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Nvidia Highlights AI’s New Energy Bottleneck
Nvidia (NASDAQ: NVDA) has entered a $100 billion agreement with OpenAI, indicating that the primary challenge in AI development is now electricity consumption, which accounts for 4% of U.S. power usage. Each gigawatt of computing capacity mirrors the power usage of a nuclear reactor, emphasizing the need for optimized energy sources for AI infrastructure.
Iren Ltd. Transitions to AI Infrastructure
Iren Ltd. (NASDAQ: IREN) has shifted from Bitcoin mining to focusing on high-performance computing for AI, reporting a 226% revenue increase year-over-year to $187 million in Q4 fiscal 2025. The company’s dual exposure to crypto and AI markets, along with its status as a preferred Nvidia partner, positions it favorably; however, it faces risks if customer demand doesn’t match capacity.
Infrastructure Innovations from Applied Digital and Poet Technologies
Applied Digital (NASDAQ: APLD) is developing AI-optimized data centers with a planned capacity of 1 gigawatt, while Poet Technologies (NASDAQ: POET) targets data movement energy costs with its optical interposer platform. As both companies face high valuations and execution risks, their performances will depend on delivering timely infrastructure solutions amid increasing AI energy demands.
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