The AI rush is hitting a bottleneck
The demand for AI is outpacing the supply of computing power, with companies like Anthropic and OpenAI experiencing outages and throttling access to their tools. Hardware makers are failing to invest enough to keep up with demand, and the construction of data centers is facing growing political opposition.
The AI industry is facing a bottleneck due to a shortage of computing power. Companies like Anthropic and OpenAI are experiencing outages and throttling access to their tools. Demand is rising faster than capacity can be added, with the weekly tokens processed by OpenRouter quadrupling between January and March. Five hyperscalers are investing heavily in data centers, but hardware makers are failing to keep pace with demand. The construction of data centers is also facing growing political opposition in America and beyond. Legislators in multiple states are weighing measures to restrict data center construction, and $156bn-worth of projects were blocked or delayed last year.
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