K.R. Sridhar

The second thing is AI definitely accelerates our business.

But our business was growing at 40% a year with us being a profitable company by providing on-site power.

Similar to if you just take a very large load like the AI loads, half a gigawatt gigawatts,

Even if you can make it work, it's probably the most inefficient, worst way for you to be powering the data center, even if you can make it work.

The reason is you're generating the power very far away.

You know exactly where it's needed.

Why are you using copper wires and transmitting all that power and losing power along the way?

Second thing, you're converting a molecule to electricity.

You generate some amount of heat.

If that heat is right next to the point of use, like a data center, you can use that heat for cooling, and the data centers require a lot of cooling.

Instead here, you waste that heat, and then you use more electricity to do the cooling.

Number three, the large power plants on the grid provide AC power.

Alternating current is what that's called.

Our chips use direct current or DC power at low voltage.

We natively produce DC power at 800 volts to be able to supply directly to the racks.

And this is where the future is.

As long as you depend on a pole and wire, you're going to use backups.

Because the pole and the wire is going to fail.

That's called a power outage, right?

You're going to have that all the time.