TL;DR 1Sep25 ... (1) AI super PACs, (2) Nvidia Predicts Cooler Growth After Sales Record, and (3) Data centers will cause higher electricity prices

Last update: Monday 9/1/25

Welcome to our 1Sep25 TL;DR summaries by ChatGPT of the past week's top 3 stories on our "Useful AI News" page ➡  (1) AI super PACs, (2) Nvidia Predicts Cooler Growth After Sales Record, and (3) Data centers will cause higher electricity prices

 

TL;DR ➡  HERE

ChatGPT's TL;DR summaries of Top 3 stories 

1. AI Super Pacs | 2. Nvidia | 3. Data Cenyers 

1) "AI super PACs, the hottest investment in tech"
-- Nguyen, The Verge, 8/26/25  

-- This story also coverd by WSJ, TechCrunch, NY Times, Politico, Fortune, Business Insider, Washington Post, Reuters, 

• Text WSJ

*** 1.  Silicon Valley Launches Pro-AI PACs to Defend Industry in Midterm Elections

Silicon Valley leaders are pooling over $100 million into a new political network, Leading the Future, designed to counter strict AI regulations in the upcoming midterm elections. Backers include Andreessen Horowitz, OpenAI’s Greg Brockman, and Palantir co-founder Joe Lonsdale, signaling a strong push from industry insiders to shape AI policy.

One major issue is the defense of industry-friendly policies. Leading the Future will use campaign donations and digital ads to support candidates seen as pro-innovation and oppose those advocating stricter controls on AI models.

• The PAC argues it is not against regulation but wants “sensible guardrails.”
• It positions itself as a counterweight to AI safety advocates calling for stronger restrictions.

A second issue is the political strategy modeled after crypto. The group seeks to emulate the Fairshake network, which helped defeat crypto skeptics and supported the first major crypto regulations.

• Leaders of Fairshake are also behind this PAC, including strategist Josh Vlasto.
• The AI effort will initially target New York, California, Illinois, and Ohio.

The third issue is the broader geopolitical and partisan landscape. Tech executives fear inconsistent state laws will emerge without federal action, and they see AI as critical to U.S. competition with China.

• Some Republicans’ attempts to ban state AI bills failed, raising industry concerns about patchwork rules.
• Leading the Future plans to back both Democrats and Republicans, but its leadership and funding reflect a growing tilt of Silicon Valley toward conservative politics.

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2) ''Nvidia Predicts Cooler Growth After Sales Record" 
-- Robbie Whelan, WSJ, 8/27/25 

-- This story also covered by Financial Times, NY Times, Business Insider, CNBC,  Investopedia, Investor's Business Daily, ... and Nvidia

• Text WSJ

*** 2. Nvidia Predicts Cooler Growth After Sales Record

1. Outlook cooled and the market flinched.
Nvidia guided Q3 revenue to ~$54B—slightly above consensus—but after multiple blowout quarters, the tone read “slower.” Shares fell ~3% after-hours on the tepid outlook and a narrow miss in data-center revenue.

• Market read: growth may be plateauing off peak AI euphoria.
• Second straight data-center miss amplified the jittery reaction.

2. Record quarter, minor data-center shortfall.

July-quarter sales hit $46.7B, roughly in line; data-center revenue rose 56% to $41.1B vs. $41.3B expected. Net income was $26.4B, up 59% YoY.

• Data center = 89% of total sales; tiny misses matter outsized.
• Strength still broad across hyperscalers training larger models.

3. China remains the wild card.

H20 sales were banned, then allowed, then undermined by Chinese guidance against buying; Nvidia assumed zero H20 revenue for Q3. A reduced-capability Blackwell for China is under discussion.

• Q2 data-center shortfall included a ~$4B H20 reduction.
• If resolved, Q3 China sales could add $2B–$5B.

4. Product/demand thesis intact but normalizing.

Blackwell GPU sales rose 17% QoQ; early customers include Disney, Hitachi, Hyundai, and SAP. Nvidia pitches itself as an “AI infrastructure company,” bundling GPUs, servers, and networking.

• CEO sees $3T–$4T hyperscaler AI capex over five years.
• Nvidia argues it can capture a very large share of that spend.

5. Capital returns and “next record” stance.

The board authorized $60B in new buybacks (after $24.3B repurchased in H1), signaling confidence despite near-term volatility. Management still calls this year—and next—“record-breaking.”

• Buybacks cushion earnings per share if growth moderates.
• Guidance tone: growth persists, just less “vertical.”

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3) "Data centers will cause higher electricity prices, study finds"
-- Zachery Eanes, Axios, 8/28/25 

-- The research team's Executive Summary ... The complete report (pdf)

• Note -- The following summary is the full text of the report's Executive Summary, rather than ChatGPT's summary of the report's Executive Summary; so it's a bit longer than usual.

• Why it matters: Absent policy action, this increase in demand for electricity generation could lead to dramatically higher electricity bills for consumers and undermine the nation’s clean energy goals. 
  
  -- For example, capacity market prices in the nation's largest grid operator (PJM) exploded in December 2024, from $30 to $270 per megawatt-day (MW-day), a ninefold rise that will increase bills for 67 million customers across 13 states.
  
  
• Catch up quick: Traditional utility planning assumes predictable 1%-2% annual demand growth over decades, but data centers are driving regional growth rates of 20%-30% annually. This mismatch between conventional planning timelines and demand growth has exposed limitations in capacity planning practices and increased short-run electricity generation costs, with some markets heavily utilizing older and more costly fossil-fuel generators in the short run.
  
  
• What we did: The Open Energy Outlook (OEO) Initiative, a collaboration between Carnegie Mellon University and North Carolina State University, modeled the energy and emissions implications of expected data center and cryptocurrency mine growth. The analysis models the infrastructure, economic, and environmental implications under current policies and recommends policy tools that could ensure the grid accommodates this expansion while protecting consumers and climate goals
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• What we found: Recent model results show that rapid data center demand growth increases generation from aging and expensive coal-fired power generators. In contrast, Texas utilizes more wind generation through targeted transmission investments. These contrasting outcomes underscore that data center growth will drive different regional outcomes.

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Other key findings from the modeling include:

• Regional cost surge: Central and Northern Virginia face projected 2030 electricity cost increases exceeding 25%, the highest regional increase in the model.
• Coal gets lifeline: More than 25 GW of aging coal plants otherwise scheduled for retirement would continue operating primarily to serve data center demand.
• Emissions spike: Power sector emissions could increase 30% compared to scenarios without data center growth, reaching 275 million metric tonnes of CO2 annually by 2030. That matches the entire annual carbon output of France.
• Carbon leakage: Virginia's data center growth drives increased fossil fuel use in nearby states like Ohio, Pennsylvania, and West Virginia, potentially undermining state and regional climate goals.

Policy takeaways: There are several state and federal policy strategies to consider that may mitigate the effects of this expected growth, such as:

• Fair cost allocation: Create new customer classes and revenue sharing mechanisms to ensure large users rather than families pay for elevated infrastructure costs.
• Strategic siting incentives: Incentivize data center expansions in renewable-rich regions and away from areas dependent on fossil fuel generation.
• Transmission acceleration: Improving permitting and cost allocation for transmission lines connecting renewable resources to demand centers.
• Demand flexibility requirements: Incentivize or require energy efficiency or load management during peak periods or emergencies.

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What's next: Data center and crypto mining electricity demand is projected to grow 350% by 2030. Without intervention, the pattern seen in PJM — massive price spikes followed by political backlash — will become more frequent. Continued investment in energy systems modeling resources like those maintained by the Open Energy Outlook Initiative can help identify policy interventions that balance the benefits and costs of increased data server activity. 

The bottom line: The digital infrastructure boom is outpacing our electricity system’s ability to respond. Data centers offer potential benefits but risk locking in higher emissions and driving up prices for households without proactive and coordinated planning. Policymakers must act now to align infrastructure investment and regulation with this demand surge

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