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Microsoft CEO Satya Nadella says the AI industry is no longer facing a GPU shortage. The new problem is power. He explained that Microsoft now has chips in inventory that cannot be used because data centers do not have enough electricity to run them.
Nadella spoke about the issue on the BG2 podcast with OpenAI CEO Sam Altman. He said the company is not limited by chip supply but by the number of “warm shells,” or powered data centers connected to the local grid. Local grid limits, planning delays, and power delivery challenges are slowing AI projects even when the hardware is ready.
The growing power demand from AI data centers is driving companies to secure long-term energy deals and explore on-site power options. Some are looking at small modular nuclear reactors to keep future clusters operating. Nadella said the next stage of AI growth depends on having enough reliable and scalable power.
