OpenAI sent a memo to congress regarding Deepseek distillation:
"Sustaining the American advantage on AI depends on depends on whether we can reliably generate and deliver power at scale."
Power Delivery - $VRT, $ETN, $PWR, $WMB, $KMI
Tier-1 Energy Providers: $CEG, $VST, $TLN, $GEV, $NEE, $BEPC, $D
Grid-Energy / Storage - $TSLA, $FLNC, $NRGV, $BE
Energy: $TE, $FSLR, $NRG
This is a tailwind reiterated for these companies.
And there's a second-order tailwind for companies that already secured GW capacity like $IREN, $NBIS, $WULF, and $CIFR.
The core issue of the memo was around IP theft and national security issues. But the largest warning about sustaining an advantage was Energy.
OpenAI warning Congress that in 2024, China added 429 Gigawatts (GW) of new power capacity, which was more than a third of the entire US grid and more than half of global electricity growth. Without a radical expansion of the American power grid, they believe China’s "brute force" energy buildout will eventually allow them to surpass Western AI capabilities.
Photonics, Advanced Packaging, and Memory are three fastest growing bottlenecks right now. However, OpenAI explicitly warned the U.S. government that whoever generates the most power wins the AI race.
Their message: Invest in American Energy.
