How much energy and water does ChatGPT consume?
If you purchase an independently reviewed product or service through a link on our website, BGR may receive an affiliate commission.
Artificial intelligence has been the hottest topic in tech since late 2022, when ChatGPT went viral. The AI race started almost immediately, with every big tech company in the US and elsewhere working on new AI systems of their own.
We quickly learned that software like ChatGPT requires massive resources. Datacenters packing thousands of expensive GPUs specialized in training and running AI chatbots were needed. The larger the data centers, the more energy the world would need to set aside for AI projects.
Today's Top Deals
Best deals: Tech, laptops, TVs, and more sales
Best Ring Video Doorbell deals
Memorial Day security camera deals: Reolink's unbeatable sale has prices from $29.98
Some people worried about the impact AI infrastructure would have on the world. It wasn't just about the electricity powering the chats, but also the water used to cool some of these data centers.
Two and a half years after ChatGPT went viral, we finally know how much energy and power a ChatGPT chat consumes. It comes from Sam Altman's latest blog, titled The Gentle Singularity, which teases what the world could look like in the next five to ten years thanks to superintelligence:
People are often curious about how much energy a ChatGPT query uses; the average query uses about 0.34 watt-hours, about what an oven would use in a little over one second, or a high-efficiency lightbulb would use in a couple of minutes. It also uses about 0.000085 gallons of water; roughly one fifteenth of a teaspoon.
It's unclear where Altman's figure comes from. If accurate, I'll probably consume about a teaspoon of water with AI queries every day. But the figure is also misleading, considering that OpenAI has hundreds of millions of monthly users.
Add to that all the energy and water Gemini, Claude, Meta AI, Deep Research, and all the other chatbots out there consume, and you'll rack up quite a bill.
It's unclear what prompted the CEO to pen the post, one he describes on X as maybe 'the last one like this I write with no AI help at all.' It likely wasn't to reveal the energy costs associated with ChatGPT chats, though energy is one of the big topics in the blog. On that note, I'll point out that ChatGPT o3 just got dramatically cheaper than before.
Unsurprisingly, Altman is quite optimistic about the future of AI. He presents superintelligence as inevitable. It's a foregone conclusion. We'll get to a world where smarter-than-human AI will make our jobs easier than ever, leading to potential massive discoveries to improve daily lives:
AI will contribute to the world in many ways, but the gains to quality of life from AI driving faster scientific progress and increased productivity will be enormous; the future can be vastly better than the present. Scientific progress is the biggest driver of overall progress; it's hugely exciting to think about how much more we could have.
Altman expects AI to bring novel insights in 2026. A year after that, the world will start getting robots that can do tasks in the wild. Then, 'the 2030s are likely going to be wildly different from any time that has come before,' Altman writes. That's even though we, humans, will continue to enjoy our lives as we did before.
The OpenAI CEO also says that intelligence and energy will be 'wildly abundant' in the 2030s. Once that happens, the world will be able to do things that weren't possible before.
Speaking of energy, Altman also sees datacenter production becoming automated. AI and robots will power everything:
There are other self-reinforcing loops at play. The economic value creation has started a flywheel of compounding infrastructure buildout to run these increasingly-powerful AI systems. And robots that can build other robots (and in some sense, datacenters that can build other datacenters) aren't that far off.
AI will help humanity achieve new 'wonders' by 2035. Altman even sees a future where some people will choose to 'plug in' via 'true high-bandwidth brain-computer interfaces.'
It all sounds amazing, and it certainly beats the gloomier pictures others paint about the future of AI.
Altman's essay also downplays the downsides, like the massive job revolution we're about to witness. The CEO isn't ready to propose any solution for AI stealing jobs, other than indicating that humans will adapt and some sort of new social contract might emerge:
There will be very hard parts like whole classes of jobs going away, but on the other hand, the world will be getting so much richer so quickly that we'll be able to seriously entertain new policy ideas we never could before. We probably won't adopt a new social contract all at once, but when we look back in a few decades, the gradual changes will have amounted to something big.
Toward the end of the post, Altman also addresses the obvious challenges. AI has to be aligned to our interests to give us the rosy future he paints in the previous paragraphs. The other challenge is making sure superintelligence is 'cheap, widely available, and not too concentrated with any person, company, or country.'
How will OpenAI and every other firm engaged in developing frontier AI ensure it's safe, cheap, and widely available? Altman doesn't say. We'll just have to wait and see what happens next, while we continue to chat with chatbots like ChatGPT, a fifteenth of a teaspoon of water at a time.
Don't Miss: Today's deals: Nintendo Switch games, $5 smart plugs, $150 Vizio soundbar, $100 Beats Pill speaker, more
More Top Deals
Amazon gift card deals, offers & coupons 2025: Get $2,000+ free
See the
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
36 minutes ago
- Yahoo
Prediction: Soaring Palantir Stock Will Continue to Defy Analysts' Expectations Through 2026
Palantir's revenue and profits are soaring, but its valuation is out of hand. The company's AI platform is a must-have for government and commercial clients. Wall Street is divided on the stock, but I think the future is clear. 10 stocks we like better than Palantir Technologies › Is there a more compelling -- or polarizing -- stock on U.S. indexes right now than Palantir Technologies (NASDAQ: PLTR)? On the one hand, the company is showing ridiculous growth, sending shares up 85% so far in 2025 and 440% over the past 12 months. But the company, which is evolving from a government contractor to a powerhouse that uses artificial intelligence to help both government and commercial clients make real-time decisions, has a stock valuation that would make even the most stout-hearted investor wince. And there's emerging concern that some of Palantir's newest deals with the U.S. government are walking (or blurring) a line separating government needs and personal privacy. Analysts are all over the map when forecasting Palantir's future, but most of those tracked by Yahoo! Finance rate the stock a hold, and the group has an average price target of $101 as I write this, while the stock trades at about $140 per share. But I think Palantir is going to continue to outperform -- and confound -- Wall Street at least through 2026. Long-term investors should buckle in for the ride. Palantir delivered its first-quarter 2025 earnings report in early May. Revenue grew 39% year over year, with U.S. commercial sales up 71% and U.S. government sales up 45%. That's along with a 39% increase in total customer count year over year, and an 8% quarter-to-quarter gain. The company is landing huge deals, too, including 139 deals in Q1 worth more than $1 million, 51 deals worth more than $5 million, and 31 deals worth more than $10 million. The stock's market capitalization, which was just $56.4 billion a year ago, is now $331 billion. While Palantir is best known for its military and intelligence use cases (the company first rose to public prominence in its role helping the government find and kill Osama bin Laden), it's got its fingers in plenty of other pies, including healthcare, factory modernization, and helping financial institutions make real-time, AI-powered decisions. Palantir recently announced partnerships with Italian paper manufacturer Fedrigoni, healthcare organization The Joint Commission, Elon Musk's xAI, and investment firm TWG Global, as well as six industrial firms. All of this shows Palantir's commercial business is just getting started. Any conversation about Palantir's valuation has to start with those gaudy price-to-earnings numbers. The forward P/E based on estimated earnings is 256, and the trailing P/E is an outrageous 600. Wall Street's consensus price target for PLTR is $101, with a high of $155. One analyst has a price target of $40. That reflects how wildly divided analysts are on what Palantir's true value is. But if you can't stop thinking about the P/E, keep this in mind: Amazon (NASDAQ: AMZN) had a P/E in 2013 of over 1,000 with a market cap of only $120 billion. It was primarily known as an e-commerce company as its Amazon Web Services was only 7 years old. But AWS has since helped Amazon revolutionize cloud computing, allowing companies to rent computing power instead of investing in expensive data centers. It created a new revenue stream for Amazon and forever changed the company's business model. Today, AWS provides billions in annual revenue and provides Amazon a key role in the future of technology. That's a major reason why Amazon's market cap exploded to reach more than $2 trillion today -- the market finally recognized its true value. So, sometimes great companies trade at incredible valuations before the world understands their real potential. And I think that's where we are with Palantir. As the world gets more complicated -- war in Ukraine and the Middle East, tensions between Washington and Beijing, and the massive changes happening in the U.S. government -- Palantir's government contracts are just going to grow. The demand for AI-driven intelligence tools is rising. Not everyone is comfortable with that. There are published reports that Palantir is expanding its role with the Pentagon, the Department of Homeland Security, and the Department of Health and Human Services. And it's also reportedly talking to the Internal Revenue Service and the Social Security Administration. The fear is that the government will be able to use Palantir's Foundry platform to create a massive government database that keeps track of data like individual bank account numbers, debt, citizenship or immigration status, and medical information. I'm not going to make a value judgment about Palantir, although it's important to acknowledge the elephant in the room. From an investment perspective, though, I'm taking notice about what these developments say about the power and reach of Palantir's software. Palantir helps its customers anticipate threats, track assets, manage resources, and make split-second decisions. The more unpredictable the world becomes, the more essential Palantir's technology becomes, and this will make it more appealing to investors. There's no easy call to make on Palantir stock. On the one hand, revenue and profits are growing, and the software is both unique and necessary. But on the other hand, Palantir's valuation is absurd and the privacy debate won't go away soon. It's no wonder that analysts are all over the place. Here's where I land: Palantir is a future-defining force in AI, doing amazing work not only with the military and the government but also in industries that people use every day. The company beat expectations in 2024 and it's killing it in 2025. I see that continuing throughout the rest of the year and into 2026, even if Wall Street's not on board. Palantir will prove its skeptics wrong. Before you buy stock in Palantir Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Palantir Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor's total average return is 995% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Patrick Sanders has no positions in any of the stocks mentioned. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Amazon and Palantir Technologies. The Motley Fool has a disclosure policy. Prediction: Soaring Palantir Stock Will Continue to Defy Analysts' Expectations Through 2026 was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
an hour ago
- Yahoo
Is OpenAI's Deal With Alphabet a Game Changer?
For the last couple of years, OpenAI has relied heavily on Microsoft to supply compute power through the Azure cloud platform. Recently, OpenAI has been exploring new cloud partnerships with Oracle and now Google in an effort to migrate away from Microsoft. Teaming up with OpenAI could be a transformative move for Alphabet as its core search business continues to face pressure. 10 stocks we like better than Alphabet › For more than two years now, ChatGPT developer OpenAI has been at the center of the artificial intelligence (AI) revolution. The company has raised billions in funding from Microsoft, works closely with leading AI-focused cloud providers such as CoreWeave, and is among the key players pushing a $500 billion domestic AI infrastructure initiative called Project Stargate. Recently, OpenAI found itself in the headlines yet again following news of a major partnership with Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). Let's explore how OpenAI and Alphabet are teaming up, and assess why this deal could be a game changer. Microsoft's investment in OpenAI wasn't just about raising capital. As part of their partnership, OpenAI became tightly integrated into Microsoft's cloud service, Azure. While Azure's infrastructure has been key to OpenAI maintaining explosive growth over the last two years, recent moves from the ChatGPT maker suggest it's looking to avoid vendor lock-in with Microsoft. For instance, as part of Project Stargate, Oracle is reportedly exploring purchasing several billion dollars worth of Nvidia's newest Blackwell GPU architecture and leasing access to these chips to OpenAI. According to recent reporting, OpenAI's partnership with Alphabet revolves around the same use case as the Oracle deal: accessing compute power through the Google Cloud Platform. As data workloads continue to rise, training and inferencing AI models becomes increasingly sophisticated and costly. Hence, broadening its cloud compute infrastructure beyond Azure is critical for OpenAI. While cloud computing has emerged as a fast-growing business for Alphabet, Google Cloud operates at a much smaller scale than Microsoft Azure and Amazon Web Services (AWS). That said, working with OpenAI may look odd from the outside as the platform could be seen as both a technical competitor and existential threat to Google's search business and AI efforts. However, I think there is a more interesting aspect to this relationship whereby Alphabet is hedging the economic profiles of its various platforms. Since ChatGPT emerged, skeptics have been sounding the alarm on Alphabet's internet search business (Google). The bear narrative is that inputting a query into a chatbot such as ChatGPT and receiving a detailed response instantly will turn people away from the traditional search process of Googling something. Although Alphabet continues to own significant surface area on the internet thanks to properties such as Google and YouTube, some search trends are beginning to indicate that ChatGPT and other large language models may be encroaching on Google's dominance. In turn, Alphabet's search advertising empire may be about to crack. While the exact details about OpenAI and Google Cloud's relationship are under tight wraps, I have some ideas as to why this deal could actually make a lot of strategic sense for Alphabet. In a scenario where OpenAI and its peers begin to erode Google search -- thereby taking a toll on Alphabet's advertising revenue -- Alphabet is still able to capture some downstream monetization. What I mean by that is Alphabet's cloud infrastructure business captures revenue that is otherwise lost from the consumer-facing advertising segment of Google search. In turn, this new stream of cloud revenue can help tighten the gap with AWS and Azure. In addition, a far more lucrative opportunity for Alphabet could be to hone Google's own AI capabilities by gaining visibility into OpenAI's workloads. Granted, this last point may be wishful thinking for the time being, as it's not entirely known what Alphabet will be privy to with regards to accessing OpenAI's data flow. In the chart below, investors can see that Alphabet trades at a considerable discount compared to its cloud hyperscaler peers on a forward earnings basis. The valuation disparity between Alphabet and its cohorts could suggest an overly bearish narrative, rooted in two primary areas. First, some investors may be of the opinion that Alphabet entered the cloud computing race far too late and will never catch up to Amazon or Microsoft. Second, the rise of OpenAI has been labeled an existential threat to Google for years now -- and I think Alphabet's steep discount relative to its peers is pricing in such a narrative. As I outlined above, though, the irony from Alphabet's deal with OpenAI is that the company might actually have unlocked a backdoor channel to continue thriving even as its core search business faces mounting pressure. To me, the deal with OpenAI is a transformative game changer for Alphabet in the long run and I see the stock as a no-brainer buy right now. Before you buy stock in Alphabet, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Alphabet wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!* Now, it's worth noting Stock Advisor's total average return is 994% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Adam Spatacco has positions in Alphabet, Amazon, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Microsoft, Nvidia, and Oracle. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Is OpenAI's Deal With Alphabet a Game Changer? was originally published by The Motley Fool
Yahoo
2 hours ago
- Yahoo
These 2 AI Stocks Give You Access to China's ‘New AI Tiger' MiniMax
Chinese AI startup MiniMax is emerging as a formidable competitor to DeepSeek, having recently launched breakthrough products, including the M1 reasoning model, which uses less than half the computing power of DeepSeek-R1. The Shanghai-based company, valued at $2.5 billion in its March 2024 funding round, is preparing for a Hong Kong initial public offering (IPO) as early as this year. MiniMax represents one of China's 'four new AI tigers' competing against Western giants, such as OpenAI. The company's latest innovations include the Hailuo 02 video generator and MiniMax Agent, which indicate it is poised to gain traction in the generative AI space. Dear Tesla Stock Fans, Mark Your Calendars for June 30 The 'Golden Era' for Tesla Starts June 22. Should You Buy TSLA Stock First? Nvidia Is Quickly Approaching a New Record High. Is It Too Late to Buy NVDA Stock? Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. Investors can gain exposure to MiniMax through two major stakeholders: Alibaba (BABA) and Tencent (TCEHY), both of which are strategic investors in the startup. This provides retail investors with indirect access to one of China's most promising AI companies, without requiring them to wait for the IPO. However, industry experts warn that these so-called AI tigers face sustainability challenges, with most still burning cash while seeking viable profit models beyond free trials and limited enterprise customization. Valued at a market capitalization of $593 billion, Tencent is one of the largest companies in China. In Q1, it reported revenue of $25.1 billion, a 13% year-over-year increase, while net income grew 22% to $8.5 billion. The technology giant's gross profit exceeded $14 billion for the first time, demonstrating strong operational leverage across its diversified business portfolio. Tencent's strategic AI investments are already generating tangible returns across multiple segments. Marketing services revenue accelerated 20% year-over-year, benefiting from AI-powered advertising improvements that enhanced click-through rates from historical 1% levels to 3% in certain inventories. Domestic Games achieved exceptional 24% growth, with flagship titles like Honor of Kings and Peacekeeper Elite reaching record quarterly revenues, supported by AI-enhanced user engagement and content optimization. Tencent's Weixin ecosystem, serving 1.4 billion monthly active users, is becoming the centerpiece of its AI strategy. The tech giant has integrated the Yuanbao AI assistant directly into Weixin chats, enabling context-aware responses and content discovery. Weixin Search now incorporates large language model results, while AI-powered tools help content creators generate images and video effects, significantly reducing the time required for Mini Program development. The gaming portfolio demonstrated remarkable strength, with Delta Force achieving 12 million peak daily active users and becoming the highest-ranked new mobile game released in China over the past three years. International games grew 23% year-over-year, driven by titles including PUBG Mobile and Brawl Stars. Management emphasized that current AI investments represent a long-term value creation strategy, with CEO Pony Ma noting that while near-term costs may temporarily narrow operating leverage, these investments will generate 'substantial incremental returns' over the longer term. Tencent increased capital expenditures by 91% year-over-year to $3.8 billion, primarily for investments in GPUs and servers to enhance its AI capabilities. Out of the 16 analysts covering Tencent stock, 13 recommend 'Strong Buy,' two recommend 'Moderate Buy,' and one recommends 'Hold.' The average target price for Tencent stock is $90, roughly 41% above the current price of $64. In fiscal Q4 2025 (ended in March), Alibaba grew its sales by 7% year over year to $32.6 billion. A focus on operational efficiency allowed the e-commerce giant to increase adjusted EBITDA by 36% to $4.6 billion. Alibaba's AI and cloud computing initiatives are driving momentum. Alibaba Cloud achieved accelerated 18% revenue growth, powered by sustained triple-digit growth in AI-related products for the seventh consecutive quarter. Management highlighted the expansion of AI adoption beyond large enterprises to small and medium-sized businesses, with new customers migrating from traditional offline infrastructure to cloud-based AI services across various sectors, including manufacturing, financial services, and even animal farming. E-commerce operations showed strong user engagement, with Taobao and Tmall Group's customer management revenue growing 12% year-over-year, driven by improved monetization through the Quanzhantui advertising platform and new software service fees. The platform's premium 88VIP membership exceeded 50 million users, demonstrating growing customer loyalty and spending power. International expansion accelerated through Alibaba International Digital Commerce (AIDC), which achieved 22% revenue growth driven by robust cross-border business performance. It remains on track to achieve quarterly profitability in its international e-commerce operations. Alibaba strengthened its balance sheet by divesting non-core assets, generating $2.6 billion in cash proceeds. The company returned $16.5 billion to shareholders through $11.9 billion in share repurchases and $4.6 billion in dividends, including a 5% increase in annual dividends. With a strong $50.5 billion net cash position, Alibaba is well-positioned to capitalize on AI opportunities while maintaining its commitment to shareholder returns. Out of the 20 analysts covering BABA stock, 19 recommend 'Strong Buy' and one recommends 'Moderate Buy.' The average target price for BABA stock is $162, 44% above the current price. On the date of publication, Aditya Raghunath did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on