Nathan Lambert

You 10x the compute, you don't get 10x better model, right? You get a diminishing returns, but also you get efficiency improvements. So you bend the curve, right? And these scale of data centers are wreaking a lot of havoc on the network. Nathan was mentioning Amazon has tried to buy this nuclear power plant, Talon. And if you look at Talon's stock, it's just skyrocketing.

You 10x the compute, you don't get 10x better model, right? You get a diminishing returns, but also you get efficiency improvements. So you bend the curve, right? And these scale of data centers are wreaking a lot of havoc on the network. Nathan was mentioning Amazon has tried to buy this nuclear power plant, Talon. And if you look at Talon's stock, it's just skyrocketing.

You 10x the compute, you don't get 10x better model, right? You get a diminishing returns, but also you get efficiency improvements. So you bend the curve, right? And these scale of data centers are wreaking a lot of havoc on the network. Nathan was mentioning Amazon has tried to buy this nuclear power plant, Talon. And if you look at Talon's stock, it's just skyrocketing.

And they're building a massive multi-gigawatt data center there. And you just go down the list. There's so many ramifications. Interesting thing is certain regions of the US, transmitting power costs more than actually generating it.

And they're building a massive multi-gigawatt data center there. And you just go down the list. There's so many ramifications. Interesting thing is certain regions of the US, transmitting power costs more than actually generating it.

And they're building a massive multi-gigawatt data center there. And you just go down the list. There's so many ramifications. Interesting thing is certain regions of the US, transmitting power costs more than actually generating it.

Because the grid is so slow to build and the demand for power and the ability to build power and re-ramping on a natural gas plant or even a coal plant is easy enough to do. But transmitting the power is really hard. So in some parts of the US, like in Virginia, it costs more to transmit power than it costs to generate it. There's all sorts of second order effects that are insane here.

Because the grid is so slow to build and the demand for power and the ability to build power and re-ramping on a natural gas plant or even a coal plant is easy enough to do. But transmitting the power is really hard. So in some parts of the US, like in Virginia, it costs more to transmit power than it costs to generate it. There's all sorts of second order effects that are insane here.

Because the grid is so slow to build and the demand for power and the ability to build power and re-ramping on a natural gas plant or even a coal plant is easy enough to do. But transmitting the power is really hard. So in some parts of the US, like in Virginia, it costs more to transmit power than it costs to generate it. There's all sorts of second order effects that are insane here.

You know, Trump's executive orders, there was a Biden executive order before the end of the year, but then Trump had some more executive orders, which hopefully reduced the regulations to where, yes, things can be built. But yeah, this is a big, big challenge, right? Is building enough power fast enough?

You know, Trump's executive orders, there was a Biden executive order before the end of the year, but then Trump had some more executive orders, which hopefully reduced the regulations to where, yes, things can be built. But yeah, this is a big, big challenge, right? Is building enough power fast enough?

You know, Trump's executive orders, there was a Biden executive order before the end of the year, but then Trump had some more executive orders, which hopefully reduced the regulations to where, yes, things can be built. But yeah, this is a big, big challenge, right? Is building enough power fast enough?

So the fun thing here is this is too slow. To build the power plant. To build a power plant or to reconfigure an existing power plant is too slow. And so therefore you must use natural, data center power consumption is flat, right? You know, I mean, like it's spiky, right?

So the fun thing here is this is too slow. To build the power plant. To build a power plant or to reconfigure an existing power plant is too slow. And so therefore you must use natural, data center power consumption is flat, right? You know, I mean, like it's spiky, right?

So the fun thing here is this is too slow. To build the power plant. To build a power plant or to reconfigure an existing power plant is too slow. And so therefore you must use natural, data center power consumption is flat, right? You know, I mean, like it's spiky, right?

Because data center power is like this, right? You're telling me I'm going to buy tens of billions of dollars of GPUs and idle them because the power is not being generated? Power is cheap, right? If you look at the cost of a cluster, less than 20% of it is power, right? Most of it is the capital cost and depreciation of the GPUs, right? And so it's like, well, screw it.

Because data center power is like this, right? You're telling me I'm going to buy tens of billions of dollars of GPUs and idle them because the power is not being generated? Power is cheap, right? If you look at the cost of a cluster, less than 20% of it is power, right? Most of it is the capital cost and depreciation of the GPUs, right? And so it's like, well, screw it.

Because data center power is like this, right? You're telling me I'm going to buy tens of billions of dollars of GPUs and idle them because the power is not being generated? Power is cheap, right? If you look at the cost of a cluster, less than 20% of it is power, right? Most of it is the capital cost and depreciation of the GPUs, right? And so it's like, well, screw it.

I'll just build natural gas plants. This is what Meta is doing in Louisiana. This is what OpenAI is doing in Texas and all these different places. They may not be doing it directly, but they are partnered with someone. And so There is a couple hopes, right? One is, Elon, what he's doing in Memphis is to the extreme. They're not just using dual combine cycle gas, which is super efficient.

I'll just build natural gas plants. This is what Meta is doing in Louisiana. This is what OpenAI is doing in Texas and all these different places. They may not be doing it directly, but they are partnered with someone. And so There is a couple hopes, right? One is, Elon, what he's doing in Memphis is to the extreme. They're not just using dual combine cycle gas, which is super efficient.