Elon Musk warns the U.S. could soon be producing more chips than we can turn on. And China doesn’t have the same issue

Elon Musk warned the biggest issue hampering AI advancement in the United States is a problem Chinese competitors don’t have.

In a conversation in Davos, Switzerland, with BlackRock CEO and World Economic Forum interim chair Larry Fink, Musk said AI chip production is increasing exponentially, but electrical power is insufficient, hampering the efficiency of AI data centers in training and deploying AI models.

“I think the limiting factor for AI deployment is fundamentally electrical power,” Musk said.