Commonwealth Fusion Systems is collaborating with Google's DeepMind to enhance the operation of its Sparc fusion reactor using AI technology. By simulating plasma behavior with DeepMind's Torax software, they aim to tackle the challenges of maintaining fusion reactions, which could lead to a breakthrough in clean energy production. Google has previously worked with other fusion startups, indicating a strong interest in fusion power as a sustainable energy source.

Former Google CEO Eric Schmidt emphasizes that Canada's abundant hydroelectric power could be crucial for powering AI servers and maintaining a competitive edge in the global AI race, provided the country can navigate its trade relations with the US. He warns that the growing demand for energy poses a significant national issue, while also expressing concerns about the geopolitical tensions surrounding AI dominance.

Tech companies and startups are developing innovative microchips aimed at reducing the energy consumption of AI supercomputers. One such startup, Positron, has created chips that are more energy efficient for AI inference, potentially saving companies significant costs and energy as they seek alternatives to Nvidia's dominant products.

As demand for electricity surges due to the AI boom, tech companies are constructing their own power plants to bypass the slow U.S. power grid. Projects like OpenAI's Stargate in Texas and Elon Musk's data centers in Memphis highlight this trend, as firms seek quick fixes amid supply chain and permitting challenges.