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Elon Musk Predicts China Will Outsparkle US By Flipping Their AI Power Switch

KEY POINTS

  • Elon Musk said on the 'Moonshots with Peter Diamandis' podcast that China will surpass everyone in AI computing power by 2026 due to electricity capacity.
  • He estimated China could have three times the US electricity output by 2026, enabling vast AI data centers despite chip embargoes.
  • Goldman Sachs and Chinese leader Xi Jinping highlighted China's expanding energy capacity and breakthrough AI chip research fueling its rapid innovation.

In a plot twist plot-challenged sci-fi could appreciate, Tesla and SpaceX overlord Elon Musk announced on the 'Moonshots with Peter Diamandis' podcast (yes, that podcast exists) that by 2026, China will have about triple the electricity output of the US, making it the energy kingpin for AI compute. Musk’s math: electricity beats chip embargoes because China will temporarily 'figure out the chips' even without the fanciest ones. In a power flex, Goldman Sachs reports China could boast 400 gigawatts of spare capacity by 2030—enough juice for data centers, popcorn machines, and maybe your fridge. Meanwhile, Xi Jinping celebrated China’s AI chip breakthroughs as if launching fireworks on New Year’s, all while Musk dreams of turning X into 'WeChat++'—because what’s better than copying the world's largest super app to rule social media? Talk about powering up the AI tech melee, with enough electricity to roast a seasonal turkey–or a strategic competitor.

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Source: Businessinsider | Published: 1/7/2026 | Author: Lee Chong Ming