Stargate, ChatGPT, and Big Tech’s AI plans are already dying
by Inside China Business [7-27-2025 published].
Growth in electricity generation over the last 25yrs: China 6,000%, USA 0%
(The above graph dramatically illustrates the huge problem faced by the United States in their attempt to compete with China in advancing Artificial Intelligence (AI). From 2022 to 2025 the US population grew from 334 to 342 million with no growth in available electricity. As Kevin discusses in the above video, the creation & use of advanced AI requires massive amounts of electricity for the server farms deploying AI. Today in the US we don't have any spare electricity & often have rolling blackouts during peak usage in parts of the country. We have NO effective plans in place for significantly increasing available electricity.
The AI systems being built in the US have another problem that he didn't mention. They incorporate 'woke' nonsense that the government requires. For example, many will say that humans can have many genders besides male & female. They will also spit out results that violate known laws of physics, chemistry & other laws of nature. This means that these AI systems are NOT built on a solid foundation. You simply can't build a good AGI (Artificial General Intelligence) system on a faulty foundation.
This brings us to another advantage that China has with their AI development. Their DeepSeek & other implementations are NOT built on 'woke' nonsense. In fact, DeepSeek can already do analysis that requires an understanding of physics & other scientific relationships. In other words, China has already surpassed the US in key areas of AI development. — RAD)
AI and Robotics will create hundreds of thousands of high-paying jobs across the world over the next five years.
In the United States, trillions of dollars have been budgeted by Big Tech for new data centers, computer servers, and semiconductors.
But the industry is crashing into the inability of utilities to meet current demand for electricity, let alone to build out new sources of power supply, grid capacity, and transmission lines.
Big Tech companies are dramatically cutting back their planned projects and expansions for new data centers across the world, as regulators in the US and overseas are denying new permits for AI server farms.
High costs for electricity are running much hotter than consumer inflation, and creating deep structural problems in the economy. Households and small businesses are struggling to pay bills, and pushing for changes by lawmakers.
Closing scene, Guangzhou, Guangdong
Resources and links:
Reddit, r/economy, Growth in electricity generation China vs US
https://www.reddit.com/r/economy/comments/1bz7b02/growth_in_electricity_generation_over_the_last_25
World’s first commercial mini nuclear reactor ready to power 526,000 homes in China
https://interestingengineering.com/energy/china-mini-nuclear-reactor-power-homes
Bloomberg, Microsoft Pulls Back on Data Centers From Chicago to Jakarta
https://www.bloomberg.com/news/articles/2025-04-03/microsoft-pulls-back-on-data-centers-from-chicago-to-jakarta
Defense News, Power generation challenges could overshadow Stargate AI initiative
https://www.defensenews.com/pentagon/2025/01/24/power-generation-challenges-could-overshadow-stargate-ai-initiative
Wall Street Journal, SoftBank and OpenAI’s $500 Billion AI Project Struggles to Get Off Ground
https://www.wsj.com/tech/ai/softbank-openai-a3dc57b4
Bloomberg, Amazon Scraps €300 Million New Irish Plant in Blow to State
https://www.bloomberg.com/news/articles/2025-07-25/amazon-scraps-new-irish-plant-on-energy-issues-irish-times-says
AP, Ireland embraced data centers that the AI boom needs. Now they’re consuming too much of its energy
https://apnews.com/article/ai-data-centers-ireland-6c0d63cbda3df740cd9bf2829ad62058
NJ law to study data centers' impacts on electricity grid advances
https://www.northjersey.com/story/news/new-jersey/2025/06/03/nj-electric-rates-law-study-data-centers-advances/83997198007
Open AI's massive Project Stargate is already struggling, may be scaled back
https://www.techradar.com/pro/open-ais-project-stargate-is-already-struggling-may-be-scaled-back
A transformer supply crisis bottlenecks energy projects
https://spectrum.ieee.org/transformer-shortage
PowerLines, Utility bills are rising
https://powerlines.org/wp-content/uploads/2025/04/PowerLines_Utility-Bills-Are-Rising_2025-1.pdf
Vox, Why your energy bill is suddenly so much more expensive
https://www.vox.com/climate/420887/electricity-energy-bill-expensive-prices-rising
Why is my electric bill so high? New Jerseyans point fingers but what is being done?
https://www.northjersey.com/story/news/new-jersey/2025/07/24/why-is-my-electric-bill-so-high-what-to-know-about-rising-nj-rates/85330762007
EIA, U.S. electricity prices continue steady increase
https://www.eia.gov/todayinenergy/detail.php?id=65284
MIT, Confronting the AI/energy conundrum
https://climate.mit.edu/posts/confronting-aienergy-conundrum
Charted: The World’s Fastest Growing Jobs (2025-2030)
https://www.visualcapitalist.com/charted-the-worlds-fastest-growing-jobs-2025-2030
Related
https://www.youtube.com/@Inside_China_Business Key insights and strategies for global business owners and managers, from inside the world's factory and supply chains. We live and work in Mainland China, and travel extensively throughout the country to find the highest-quality products at competitive prices, for markets abroad. During many of our videos, we are saying a quiet prayer for the peace of the world, and that our content is helpful to our listeners.
China’s DeepSeek AI Moves the Capital of Tech from Palo Alto to Hangzhou [1-24-2025]
AI REASONING models will change everything: Health Ranger demonstrates chemistry solutions for herbal medicine extracts [1-23-2025] (This is a fascinating example of AI Reasoning that can even be installed on a personal computer and doesn't need to be connected to the internet. Mike Adams uses the recently released free DeepSeek R1 from China that he has installed on his desktop computer to demonstrate how important AI Reasoning really is. He lives on a ranch in Texas where the winter temperatures can get below freezing for multiple days. He has a tank that holds 1000 gallons of rainwater. If the water is currently 50 degF, the outside temperature is 20 degF with a 5 mph wind, how long will it take for the water to reach 32 degF and how much longer for all of the water to turn to ice? As Mike explains, this is a very complex chemistry, physics & math problem. Even though Mike didn't provide all of the relevant information needed to solve this problem, DeepSeek made appropriate assumptions to arrive at a solution. In fact, it provided a running description of the various assumptions and equations needed and it only took a few minutes to arrive at a solution. What Mike also finds fascinating is that it was China who recently provided this free program for anyone to use. Listen to Mike describe this solution and how DeepSeek can be used to solve all sorts of practical problems on computers without having to access an online service controlled by a few big players. — RAD)
Mike Adams & Fadi Lama – Why the West Can’t Win: From Bretton Woods to a Multipolar World [5-3-2024] (Dr. Fadi Lama has a PhD in Engineering and is skilled at analyzing data. As he explains in the above interview with Mike Adams, the normal ways of measuring economic progress, such as the GDP, are inadequate for understanding the economic health of countries around the world and their real competitive performance. It turns out that Energy is a Reliable Economic Indicator. Take a close look at the above graph and you will notice that the total Electricity Generation of the United States has remained essentially FLAT since 2000, even though our population has grown.
Now notice that the total Electricity Generation of the G-7 nations, which includes the United States, peaked around 2006 and has been decreasing ever since.
RIC is Russia, Iran & China. Notice that RIC Electricity Generation has been INCREASING since 1990 and really started climbing after 2000. It surpassed the United States around 2006 and the G-7 around 2016.
Carefully listen to this discussion to understand why this is a MAJOR PROBLEM for the entire West.
You will also learn how fighting wars has dramatically changed since WW2, yet the West & the United States have NOT adapted. Even Iran recently demonstrated that the most advanced military defense of Israel & the United States wasn't able to stop Iran from hitting desired targets within Israel & they didn't even used their most advanced missiles! Also, an old T-72 tank from the 1970s was able to knock out an M1 Abrams tank from the United States in Ukraine with only one shell. The cost difference between these two tanks is enormous. — RAD)