Go America. Team America.com.
Yes indeed. So America, right brothers? First man on the moon. The internet.
The two of us. Wright brothers.
I like that. Indeed. We've essentially led every major technological revolution which has been to the enormous benefit of America, ordinary Americans. We're I guess we're now calling this super intelligence, which I think is actually good branding. And so let's talk about how America wins this and we make that winning good for ordinary Americans.
Well, excuse me, Diet Coke. Sorry. So first of all, artificial super intelligence, super intelligence is a complete reinvention of the computing stack. Everything from the way the processors, the chips are designed and the way they operate to the way software is now trained and developed to the way that the applications are able to perform what they're able to do and how they perform. Every single layer of the computing stack has been reinvented. This way of doing computing, unlike previous ways of retrieving information, this is a generative approach to computing and therefore in order for us to succeed the first thing we need is energy because we need the energies to run the compute. The compute runs the algorithms. The algorithms then feed the applications. And so at the foundational layer is energy and from that energy we build the land power and shell and that host the infrastructure so on so forth. And so the way we win, of course we are world class in chip design. We're world class in algorithm development. And so one of the things that we need to do is just be vigilant about enabling power delivery and power generation to happen. And President Trump has been visionary in being pro-energy. Without the pro-energy vision of President Trump, it would have been impossible for us to build the data centers on top of it. Now, of course, these data centers are coming online so quickly. We're coming into a lot of neighborhoods and a lot of communities. We have to do a better job in partnering with the communities and to make and bring them along and make them part of the prosperity and the success of this industrial revolution. But you know, that's how we win. You know, we got to build the world's best chips. We got to build it. We have to have lots and lots of energy. Create incredible algorithms. And then lastly, make sure that America is enthusiastic about the technology so that we diffuse it into all of these various industries from manufacturing to healthcare, you know, space exploration, so on so forth.
Awesome. Elon, how do we win? How do we keep winning?
Well, we need a lot of power, a lot of energy generation. So, scaling energy, I think, is one of the biggest things. You've got to scale energy, you've got to scale chip production. And I think we're winning on software on anything intellectual or digital. But in the long run we need to be able to generate enough power to compete with, I think essentially China is the biggest competitor and China has about three times the electricity production of the United States. And I think we'll figure out how to make chips. So the really the central challenge I think is long term is going to be how do you generate enough power and how do you ensure that we have enough logic and memory fabrication capacity in the United States or in a safe region?
Well, you are, we need the Wright brothers on the job.
Yes. Well, it turns out the Wright brothers are on the job. Elon, if you bring on 10 gigawatts, which SpaceX has discussed publicly, that'll be about 25% of all the power added in America. And I know you have literal rocket engineers working on bringing on the power.
Helping make the turbines. So can you talk about that?
Yeah, it's I mean just to frame this, the average power consumption in the United States is about 500 gigawatts. So every 5 gigawatts of incremental steady state production is a 1% increase in the power used and I think actually will materialize to be approximately 1% increase in GDP because the intelligence for what keeps increasing. So if you just plot on a curve how is the useful intelligence per watt increasing, how is both at the hardware level at Jensen's GPUs keep getting better in terms of their compute per watt and the algorithms also get better in using and getting more intelligence per watt. So I think that's a maybe an interesting note. I would bet anyone that 1% increase in power usage corresponds to roughly 1% increase in GDP and so 10 gigawatts will be a 2% increase in GDP with the Reuben I think.
Well let's do the simple math. So each gigawatt can probably generate about call it 40-50 billion dollars of economic output each year.
Yeah, I mean 1% would be, yeah, I mean 1% of the United States would be 300 billion.
Yeah. 300 billion. And so 5 gigawatts would be, yeah. Well 5 gigawatts would be 300 billion. Yeah. Exactly. 60 billion a gigawatt. Yeah. That's right.
That's what we're good at.
So that's quite not good at too many other things but math.
Um yeah. I mean, it's going to increase quite dramatically year-over-year. So, yeah. I mean, and from a SpaceX standpoint, we're looking at long-term, how do we access a lot more energy than could be accessed on the ground and that's with space. So, orbital compute is going to be a very big deal. In fact, and Google agrees. They just actually sent up or are either about to or soon about to send up some TPUs. I think there was an H100 that was put into orbit like last year, I think.
So it does work in space and SpaceX is aiming together with Tesla to do 200 gigawatts of solar production per year. And if brought to space that you get the name plate or better on the solar power whereas if it's on the ground you're going to get somewhere between a fifth and an eighth of the solar power generation and you need enormous batteries. So whereas it's essentially always sunny in space. So and right now is a great time to do it because the economic returns of these computing systems are so good that the launch cost although is still quite high in terms of the overall economic benefit is quite affordable.
Absolutely. This is the perfect time to do it.
Putting Nvidia computing in space is the best way to get there.
Yeah. Climbing the card of scale with American power and American chips on American rockets. I love it.
Yeah. So Jensen, you said something that I thought was important about how when we bring the energy to all these small towns, we're reindustrializing America. We're revitalizing small towns. We're modernizing the grid. These are things that essentially every American politician has wanted for the last 35 years. What would you say? What are some specifics you can give about how data centers are good for ordinary Americans in the communities and how they're getting better for those communities?
Yeah, we used to call them data centers. We call them data centers because that's where we hold data. But the things that we're building now, these are really SI factories, super intelligence factories. And the reason why it's a factory is because you're producing something of economic value. You're just not storing it. And so these SI factories are real factories. It's like a big giant power generator and real factories. It's got a lot of computing in there, networking in there, power generation, cooling systems. It's complicated things. And so we're building out just as the internet today allows you to find anything anywhere in the future with these AI, excuse me, SI infrastructure, SI factories, you'll be able to know anything and do anything from anywhere. And so now we're building this infrastructure out and call it across all of the United States somewhere between 10-20 gigawatts a year. Let's just estimate that creates probably about a million jobs in building out these data centers. Don't forget you've got to build the power generation plants. You got to build the data centers. You've got construction. You've got power cooling. You've got pipe fitters. And so this is the first time in probably as you mentioned 35, I was going to say 50 years, first time in 50 years we are re-industrializing the United States creating a whole bunch of blue collar jobs and I think we want an economy that has a shape that includes white collar jobs and blue collar jobs not just white collar jobs. And so I think that this is our great chance of reshaping our economy and bringing that type of builders and craft back into the United States.
Absolutely. And it feels like what Colossus and Macro Hard and Macro Harder have done have been amazing for the communities around them, the jobs they've created. How do you think about that?
Yeah, the economic impact, positive economic impact has been tremendous. I mean we there's actually a job shortage in the region and whereas there used to be quite a bit of unemployment and now it's there's overemployment if you will, there's more jobs than there are people and the tax benefits for the community have been tremendous. I think we might have doubled their tax budget or something quite tremendous. Then we do like small things that are helpful like provide low price, half price Starlink access. We're building a water recycling plant that's a $250 million water recycling plant. I think you do need to do things for the community. And if you do so they will reciprocate.
