Jensen Huang Reveals AI's Biggest Problem, And It Is Not Chips — Joe Rogan Agrees This Is The 'Smartest' Way To Solve It
On Wednesday, Nvidia Corp (NASDAQ:NVDA) CEO Jensen Huang told Joe Rogan that the future of artificial intelligence won't be constrained by chips but by electricity — and he expects tech giants to start powering their data centers with their own nuclear reactors.
Huang Says AI's Growth Hinges On Solving The Energy Crunch
In an episode of "The Joe Rogan Experience," Huang said the rapid expansion of AI is running headfirst into a new kind of limitation: power.
When Rogan asked whether energy has become the biggest hurdle for AI, Huang didn't hesitate. "It's the bottleneck," he said, highlighting that the availability of electricity, not the availability of GPUs, will determine how far and fast the industry can scale.
Rogan pushed further, mentioning that Alphabet Inc.'s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google is already building nuclear facilities to run their AI operations.
Huang said he hadn't heard that specific development but predicted a future where small nuclear reactors become commonplace. "I think in the next six, seven years, I think you’re going to see a whole bunch of small nuclear reactors," he said.
Small Nuclear Reactors Could Sit Beside Data Centers
Huang told Rogan that the reactors he envisions aren't massive traditional plants but compact systems producing "hundreds of megawatts."
They would be installed close to the companies that need them, he said, allowing tech firms to generate power on-site rather than depending solely on the grid.
"We'll all be power generators," Huang said, comparing it to a farm producing its own resources. He added that locally generated nuclear power could reduce grid strain, offer a reliable supply and even feed surplus electricity back into surrounding communities.
Rogan called the strategy "the smartest way to do it," and Huang agreed, saying that building the capacity companies need — and contributing when they can — will be essential as AI workloads continue to surge.
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Google And Others Are Already Moving Toward Nuclear
Huang's prediction tracks with a trend already taking shape. In 2024, Google announced plans to purchase power from small modular reactor developer Kairos Power, targeting its first advanced reactor by 2030.
A 2025 agreement between Kairos and the Tennessee Valley Authority marked the first time a U.S. utility committed to buying electricity from next-generation reactors.
Analysts expect data center electricity use to jump 175% by 2030, a surge so large that Goldman Sachs has compared it to adding a new top 10 energy-consuming country to the global grid.
For Huang, the takeaway is clear: AI's next frontier won't be defined by hardware breakthroughs alone. It will be defined by who can produce enough power to keep the machines running.
U.S. electricity demand is projected to grow 2.6% a year through 2030 — a jump of 1.2 percentage points driven largely by data centers. That level of growth is notable, as the country has rarely seen power demand rise above 2% at any point over the past 20 years.
Energy And Nuclear Stocks: Market Reaction
Here's how key energy and nuclear-related stocks are moving in after-hours trading, along with their year-to-date performance:
| Company (Ticker) | After-Hours Price | After-Hours % Change | YTD % Change |
|---|---|---|---|
| GE Vernova (NYSE:GEV) | $604.00 | +0.34% | +77.60% |
| Vistra Corp. (NYSE:VST) | $171.93 | +0.16% | +14.69% |
| Constellation Energy (NASDAQ:CEG) | $362.20 | +0.26% | +48.91% |
| Fluence Energy (NASDAQ:FLNC) | $19.69 | −0.81% | +17.39% |
| Jabil Circuit Inc. (NYSE:JBL) | $214.50 | +0.21% | +49.86% |
| First Solar Inc. (NASDAQ:FSLR) | $254.17 | −0.74% | +37.32% |
| Energy Fuels Inc. (NASDAQ:UUUU) | $15.15 | +0.34% | +165.85% |
| Uranium Energy Corp. (NYSE:UEC) | $12.98 | +0.23% | +69.95% |
Benzinga's Edge Stock Rankings show that while NVDA is holding a solid long-term trend, its short and medium-term performance is still under pressure. Click here to see how it stacks up against its peers.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.