US AI developers face higher electricity costs than their Chinese counterparts
At the Edmond de Rothschild AM 2026 Investment Outlook Conference, Chief Investment Officer Benjamin Melman pointed out that US AI companies face a competitive disadvantage due to higher electricity prices. He stated that domestic power supply in the US is insufficient to meet the rapidly growing demand for AI, while electricity prices in China are significantly lower than in the US. Melman believes this cost gap intensifies competitive pressures and increases the overall cost of AI development in the US.
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