Technology
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Technology
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Compute becomes lifeblood, constraint of AI boom |
Computing power has become the lifeblood — and a key limiting factor — of the race to develop AI, as the push to integrate the technology into daily life clashes with the finite supply of one of its most crucial inputs.
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© AP Photo/Chiang Ying-ying
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Often referred to simply as “compute,” the processing power that forms the foundation of AI is limited by physical infrastructure: the chips, servers and data centers that take up space in the real world.
As AI companies grapple with the political and financial realities of obtaining and expanding access to compute, increased AI usage and the rise of agentic AI are raising the stakes and making that processing power even more valuable.
“Modern AI systems don't work without compute. You need compute for almost everything, and more compute is almost always better,” Erich Grunewald, a senior researcher on the compute policy team at the Institute for AI Policy and Strategy, told The Hill.
Compute has long been at the heart of the AI boom. For years, AI leaders have been pushing to rapidly build more data centers to support the vast computing needs of their technology.
Tech companies have poured billions of dollars into expanding AI infrastructure, investing more than $400 billion last year. Total AI capital expenditures could reach $800 billion this year and rise above $1 trillion in 2027, according to Bank of America estimates.
This endeavor initially enjoyed wide bipartisan appeal, with President Trump and former President Biden alike signing orders to fast-track data center construction.
But public opinion has rapidly shifted on data centers, complicating the politics surrounding the buildout. As Americans have become increasingly concerned about the impacts on their electricity bills and local environment, numerous projects have been blocked or delayed.
Read more in a full report at TheHill.com
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Welcome to The Hill’s Technology newsletter, we’re Julia Shapero and Miranda Nazzaro — tracking the latest moves from Capitol Hill to Silicon Valley.
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How policy will be impacting the tech sector now and in the future:
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Musk’s xAI, SpaceX sued over ‘pervasive and inescapable’ data center power plant noise
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Mississippi residents are suing Elon Musk’s xAI and SpaceX over the “pervasive and inescapable” noise from their data center and accompanying power plant in a Memphis, Tenn.-area community. Three individuals who live near the plant in Southaven, a city just south of Memphis across the Mississippi-Tennessee border, filed a class-action lawsuit Monday against Musk’s companies, arguing the noise is diminishing residents’ quality …
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SpaceX wants regular investors to help its stock launch. Here’s what to know before clicking ‘buy’
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NEW YORK (AP) — When SpaceX makes its debut on the U.S. stock market, it wants smaller-pocketed, mom-and-pop investors to play a big role in what may be the biggest IPO ever. Elon Musk’s rocket company, formally known as Space Exploration Technologies Corp., is steering some of its initial public offering of stock directly to what are called “retail” investors. These are people who buy stocks in a brokerage account on their …
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Kalshi planning to require some participants to identify employers
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Kalshi plans to require users in certain markets to share information about their employers in its latest push to crack down on insider trading. The prediction market announced Tuesday that it has created a system to score markets based on the risk of insider trading and manipulation. Those with certain scores will require employment verification. The new scoring system will take into account whether markets are related to …
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Poll: Half of Americans concerned over AI’s jobs impact
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A new Reuters/Ipsos poll found that more than half of respondents fear that they or someone in their household will lose their job because of artificial intelligence (AI). Fifty-three percent of the 4,531 respondents to the survey, conducted from June 3 through 8, were concerned that AI would have that effect, while 37 percent of respondents did not have that concern. Majorities of both Democrats and independents said they …
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News we’ve flagged from the intersection of tech and other topics:
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- Trump says he thinks AI companies will agree to 'giving back' to the public (Reuters)
- Anti-Nvidia data center startup is valued at $1.55 billion in new funding round (The Wall Street Journal)
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Branch out with other reads on The Hill:
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CFTC proposes new rules for prediction markets
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The Trump administration proposed new rules Wednesday for regulating prediction markets, seeking to clarify what types of events can be listed for trading on the platforms. The Commodity Futures Trading Commission’s (CFTC) proposal aims to specify what events the agency considers to be “contrary to the public interest” and would not be eligible for listing on the sites. Prediction markets, which have become increasingly …
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You’re all caught up. See you tomorrow!
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