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Artificial Intelligence

A Frisson of Fission: Why Nuclear Power Won’t Replace Natural Gas as North America’s Critical Fuel

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17 minute read

From the C2C Journal

By Gwyn Morgan
The recent collapse of the power grid in Cuba, plunging the island nation into darkness and grinding its meagre economy to a halt, served as a reminder of electricity’s centrality to modern civilization. That dependency is only expected to increase as more electric vehicles take to the road – and, writes Gwyn Morgan, as the tech sector’s voracious appetite for electrons expands unabated. Morgan pours a pail of cold water on the much-mooted “nuclear revival” that has yet to deliver any actual new electricity. He argues instead that what’s needed is clear-eyed recognition that the most reliable, most abundant, most flexible and most affordable energy source is a fossil fuel located in vast quantities right beneath North Americans’ feet.
Three Mile Island: now there’s a name only us retired folk will remember. On March 28, 1979 the Unit 2 reactor in the Three Mile Island Nuclear Generating Station near Middletown, Pennsylvania incurred a partial melt-down. This was and remains the most serious accident in U.S. nuclear power-plant operating history. Although nobody was killed or injured, the near-catastrophe gripped Americans for months (that was when the term “melt-down” entered the public lexicon). It further energized the powerful anti-nuclear movement – eerily, the movie The China Syndrome concerning a fictional reactor melt-down had been released just 12 days before the actual Three Mile Island event – and shifted public opinion further against generating electricity by splitting the atom. Construction of new facilities slowed dramatically and eventually the number of cancellations – 120 – exceeded the approximately 90 nuclear plants that actually operate; not one was built for 30 years.

Now, 45 years later, comes announcement of a deal by tech giant Microsoft Corporation with Constellation Energy, owner of the infamous Three Mile Island facility, to restart the mothballed nuclear plant’s sister reactor, Unit 1. It will be the first such restart in the U.S.

Nuclear revival? Forty-five years after the infamous partial reactor core melt-down at Three Mile Island (pictured at top left and centre) and release of the sensationalistic anti-nuclear movie The China Syndrome (starring Jane Fonda, pictured at bottom left), the plant’s sister reactor is set for a US$1.6 billion restart to power data centres supporting artificial intelligence (AI). Shown at top right, Nuclear Regulatory Commission staff during Three Mile Island crisis; bottom right, U.S. President Jimmy Carter’s motorcade leaves Three Mile Island nuclear power station. (Sources of photos: (top left) zoso8203, licensed under CC BY 2.0; (top centre) AP Photo/Carolyn Kaster; (top right) NRCgov, licensed under CC BY-NC-ND 2.0; (bottom left) Everett Collection/The Canadian Press; (bottom right)  NRCgov, licensed under CC BY 2.0)

After all these years, why now? The answer is electricity demand for artificial intelligence (AI). Like many things in the tech realm, AI is a sneakily prodigious consumer of electricity, and AI’s use is exploding. The Microsoft/Constellation project is one of several such deals recently unveiled by tech giants.

A Goldman Sachs report from May of this year illuminates the issue, observing that, “On average, a ChatGPT query needs 10 times as much electricity to process as a Google search.” ChatGPT is a popular AI tool for information research and content creation (college kids particularly love it); a related and even more power-hungry tool spits out sophisticated digital imagery. And ChatGPT is only one of the burgeoning AI applications, which include everything from order processing and customer fulfillment to global shipping, generating sales leads, and helping operate factories and ports. Consequently, says Goldman Sachs, “Our researchers estimate data center power demand will grow 160% by 2030” – representing a remarkable one-third of all growth in U.S. electricity demand. “This increased demand will help drive the kind of electricity growth that hasn’t been seen in a generation,” says the report, which it pegs at a robust 2.4 percent per year during this period.

Power-hungry tech: The rise of AI tools like ChatGPT is forecast to increase power demand from data centres by 160 percent over the next six years, part of a robust expected increase in overall electricity consumption. Shown at bottom, Google data centre for the company’s Gemini AI platform. (Sources of photos: (top) Ju Jae-young/Shutterstock; (bottom) Google)

That’s a lot of juice. So where will all this additional power come from? In the U.S., 60 percent of electricity comes from natural gas and coal. Nuclear energy supplies 19 percent, hydroelectric facilities 6 percent, while wind and solar provide the remaining 14 percent. But wind and solar are intermittent, difficult to scale quickly, geographically limited – and, above all, cannot be counted on for the large-scale, uninterrupted, secure “base load” that AI requires.

The small modular reactor – a digital rendering of which is shown here – is said to offer great potential for adding nuclear power in manageable increments; the technology remains in testing, however, and is unlikely to hit the ground in Western Canada before 2034. (Source of image: OPG)

And while there is something of a nuclear revival happening in the U.S. and around the world, it will be four years before Three Mile Island comes back on-stream (at an anticipated cost of US$1.6 billion). Such a time-frame even to restart an existing facility underscores the long lead times afflicting the design, construction and commissioning of any technically complex, large-scale and politically controversial infrastructure. There’s a lot of talk about shortening that cycle by focusing on a new generation of “small modular reactors” (SMR), which generate about one-quarter the power of the regular kind. But SMRs remain largely untested and, here too, their lead times are long. Alberta and Saskatchewan, for example, have been talking with other provinces for the last four years about the concept, but haven’t even begun writing the governing regulations, let alone holding public hearings. The most optimistic scenario has the first SMR coming online in 2034.

Realistically, then, most of the growth in power demand for AI will have to be met by fossil fuels, however distasteful this will be to America’s tech moguls, who want to be seen as hip and earth-friendly even if not all of them are actually left-leaning. (A laughable detail of the recent Constellation/Microsoft deal is that Three Mile Island is being renamed the “Crane Clean Energy Center”, as if it’s some kind of Google-style campus.)

Those tech moguls will have to come to terms with natural gas. Natural gas is by far the lowest-emission fossil fuel. It is readily transportable by pipeline around North America. Large-scale gas-fired generating facilities can be built quickly, at reasonable cost and at low risk using mature technology, and can be located almost anywhere. And, fortunately for Americans, natural gas is in robust supply, with production setting new records nearly every year, and is currently cheaper than dirt. Indeed, the Goldman report itself forecasts (too conservatively, in my view) that the growth in electricity demand will in turn trigger “3.3 billion cubic feet per day of new natural gas demand by 2030, which will require new pipeline capacity to be built.”

In Canada, 60 percent of our electricity comes from hydro power, but very few viable new dam sites are left (Quebec recently commissioned a new dam after years of delay, and does have a few additional candidate sites, but these are the rare exceptions). Ontario’s nuclear plants supply 16 percent. Expansion of this is under consideration but, as noted, any new capacity is many years away. Coal and coke supply 8 percent (and are being further scaled back), natural gas 8 percent, and solar and wind 6 percent. So Canada’s growing electricity demand, much of it driven by AI and other tech requirements, will also need to be fuelled by natural gas. Fortunately, Canada too has enormous untapped natural gas reserves, and is also setting new production records.

Plentiful, flexible, transportable, cheap: The lowest-emission fossil fuel, natural gas offers the best way to meet growing global energy demand, representing an enormous export opportunity for Canada and the U.S. Shown at top left, Freeport LNG Liquefaction facility, Freeport, Texas; top right, LNG Canada project under construction in Kitimat, B.C. (Sources: (top left photo) Freeport LNG; (top right photo) The Canadian Press/Darryl Dyck; (graph) Canadian Energy Regulator)

In contrast to the United States and Canada, Europe is struggling just to meet existing electricity demand after natural gas imports from Russia dropped from 5.5 trillion cubic feet in 2021 to 2.2 trillion cubic feet last year. Europe’s only option is importing liquefied natural gas (LNG). Germany, previously the largest importer of Russian gas – and which in the face of the resulting energy shortage chose to shut down the last of its nuclear plants – is constructing LNG import/regasification terminals on an urgent basis. Regrettably, the situation could get even worse for Europe; China is in talks with Russia that could lead to complete stoppage of remaining gas flows, further escalating Europe’s need for LNG.

That makes meeting the electricity demands of the EU’s smaller but also growing AI sector even more challenging. Moreover, Europe’s power grid is the oldest in the world at 50 years, so it needs both modernization and expansion. The above-quoted Goldman Sachs report states that, “Europe needs $1 trillion [in new investment] to prepare its power grid for AI.” Goldman’s researchers estimate that the continent’s power demand could grow by at least 40 percent in the next ten years, requiring investment of US$861 billion in electricity generation on top of the even higher amount to replace those old transmission systems. The situation is complex and challenging, but one thing is clear: the electricity Europe requires for AI can be fuelled in large part only by natural gas imported from friendly countries.

The AI frenzy may still seem incomprehensible to most Canadians, so it’s important to understand how its applications are spreading through more and more of the economy. Toronto-based Thomson Reuters is a well-known company that provides data and information to professionals across three main industries: legal, tax & accounting, and news & media. A recent Globe and Mail article about Thomson Reuters’ journey from reticence to embrace of the AI world provides helpful perspective. After spending a year of assessment, management concluded that AI was key to the company’s future. Thomson Reuters pledged to spend US$100 million annually to develop its AI capacity. Knowing that this is the cost for just one medium-sized Canadian company puts into perspective the potential scale of AI’s electricity-hungry global growth.

More juice needed: As many more companies – like Toronto-based information conglomerate Thomson Reuters – come to understand the need to embrace AI technology, the global appetite for electricity will continue to grow, demand that will only increase with the further advancement of cryptocurrencies and electric vehicles. (Sources of photos: (left) The Canadian Press/Lars Hagberg; (right) Shutterstock)

Almost forgotten in the electricity-devouring list are cryptocurrencies. In 2020-21 Bitcoin “mining” (the data centres that compete to solve the encrypted blockchains as quickly as possible) consumed more electricity than the 230 million people of Pakistan. Meeting the tech sector’s voracious and – if the growth forecasts are accurate – essentially insatiable demand for electricity will be challenging enough, but there’s another major source of electricity demand growth: electric vehicles (EVs). An International Energy Agency report estimates that EV power needs in the U.S. and Europe will rise from less than 1 percent of electricity demand today to 14 percent in 2030 if electric vehicle mandates are to be met. This C2C article examines the specific implications for Canada.

Who could have imagined that these celebrated new technologies – billed as clean, green and “sustainable” – would end up being the biggest drivers of fossil fuel growth! With our incredible endowment of accessible natural resources, our nation should seize this enormous natural gas export opportunity by getting rid of the bureaucratic time-consuming processes and other roadblocks that have so long discouraged getting new LNG export terminals built and operating.

Gwyn Morgan is a retired business leader who was a director of five global corporations.

Artificial Intelligence

The Emptiness Inside: Why Large Language Models Can’t Think – and Never Will

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This is a special preview article from the:

By Gleb Lisikh

Early attempts at artificial intelligence (AI) were ridiculed for giving answers that were confident, wrong and often surreal – the intellectual equivalent of asking a drunken parrot to explain Kant. But modern AIs based on large language models (LLMs) are so polished, articulate and eerily competent at generating answers that many people assume they can know and, even
better, can independently reason their way to knowing.

This confidence is misplaced. LLMs like ChatGPT or Grok don’t think. They are supercharged autocomplete engines. You type a prompt; they predict the next word, then the next, based only on patterns in the trillions of words they were trained on. No rules, no logic – just statistical guessing dressed up in conversation. As a result, LLMs have no idea whether a sentence is true or false or even sane; they only “know” whether it sounds like sentences they’ve seen before. That’s why they often confidently make things up: court cases, historical events, or physics explanations that are pure fiction. The AI world calls such outputs
“hallucinations”.

But because the LLM’s speech is fluent, users instinctively project self-understanding onto the model, triggered by the same human “trust circuits” we use for spotting intelligence. But it is fallacious reasoning, a bit like hearing someone speak perfect French and assuming they must also be an excellent judge of wine, fashion and philosophy. We confuse style for substance and
we anthropomorphize the speaker. That in turn tempts us into two mythical narratives: Myth 1: “If we just scale up the models and give them more ‘juice’ then true reasoning will eventually emerge.”

Bigger LLMs do get smoother and more impressive. But their core trick – word prediction – never changes. It’s still mimicry, not understanding. One assumes intelligence will magically emerge from quantity, as though making tires bigger and spinning them faster will eventually make a car fly. But the obstacle is architectural, not scalar: you can make the mimicry more
convincing (make a car jump off a ramp), but you don’t convert a pattern predictor into a truth-seeker by scaling it up. You merely get better camouflage and, studies have shown, even less fidelity to fact.

Myth 2: “Who cares how AI does it? If it yields truth, that’s all that matters. The ultimate arbiter of truth is reality – so cope!”

This one is especially dangerous as it stomps on epistemology wearing concrete boots. It effectively claims that the seeming reliability of LLM’s mundane knowledge should be extended to trusting the opaque methods through which it is obtained. But truth has rules. For example, a conclusion only becomes epistemically trustworthy when reached through either: 1) deductive reasoning (conclusions that must be true if the premises are true); or 2) empirical verification (observations of the real world that confirm or disconfirm claims).

LLMs do neither of these. They cannot deduce because their architecture doesn’t implement logical inference. They don’t manipulate premises and reach conclusions, and they are clueless about causality. They also cannot empirically verify anything because they have no access to reality: they can’t check weather or observe social interactions.

Attempting to overcome these structural obstacles, AI developers bolt external tools like calculators, databases and retrieval systems onto an LLM system. Such ostensible truth-seeking mechanisms improve outputs but do not fix the underlying architecture.

The “flying car” salesmen, peddling various accomplishments like IQ test scores, claim that today’s LLMs show superhuman intelligence. In reality, LLM IQ tests violate every rule for conducting intelligence tests, making them a human-prompt engineering skills competition rather than a valid assessment of machine smartness.

Efforts to make LLMs “truth-seeking” by brainwashing them to align with their trainer’s preferences through mechanisms like RLHF miss the point. Those attempts to fix bias only make waves in a structure that cannot support genuine reasoning. This regularly reveals itself through flops like xAI Grok’s MechaHitler bravado or Google Gemini’s representing America’s  Founding Fathers as a lineup of “racialized” gentlemen.

Other approaches exist, though, that strive to create an AI architecture enabling authentic thinking:

 Symbolic AI: uses explicit logical rules; strong on defined problems, weak on ambiguity;
 Causal AI: learns cause-and-effect relationships and can answer “what if” questions;
 Neuro-symbolic AI: combines neural prediction with logical reasoning; and
 Agentic AI: acts with the goal in mind, receives feedback and improves through trial-and-error.

Unfortunately, the current progress in AI relies almost entirely on scaling LLMs. And the alternative approaches receive far less funding and attention – the good old “follow the money” principle. Meanwhile, the loudest “AI” in the room is just a very expensive parrot.

LLMs, nevertheless, are astonishing achievements of engineering and wonderful tools useful for many tasks. I will have far more on their uses in my next column. The crucial thing for users to remember, though, is that all LLMs are and will always remain linguistic pattern engines, not epistemic agents.

The hype that LLMs are on the brink of “true intelligence” mistakes fluency for thought. Real thinking requires understanding the physical world, persistent memory, reasoning and planning that LLMs handle only primitively or not all – a design fact that is non-controversial among AI insiders. Treat LLMs as useful thought-provoking tools, never as trustworthy sources. And stop waiting for the parrot to start doing philosophy. It never will.

The original, full-length version of this article was recently published as Part I of a two-part series in C2C Journal. Part II can be read here.

Gleb Lisikh is a researcher and IT management professional, and a father of three children, who lives in Vaughan, Ontario and grew up in various parts of the Soviet Union.

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Artificial Intelligence

‘Trouble in Toyland’ report sounds alarm on AI toys

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From The Center Square

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Parents should take precaution this holiday season when it comes to artificial intelligence toys after researchers for the new Trouble in Toyland report found safety concerns.

Illinois Public Interest Research Group Campaign Associate Ellen Hengesbach said some of the toys armed with AI raised red flags ranging from toys that talk in-depth about sexually explicit topics to acting dismayed when the child disengages.

“What they look like are basically stuffed animals or toy robots that have a chatbot like Chat GPT embedded in them and can have conversations with children,” Hengesbach told The Center Square.

The U.S. PIRG Education Fund report also points out that at least three toys have limited to no parental controls and have the capacity to record your child’s voice and collect other sensitive data via facial recognition.

“All three were willing to tell us where to find potentially dangerous objects in the house, such as plastic bags, matches, or knives,” she said. “It seems like dystopian science fiction decades ago is now reality.”

In the face of all the changing landscape and rising concerns, Hengesbach is calling for immediate action.

“The two main things that we’d like to see are more oversight in general and more research so we can see exactly how these toys interact with kids, really just identify what the harms might be and have a lot more transparency from companies around how are these toys designed,” she said. “What are they capable of and what the potential risks or harms might be. I just really want us to take this opportunity to really think through what we’re doing instead of rushing a toy to market.”

As for the here and now, Hengesbach stressed parents would be wise to be thoughtful about their purchases.

“We just have a big open question of what are the long-term impacts of these products on young kids, especially when it comes to their social development,” she said. “The fact is that we just really won’t know what the long-term impacts of AI friends and companion toys might be until the first generation playing with them grows up. For now, I think it’s just really important that parents understand that these AI toys are out there; they’re very new and they’re basically unregulated.”

Since the release of the report, Hengesbach said one AI toymaker temporarily suspended sales of all their products to conduct a safety audit.

This year’s 40th Trouble in Toyland report also focuses on toys that contain toxins, counterfeit toys that haven’t been tested for safety, recalled toys and toys that contain button cell batteries or high-powered magnets, both of which can be deadly if swallowed.

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