Musk claims that AI will face power problems next year, and China's electricity infrastructure far exceeds that of the United States.

Musk said in an interview on Tuesday that his AI startup company xAI is planning to build a gigawatt-scale facility in Memphis, Tennessee, which will be completed in 6 to 9 months. Musk said that when scaling up artificial intelligence, there are three major constraints: chips, transformers, and power generation. "When we solve the transformer shortage problem, there will be a fundamental shortage of power generation," Musk said. "My guess is that people may start facing power generation challenges in the middle or end of next year." Musk said that China's power generation capacity far exceeds that of the United States. "China's power generation capacity looks like a rocket entering orbit, while the United States' power generation capacity is very flat," he said.