb-gap-sm, 1rem);}.kadence-column521887_197470-95 > .kt-inside-inner-col{flex-direction:column;}.kadence-column521887_197470-95 > .kt-inside-inner-col > .aligncenter{width:100%;}.kadence-column521887_197470-95 > .kt-inside-inner-col:before{opacity:0.3;}.kadence-column521887_197470-95{position:relative;}@media all and (max-width: 1024px){.kadence-column521887_197470-95 > .kt-inside-inner-col{flex-direction:column;justify-content:center;}}@media all and (max-width: 767px){.kadence-column521887_197470-95 > .kt-inside-inner-col{flex-direction:column;justify-content:center;}}<\/style>\n<div class=\"wp-block-kadence-column kadence-column521887_197470-95\"><div class=\"kt-inside-inner-col\"><\/div><\/div>\n\n\n<style>.kadence-column521887_9c9e72-88 > .kt-inside-inner-col,.kadence-column521887_9c9e72-88 > .kt-inside-inner-col:before{border-top-left-radius:0px;border-top-right-radius:0px;border-bottom-right-radius:0px;border-bottom-left-radius:0px;}.kadence-column521887_9c9e72-88 > .kt-inside-inner-col{column-gap:var(--global-kb-gap-sm, 1rem);}.kadence-column521887_9c9e72-88 > .kt-inside-inner-col{flex-direction:column;}.kadence-column521887_9c9e72-88 > .kt-inside-inner-col > .aligncenter{width:100%;}.kadence-column521887_9c9e72-88 > .kt-inside-inner-col:before{opacity:0.3;}.kadence-column521887_9c9e72-88{position:relative;}@media all and (max-width: 1024px){.kadence-column521887_9c9e72-88 > .kt-inside-inner-col{flex-direction:column;justify-content:center;}}@media all and (max-width: 767px){.kadence-column521887_9c9e72-88 > .kt-inside-inner-col{flex-direction:column;justify-content:center;}}<\/style>\n<div class=\"wp-block-kadence-column kadence-column521887_9c9e72-88\"><div class=\"kt-inside-inner-col\">\n<figure class=\"wp-block-table\"><table><thead><tr><th>What we pay for<\/th><th>My expectation<\/th><\/tr><\/thead><tbody><tr><td>A comparable level of AI capability<\/td><td>Token prices generally trend downward as efficiency and competition improve<\/td><\/tr><tr><td>The newest, most capable models or fastest service<\/td><td>Premium prices could persist, with increases possible when capacity is scarce<\/td><\/tr><tr><td>Our total monthly AI usage<\/td><td>Bills could rise as we automate more work and consume more tokens<\/td><\/tr><\/tbody><\/table><\/figure>\n<\/div><\/div>\n\n\n<style>.kadence-column521887_36a732-b7 > .kt-inside-inner-col,.kadence-column521887_36a732-b7 > .kt-inside-inner-col:before{border-top-left-radius:0px;border-top-right-radius:0px;border-bottom-right-radius:0px;border-bottom-left-radius:0px;}.kadence-column521887_36a732-b7 > .kt-inside-inner-col{column-gap:var(--global-kb-gap-sm, 1rem);}.kadence-column521887_36a732-b7 > .kt-inside-inner-col{flex-direction:column;}.kadence-column521887_36a732-b7 > .kt-inside-inner-col > .aligncenter{width:100%;}.kadence-column521887_36a732-b7 > .kt-inside-inner-col:before{opacity:0.3;}.kadence-column521887_36a732-b7{position:relative;}@media all and (max-width: 1024px){.kadence-column521887_36a732-b7 > .kt-inside-inner-col{flex-direction:column;justify-content:center;}}@media all and (max-width: 767px){.kadence-column521887_36a732-b7 > .kt-inside-inner-col{flex-direction:column;justify-content:center;}}<\/style>\n<div class=\"wp-block-kadence-column kadence-column521887_36a732-b7\"><div class=\"kt-inside-inner-col\"><\/div><\/div>\n\n<\/div><\/div>\n\n\n<p class=\"wp-block-paragraph\">Here is a simple example: <strong>if token prices fall by half but our usage grows fivefold, our bill becomes 2.5 times larger.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">An occasional chat and an automated workflow running throughout the day have very different consumption patterns. Lower prices can make more projects worthwhile\u2014and encourage us to use much more AI.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That is why I keep returning to <strong>cost per successfully completed task<\/strong>. A cheaper model offers little savings if it needs repeated attempts and extensive corrections. A more expensive model can be economical if it completes the work reliably.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This connects directly to my writing on <a href=\"https:\/\/jorgep.com\/blog\/the-quest-for-token-efficiency-why-every-token-matters-now\/\">token efficiency<\/a>: send only the context needed, avoid unnecessary repetition, and match the model to the job. Local AI can also be worth evaluating for suitable workloads, accounting for hardware, electricity, maintenance, and utilization.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>I expect us to get more AI capability for each dollar. Whether we spend fewer dollars will depend on how much work we ask AI to do.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">There is plenty here to question, explore, and think about.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For me, the question that stays with me is this: <strong>How much useful work can we create from the resources we consume\u2014and who gets the benefit?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/youtu.be\/aV26V1UvkJw\">Watch the full conversation on YouTube.<\/a><\/p>\n\n\n<style>.wp-block-kadence-advancedheading.kt-adv-heading407818_afcbba-c7, .wp-block-kadence-advancedheading.kt-adv-heading407818_afcbba-c7[data-kb-block=\"kb-adv-heading407818_afcbba-c7\"]{font-size:var(--global-kb-font-size-sm, 0.9rem);font-style:normal;}.wp-block-kadence-advancedheading.kt-adv-heading407818_afcbba-c7 mark.kt-highlight, .wp-block-kadence-advancedheading.kt-adv-heading407818_afcbba-c7[data-kb-block=\"kb-adv-heading407818_afcbba-c7\"] mark.kt-highlight{font-style:normal;color:#f76a0c;-webkit-box-decoration-break:clone;box-decoration-break:clone;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;}.wp-block-kadence-advancedheading.kt-adv-heading407818_afcbba-c7 img.kb-inline-image, .wp-block-kadence-advancedheading.kt-adv-heading407818_afcbba-c7[data-kb-block=\"kb-adv-heading407818_afcbba-c7\"] img.kb-inline-image{width:150px;vertical-align:baseline;}<\/style>\n<p class=\"kt-adv-heading407818_afcbba-c7 wp-block-kadence-advancedheading\" data-kb-block=\"kb-adv-heading407818_afcbba-c7\">Have questions, ideas to share, or just want to connect? I\u2019d love to hear from you! Check out my <a href=\"https:\/\/jorgep.com\/blog\/about\/\">About Page<\/a> to learn more about me or connect with me.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Every once in a while, I come across a discussion that makes me step back and rethink the bigger picture. This conversation between Dwarkesh Patel and SemiAnalysis founder Dylan Patel is one of those. Mind-blowing! Dylan\u2019s central argument is that AI companies capable of earning more from their computing capacity can afford to bid more&#8230;<\/p>\n","protected":false},"author":2,"featured_media":521889,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","ngg_post_thumbnail":0,"episode_type":"","audio_file":"","podmotor_file_id":"","podmotor_episode_id":"","cover_image":"","cover_image_id":"","duration":"","filesize":"","filesize_raw":"","date_recorded":"","explicit":"","block":"","itunes_episode_number":"","itunes_title":"","itunes_season_number":"","itunes_episode_type":"","_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"categories":[1070,441],"tags":[930,894,1058,1017],"class_list":["post-521887","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-perspectives","category-tech-talk","tag-ai-series","tag-artificial-intelligence","tag-tech-supply-chain-crunch","tag-tokens"],"taxonomy_info":{"category":[{"value":1070,"label":"Perspectives"},{"value":441,"label":"Tech Talk"}],"post_tag":[{"value":930,"label":"AI Series"},{"value":894,"label":"artificial intelligence"},{"value":1058,"label":"Tech Supply Chain Crunch"},{"value":1017,"label":"Tokens"}]},"featured_image_src_large":["https:\/\/jorgep.com\/blog\/wp-content\/uploads\/FeaturedImage-TokenEconomics-gigawatts-1024x384.jpg",1024,384,true],"author_info":{"display_name":"Jorge Pereira","author_link":"https:\/\/jorgep.com\/blog\/author\/jorge\/"},"comment_info":0,"category_info":[{"term_id":1070,"name":"Perspectives","slug":"perspectives","term_group":0,"term_taxonomy_id":1080,"taxonomy":"category","description":"","parent":0,"count":240,"filter":"raw","cat_ID":1070,"category_count":240,"category_description":"","cat_name":"Perspectives","category_nicename":"perspectives","category_parent":0},{"term_id":441,"name":"Tech Talk","slug":"tech-talk","term_group":0,"term_taxonomy_id":451,"taxonomy":"category","description":"","parent":0,"count":754,"filter":"raw","cat_ID":441,"category_count":754,"category_description":"","cat_name":"Tech Talk","category_nicename":"tech-talk","category_parent":0}],"tag_info":[{"term_id":930,"name":"AI Series","slug":"ai-series","term_group":0,"term_taxonomy_id":940,"taxonomy":"post_tag","description":"","parent":0,"count":242,"filter":"raw"},{"term_id":894,"name":"artificial intelligence","slug":"artificial-intelligence","term_group":0,"term_taxonomy_id":904,"taxonomy":"post_tag","description":"","parent":0,"count":215,"filter":"raw"},{"term_id":1058,"name":"Tech Supply Chain Crunch","slug":"tech-supply-chain-crunch","term_group":0,"term_taxonomy_id":1068,"taxonomy":"post_tag","description":"","parent":0,"count":7,"filter":"raw"},{"term_id":1017,"name":"Tokens","slug":"tokens","term_group":0,"term_taxonomy_id":1027,"taxonomy":"post_tag","description":"","parent":0,"count":6,"filter":"raw"}],"_links":{"self":[{"href":"https:\/\/jorgep.com\/blog\/wp-json\/wp\/v2\/posts\/521887","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jorgep.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jorgep.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jorgep.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/jorgep.com\/blog\/wp-json\/wp\/v2\/comments?post=521887"}],"version-history":[{"count":6,"href":"https:\/\/jorgep.com\/blog\/wp-json\/wp\/v2\/posts\/521887\/revisions"}],"predecessor-version":[{"id":521897,"href":"https:\/\/jorgep.com\/blog\/wp-json\/wp\/v2\/posts\/521887\/revisions\/521897"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/jorgep.com\/blog\/wp-json\/wp\/v2\/media\/521889"}],"wp:attachment":[{"href":"https:\/\/jorgep.com\/blog\/wp-json\/wp\/v2\/media?parent=521887"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jorgep.com\/blog\/wp-json\/wp\/v2\/categories?post=521887"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jorgep.com\/blog\/wp-json\/wp\/v2\/tags?post=521887"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}