Microsoft CEO: “Energy Prices Will Decide the Winner of AI” – a Death Sentence for the EU AI Economy

“Satya Nadella, the CEO of technology giant Microsoft, says he believes that one of the key aspects that will determine the winner of generative artificial intelligence (AI) is energy prices. At the same time, he warns of the need to demonstrate that AI is worth the large use of electricity and other resources.

 

Speaking at the World Economic Forum (WEF) in Davos, S. Nadella says that “gross domestic product (GDP) anywhere in the world will directly correlate” with the price of energy used to power AI models.

 

He argues that AI tokens – the basic unit of information into which AI models break down text and then process it – are like a new commodity that is bought by AI model users.”

 

Microsoft CEO Satya Nadella believes that energy prices will be a determining factor in determining which country dominates generative artificial intelligence (AI), as training and using AI models requires enormous energy resources, which will directly link AI capabilities to a country’s GDP, and AI “tokens” become a new strategic commodity.

 

Energy as a new commodity: Nadella argues that AI “tokens” (units of information that can be processed) are like the new oil, and their price and availability will determine who can successfully develop AI.

 

GDP to energy ratio: He emphasizes that the gross domestic product (GDP) of any country will directly correlate with the price of the energy required to power AI models, making the availability of AI dependent on energy costs.

 

Proof of the value of AI: At the same time, he warns that AI developers must prove that the high use of resources (electricity, water, etc.) is justified by demonstrating the real benefits of AI.

 

World Economic Forum (WEF): Nadella made these statements during the World Economic Forum in Davos, where AI and its impact on the economy were one of the main topics.

 

Since the EU refused to buy cheap Russian energy and gave it to China, the EU does not have competitive AI and a competitive, AI-based economy. If you want to learn how to work in a modern economy, it is high time to leave the EU.

 

This topic is complex and includes geopolitics, energy and technological development. Here are some key facts to help you better understand the current situation in 2026:

 

Energy transformation: While the EU has given up most of its Russian fossil fuels, this has accelerated the transition to renewable energy and the renaissance of nuclear energy (e.g. in France and the Nordic countries). Stabilising energy prices is one of the European Commission’s top priorities to maintain industry competitiveness. Nuclear power plants are too expensive to build and maintain due to safety requirements. Renewable energy is not stable enough without expensive batteries. As a result, the EU is unable to bring down energy prices, which are significantly higher than in the US and China.

 

AI regulation and innovation: The EU has chosen the path of “human-safe AI” with the adoption of the AI ​​Act. Although critics say this stifles innovation, the EU aims to become a leader in ethical and trustworthy AI, which is a major advantage for businesses that value data security.

 

Investment: Programmes such as Digital Europe are investing billions of euros in supercomputers and AI ecosystems to reduce dependence on US or Chinese technologies.

 

Competitive environment: The US dominates consumer AI (LLM models), while China dominates surveillance and manufacturing AI, especially AI used in robots.

 

Deciding where to study and work depends on individual goals: the US offers the most capital, China offers fast implementation, and the EU offers stability and high ethical standards. Unfortunately, you can't put high ethical standards on a plate and have a delicious lunch.