The revenue race between Anthropic and OpenAI is getting more heated

To power the 1-gigawatt data center, Musk took advantage of a local loophole that allowed portable gas generators to be used without any permits, as long as they did not spend more than 364 days in the same spot. That allowed xAI to bring in dozens of truck-sized gas generators to quickly supply the massive amount of power the data center needed to train xAI’s Grok model.

The new EPA rule says the use of such portable generators falls under federal regulation, and the company did need air quality permits to operate the turbines. xAI is also using dozens of such generators to power its Colossus 2 data center just over the border in Alabama.

Earlier this week, Trump called on tech giants to “pay their own way,” arguing that households and small businesses should not bear the cost of power infrastructure needed to support energy-hungry data centers.

Microsoft quickly responded, saying it would “pay utility rates that are high enough to cover our electricity costs,” along with committing to other changes aimed at easing pressure on the grid. Other major tech companies are expected to follow suit, though Wedbush Securities analyst Dan Ives warned the added costs could slow the pace of data center build-outs.

As we’ve noted, forcing tech companies to shoulder higher electricity costs is likely to hit some firms harder than others. Companies like Microsoft, Google, and Amazon can pass at least some of those costs on to customers by selling data center capacity downstream. Meta, in contrast, does not have a cloud business, meaning its AI ambitions lack a direct revenue stream to offset rising power costs.

So far tech stocks don’t appear to be affected much in premarket trading. However utility companies most levered to the AI boom certainly are, with Vistra, Constellation Energy, and Talen Energy deep in the red ahead of the open as analysts at Jefferies warn that these firms face risks from this plan.

Bloomberg reports that OpenAI has been on the hunt for US-based suppliers for silicon and motors for robotics, as well as cooling systems for data centers.

AI companies are looking toward robots as a logical next step for finding applications for their models.

OpenAI told Bloomberg that US companies building the AI brains of robots might have an edge against the Chinese hardware manufacturers that are currently making some impressive humanoid robots.