“We’ll be producing more chips than we can turn on.”

Elon Musk said that on stage at the World Economic Forum in Davos this January.

Read it again, slowly.

The man behind Tesla, SpaceX, and xAI isn’t worried about making enough chips. He’s saying they’ll pile up faster than anyone can switch them on.

That’s not a chip problem. Here’s what he meant.

It isn’t a money problem either. Microsoft, Alphabet, Amazon, Meta, and Oracle have committed up to $690 billion to the AI buildout, according to Yahoo Finance.

So what’s left? The one thing every one of those chips needs, and the piece the nightly news keeps skipping while it chases the latest AI headline.

I wrote the whole story up in plain English. Start with the part the headlines skip.

Once you see it, that Davos line reads very differently.

Don Kaufman

P.S. That $690 billion is more than China, Russia, and Germany spend on their entire militaries, combined. A big chunk of it is about to run straight into what Musk was talking about. Find the catch