"Taiwan relied on imports to meet 95 percent of its energy needs in 2025, including over 99 percent of its demand for oil and natural gas."
"Nvidia builds the GPU, but we also build the CPU, the networking, the switches, and so there are a lot of chips associated with Blackwell."
"For at least the last two years, the enemy of AI's growth has been the ability to build AI data centers, due to construction constraints, energy availability, and the challenges of locating large electricity-generating facilities."
"Tech companies that believe AI is their future bemoan that Chinese competition has access to almost limitless electricity."
Nvidia's chips, including Blackwell, are primarily produced by TSMC in Taiwan, which relies heavily on imported energy. Nvidia maintains a 70% gross margin, but supply issues could impact the AI industry and its stock price. CEO Jensen Huang emphasized the critical relationship with TSMC for Nvidia's success. Data center construction faces challenges like energy availability and water use, hindering AI growth in the U.S. In contrast, Chinese competitors benefit from abundant electricity and have their own chip production capabilities, although not as advanced as Blackwell.
Read at 24/7 Wall St.
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