causal

Energy and chips are substitutable AI inputs

In the five-layer AI cake with energy at the base, an abundance of energy compensates for weaker chips and vice versa: the energy-scarce US must advance architecture for maximum throughput-per-watt, while energy-abundant China can use older 7nm (Hopper-class) chips and simply use more of them.

causalpending

Speaker

Jensen Huang

Evidence Quote

But if your amount of watts is completely abundant, it’s free, what do you care about performance per watt for? You get plenty. You can use old chips to do.

Source

Dwarkesh Patel Podcast - Jensen Huang – TPU competition, why we should sell chips to China, & Nvidia’s supply chain moatDwarkesh Patel Podcast
Created: 6/13/2026, 3:37:32 AM

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