Altman Defends AI Resource Demands Amid Criticism
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 23 2026
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Should l Buy MSFT?
Source: Newsfilter
- Water Usage Defense: OpenAI CEO Altman stated at the India AI Impact summit that claims ChatGPT uses gallons of water per query are “completely untrue,” emphasizing that human energy consumption is also significant, indicating that AI's resource demands are not unique.
- Energy Consumption Warning: While acknowledging the rising overall energy consumption of AI, Altman urged a swift transition to nuclear and renewable energy to address future computing demands, reflecting a commitment to sustainable development.
- Human vs. AI Efficiency Comparison: Altman pointed out that the energy required to train AI models is comparable to that needed for human development, stressing that once trained, AI's efficiency in answering questions may have already caught up with humans, showcasing advancements in AI technology.
- Data Center Development Controversy: As governments and companies invest billions in new data centers, Altman and other tech leaders advocate for diverse energy sources to meet AI systems' computing needs while addressing local community concerns about grid pressure.
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Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 418.070
Low
500.00
Averages
631.36
High
678.00
Current: 418.070
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company. The Company develops and supports software, services, devices, and solutions. The Company’s segments include Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services. This segment primarily comprises: Office Commercial, Office Consumer, LinkedIn, and Dynamics business solutions. The Intelligent Cloud segment consists of server products and cloud services, including Azure and other cloud services, SQL Server, Windows Server, Visual Studio, System Center, and related Client Access Licenses (CALs), and Nuance and GitHub; and Enterprise Services, including enterprise support services, industry solutions and Nuance professional services. The More Personal Computing segment primarily comprises Windows, Devices, Gaming, and search and news advertising.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Surge in Energy Demand: Data center electricity demand is projected to double from approximately 448 TWh in 2025 to nearly 980 TWh by 2030, with AI-optimized servers accounting for 44%, indicating that the energy-intensive nature of AI training and inference is becoming a critical constraint in infrastructure planning.
- Infrastructure Bottlenecks: As energy demand surges, many electrical grids are struggling with outdated designs that cannot accommodate the continuous high loads of modern data centers, leading to project delays and constraints on technological progress, highlighting the urgent need for new energy solutions to alleviate these bottlenecks.
- Focus on Localized Generation: American Fusion is concentrating on localized, high-output energy generation, aiming to reduce reliance on centralized grids by providing dedicated power sources for high-demand applications like data centers, thereby addressing the growing energy needs effectively.
- From Innovation to Execution: As technologies mature, the industry is shifting from research-driven innovation to execution-focused development, with American Fusion reflecting this trend by emphasizing the construction of both technological capabilities and operational infrastructure, ensuring its critical role in future energy solutions.
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