GE Vernova Inc.(US:GEV) 3 6 Ke·2025-12-29 00:30Core Viewpoint - A violent struggle between efficiency and regulation is unfolding at the intersection of Silicon Valley and Washington, as tech giants require massive computing power to maintain AI dominance, while the outdated U.S. power grid faces long wait times for access [1] Group 1: Industry Dynamics - The Stargate project in Texas is redefining industrial logic by using aeroderivative turbines for on-site power generation to bypass the lengthy grid connection wait times [2] - The demand for aeroderivative turbines has surged, with GE Vernova reporting a 33% increase in orders in the first three quarters of 2025 [3] - Companies like Boom Supersonic are pivoting to sell power turbines to data centers, indicating a shift in revenue sources due to the urgency of AI power needs [3] Group 2: Cost and Environmental Impact - On-site power generation, while solving immediate power availability issues, typically incurs a levelized cost of energy (LCOE) that is more than double the average industrial grid price, creating a heavy asset burden for capital markets [6] - The reliance on fossil fuel-driven on-site generation results in significantly lower carbon emission efficiency compared to optimized modern grids, representing a regression in environmental narratives [7] Group 3: Regulatory and Political Landscape - A power struggle is emerging over grid control, with former President Trump pushing for federal oversight of grid connections, which could reshape the technological landscape for the next decade [9] - The proposed regulatory changes aim to streamline the approval process for AI-related power needs, reflecting a national strategy to maintain competitive advantage [11] - State-level pushback against federal control highlights the tension between federal power expansion and state rights, with potential legal battles anticipated [13] Group 4: Future Outlook - The current reliance on aircraft engines for power generation is viewed as a temporary solution, with a future focus on centralized regulatory power and the deployment of small modular reactors (SMRs) as a more sustainable energy source [15] - Investors are advised to shift their focus from just computing chips to companies that can manage the entire power infrastructure, including land acquisition and turbine production [15] - The merger between Trump Media Technology Group and TAE Technologies signifies a deepening political involvement in the energy sector, aimed at mitigating future AI energy shortages [16]