AsianFin—The doomsayers hype for panic over artificial intelligence (AI)'s high energy use have gone a little overboard, according to Microsoft founder Bill Gates. While the energy demand for AI systems are substantial, Gates argues that the benefits and efficiencies AI brings can outweigh these concerns.

AI technologies, especially large language models and machine learning systems, require significant computational power and energy. However, the multi-billionaire entrepreneur emphasizes that these technologies also have the potentials to drive efficiencies and innovations across various sectors, including energy.

The valuation of AI-related companies is not as outrageous as it was during the Internet bubble, and the economic growth it has spawned is real. AI is not just a super tuning tool, it will bring about changes in basic science, he said.

According to Gates, data centers will indeed drive a rise in global electricity usage by between 2% and 6%. "The question is, will AI accelerate a more than 6-percent reduction? And the answer is: certainly," Gates said.