The Chaordic ‘Chips War’: How AI’s Energy Crisis Will Reshape Global Law, Policy and Your Business
In the contemporary artificial intelligence (AI) landscape, rapid technological advancement introduces novel and complex risks. The breakneck pace of innovation has outstripped the capacity for governance, giving rise to critical challenges in semiconductor supply chains, unsustainable energy consumption, and significant regulatory gaps. The explosive growth of AI is precipitating a silent yet profound energy crisis. As the technology proliferates at an astronomical rate, the immense computational horsepower required to train and operate large-scale AI systems is placing unsustainable demands on global power grids, natural resources, and geopolitical stability. This paper contends that these pressures represent more than a mere technical impediment; they constitute a central battleground that will redefine policy and commerce.
The analysis focuses on three critical domains: global law and policy, business and economics, and environmental sustainability. The principal contribution of this work is its exploration of emergent issues, including the weaponization of trade, the divergence between energy-advantaged and energy-constrained entities, associated geopolitical tensions, the AI sector’s escalating carbon footprint, and the resulting regulatory flashpoints. By examining the necessity for legal and governance systems to evolve in response, this paper concludes that addressing this convergence of challenges—termed here as the “Chips War”—demands an urgent and multidisciplinary response.
Keywords: Artificial intelligence, chips, energy, climate
