"The countries that control compute will control AI. And you cannot have compute without energy."

In a recent, wide-ranging conversation on The 20VC Podcast with Harry Stebbings, Grok Founder & CEO Jonathan Ross delivered a stark analysis of the AI landscape. The discussion covered the geopolitical battle for compute, the coming energy crisis, and why the insatiable demand for AI processing power means we are dramatically underestimating the scale of the revolution ahead.

Compute Demand is Insatiable and Unprecedented

Ross began by framing the current AI buildout not as a bubble, but as a strategic necessity for the world’s largest companies. The central driver is a demand for compute that has no historical parallel. “I would wager that if OpenAI were given twice the inference compute that they have today… within one month from now, their revenue would almost double,” he stated. This is because AI quality is not fixed; it improves directly with the amount of compute applied. “I can actually spend more to make my product better on each query,” Ross explained. This dynamic creates a virtuous cycle where more compute leads to better products, which in turn drives more demand.

The Geopolitics of AI: Energy is Power

The most forceful part of the conversation centered on the unbreakable link between AI supremacy, compute, and energy. “The countries that control compute will control AI. And you cannot have compute without energy,” Ross declared. He issued a blunt warning to Europe, arguing its focus on regulation over infrastructure is a critical mistake. Without a massive, coordinated effort to build out energy capacity—whether renewable or nuclear—he fears the continent’s relevance will fade. “If that does not happen in the speed with which it needs to be done, then Europe’s economy is going to be a tourist economy. People are going to come here to see the quaint old buildings and that’s going to be it.”

The Future of the Chip Market

While acknowledging the immense challenge of competing with Nvidia, Ross predicted a market shift. He believes that while Nvidia’s dominance will continue, its market share will change in nature. “I personally would be surprised if in 5 years Nvidia wasn’t worth 10 trillion,” he said, but added a crucial caveat: “My prediction is that in 5 years, Nvidia will still have over 50% of the revenue. However, they will have a minority of the chips sold.” The motivation for hyperscalers to build their own silicon isn’t just about cost, but control. “By building your own chip, what you really get isn’t your own chip. It’s that you get control over your own destiny.”

A Counter-Narrative: AI Will Cause Labor Shortages

Contrary to common fears of mass unemployment, Ross argued that AI’s true economic impact will be the opposite. “I believe that AI is going to cause massive labor shortages,” he said. He outlined a future defined by three trends:

1. Massive deflationary pressure, as AI makes everything from coffee to housing cheaper.
2. People opting out of the workforce, choosing to work less as their quality of life improves.
3. The creation of entirely new industries and jobs that we cannot yet imagine.

Ross concluded with a philosophical perspective, comparing the advent of AI to Galileo’s telescope. “LLMs are the telescope of the mind,” he mused. “Right now they’re making us feel really, really small. But in a hundred years, we’re going to realize that intelligence is more vast than we could have ever imagined and we’re going to think that’s beautiful.”