Former Google CEO Eric Schmidt has urged the United States to secure reliable energy sources, pointing to the need to forge a partnership with Canada as it continues to ramp up its AI capabilities.
Schmidt points to the abundance of hydroelectric power in Canada as the best way to power US-developing AI servers and win the global AI race. However, he warned that a race to claim the AI crown could lead to conflict and sabotage, referencing the concept of “Mutual Assured AI Malfunction” and the potential for bombing rival data centers.
Former Google CEO wants US-Canada AI alliance
According to Schmidt the only way the US can be at the forefront of the global AI race is to enter into a strategic relationship with Canada. Donald Trump, on the other hand, has put a wedge between both nations with his trade war. He estimates that the US industry needs an extra 90 gigawatts to power its operations, a demand that shows a broader national challenge.
He added that a typical nuclear plant generated about one gigawatt and building about 90 in the US is not feasible. Based on his argument at the Vancouver TED conference, energy is limited, which means the United States needs additional gigawatts so they don’t stifle the data centers.
Schmidt clarified that the US’ solution could be Canada’s hydroelectric power. However, he noted that there could be an issue forging alliances due to Trump’s notion that Canada has nothing that the US needs and the trade wars as a result of the tariffs. Meanwhile, politicians in Canada recognize the need to push power for tech giants, with some discussing ways to meet the demands.
In an interview in January, Conservative leader Pierre Poilievre said there were about 250 data centers in Canada, but there could be many more. He stressed that Canada’s energy resources — nuclear, hydro, natural gas, and others — were essential to fulfilling this demand. He added that to boost and bring things home, everything needed to be put under good conditions.
Schmidt warned that the race for AI dominance among global powers could spark conflict and trigger preemptive strikes. He introduced the idea of “Mutual Assured AI Malfunction,” where nations sabotage each other’s AI systems to prevent unilateral control—potentially by targeting data centers.
“These conversations are already happening between nuclear rivals,” Schmidt said, urging leaders to take the threat seriously. He also referenced informal talks with China, noting that it was organized by his co-author Henry Kissinger.