Strait of Hormuz Blockage & Rising Oil/Electricity Costs

#Who Controls the Spice Controls the Universe

The Strait of Hurmuz is still closed — this affects many sectors including fertilizers, aluminum, and of course oil prices, which directly affects electricity — and as a second or third order it affects AI as well. GPU fabs are energy hungry, and the rationing of oil might slow down the AI expansion. Also, training and inference costs might go higher. On the bright side, this will push to accelerate renewable energy. Singapore, Indonesia, and Vietnam have 20–40 days of gas.

Sources: tweet, electricity