• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
TechBrainstorm AI

AI could gobble up a quarter of all electricity in the U.S. by 2030 if it doesn’t break its energy addiction, says Arm Holdings exec

Christiaan Hetzner
By
Christiaan Hetzner
Christiaan Hetzner
Senior Reporter
Down Arrow Button Icon
Christiaan Hetzner
By
Christiaan Hetzner
Christiaan Hetzner
Senior Reporter
Down Arrow Button Icon
April 16, 2024, 5:36 AM ET
Ami Badani
Ami Badani, chief marketing officer of Arm Holdings, at Fortune Brainstorm AI in London.Joe Maher—Fortune Brainstorm AI

Before artificial intelligence can transform society, the technology will first have to learn how to live within its means.

Recommended Video

Right now generative AI has an “insatiable demand” for electricity to power the tens of thousands of compute clusters needed to operate large language models like OpenAI’s GPT-4, warned chief marketing officer Ami Badani of chip design firm Arm Holdings. 

If generative AI is ever going to be able to run on every mobile device from a laptop and tablet to a smartphone, it will have to be able to scale without overwhelming the electricity grid at the same time.

“We won’t be able to continue the advancements of AI without addressing power,” Badani told the Fortune Brainstorm AI conference in London on Monday. “ChatGPT requires 15 times more energy than a traditional web search.” 

Read more: I sold a $1.4B big-data startup to IBM—then founded a nature sanctuary. Here are the dangers of AI energy consumption

Not only are more businesses using generative AI, but the tech industry is in a race to develop new and more powerful tools that will mean compute demand is only going to grow—and power consumption with it, unless something can be done. 

The latest breakthrough from OpenAI, the company behind ChatGPT, is Sora. It can create super realistic or stylized clips of video footage up to 60 seconds in length purely based on user text prompts. 

The marvel of gen AI comes at a steep cost

“It takes 100,000 AI chips working at full compute capacity and full power consumption in order to train Sora,” Badani said. “That’s a huge amount.” 

Data centers, where most AI models are trained, currently account for 2% of global electricity consumption, according to Badani. But with generative AI expected to go mainstream, she predicts it could end up devouring a quarter of all power in the United States in 2030.

The solution to this conundrum is to develop semiconductor chips that are optimized to run on a minimum of energy.

That’s where Arm comes in: Its RISC processor designs currently run on 99% of all smartphones, as opposed to the rival x86 architecture developed by Intel. The latter has been a standard for desktop PCs, but proved too inefficient to run battery-powered handheld devices like smartphones and tablets. 

Arm is adopting that same design philosophy for AI.

“If you think about AI, it comes with a cost,” Badani said, “and that cost is unfortunately power.”  

Join us at the Fortune Workplace Innovation Summit May 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.
About the Author
Christiaan Hetzner
By Christiaan HetznerSenior Reporter
Instagram iconLinkedIn iconTwitter icon

Christiaan Hetzner is a former writer for Fortune, where he covered Europe’s changing business landscape.

See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

jensen huang
AINvidia
Jensen Huang just painted the most bold image of AI’s future: 7.5 million agents, 75,000 humans—100 AI workers for every person
By Jake AngeloMarch 19, 2026
1 hour ago
AIJobs
Fortune 500 firm updates AI price tag to $4.5 trillion, estimating 93% of jobs vulnerable to disruption
By Jake AngeloMarch 19, 2026
2 hours ago
woman holds phone in times square
CybersecurityVideo Games
Pokémon Go players built a 30-billion-photo map that’s now training robots to deliver your pizza
By Catherina GioinoMarch 19, 2026
2 hours ago
iran
Cybersecuritycyber
Every Fortune 500 CEO’s nightmare: the Iran war and the Pandora’s Box of AI cyber warfare
By Nick LichtenbergMarch 18, 2026
13 hours ago
Female sculptor using a digital tablet in her art studio
EconomySmall Business
Goldman Sachs says small businesses are embracing AI, but fewer than 1 in 5 are good at actually integrating it
By Tristan BoveMarch 18, 2026
14 hours ago
boy holding phone in front of his face
PoliticsSocial Media
Social media companies are scrambling to verify minors online. Congress just made it a lot more complicated
By Catherina GioinoMarch 18, 2026
14 hours ago

Most Popular

placeholder alt text
Personal Finance
Current price of silver as of Tuesday, March 17, 2026
By Joseph HostetlerMarch 17, 2026
2 days ago
placeholder alt text
Success
Only one couple out of 250 billionaires has kept their promise to give away their fortune—and a philanthropy CEO says Elon Musk is right about why
By Orianna Rosa RoyleMarch 18, 2026
1 day ago
placeholder alt text
Economy
McDonald's newest $3 value menu is sounding an alarm about America's K-shaped economy
By Marco Quiroz-GutierrezMarch 17, 2026
2 days ago
placeholder alt text
Economy
‘This is the way’: Elon Musk endorses Warren Buffett’s famed 5-minute plan to fix the national debt
By Jacqueline MunisMarch 17, 2026
2 days ago
placeholder alt text
Economy
‘100% completely unsustainable as a society.’ Billionaire advisor calls out widening inequality that leaves America’s poorest 80% ‘falling behind’
By Tristan BoveMarch 17, 2026
2 days ago
placeholder alt text
Commentary
The U.S. attacked Iran to show its power but the war is already lost. Epic Fury looks like an Epic Fail
By Guillaume LongMarch 18, 2026
18 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.