Artificial Intelligence consumes as much as 20 percent of global data-center power demand, based on research published in the journal Joule. This energy consumption appears to be accelerating at a pace faster than it can be replenished.
As per a Reuters report, America’s largest power grid is under strain as its data centers and AI chatbots are consuming power faster than new plants can be built. The report reveals that electricity bills are anticipated to swell by more than 20% this summer in some parts of PJM Interconnection’s territory.
The said territory covers 13 states and serves 67 million customers in a region with the most data centers in the world. PJM is facing major issues. The Pennsylvania governor is threatening to abandon the grid, the CEO is leaving, and two board members have been removed. These problems began last year when auction prices jumped over 800% and led to higher electricity bills.
A new auction is now coming up, and prices are anticipated to rise again. These auctions make sure there is enough power during extreme weather. According to several sources, PJM has made the situation worse until now by delaying auctions and halting the application process for new plants.
“We need speed from PJM, we need transparency from PJM and we need to keep consumer costs down with PJM. I think they’ve taken some steps in that direction which is really encouraging to me and we’re going to continue to work at it.”
-Pennsylvania Governor Josh Shapiro told Reuters in an interview.
On the other hand, PJM says the supply and demand crunch has been driven largely by factors outside of its control.
“Prices will remain high as long as demand growth is outstripping supply – this is a basic economic policy. Right now, we need every megawatt we can get.”
-PJM spokesman Jeffrey Shields.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q1 2025.
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10. Pony AI Inc. (NASDAQ:PONY)
Number of Hedge Fund Holders: 13
Pony AI Inc. (NASDAQ:PONY) is one of the 10 AI Stocks Investors Are Watching This Week. On July 7, PRNewswire and several other news sources reported that Pony.ai and Dubai’s Roads and Transport Authority (RTA) held a reveal ceremony of Pony.ai’s Robotaxi in Dubai. The ceremony aimed to strengthen the partnership between the two, to advance Level (L4) autonomous mobility solutions.
The partnership builds on their collaboration from last year, confirming that they will keep working together to bring advanced self-driving technology to Dubai’s transportation system.
The alliance aims to improve urban mobility efficiency, decrease traffic congestion, and form sustainable transportation models. This, in turn, supports Dubai’s vision to transform 25% of all journeys in the city into autonomous trips by 2030.
“The collaboration with Dubai RTA exemplifies our commitment to deploying Level 4 autonomous technology in strategic global markets. By aligning our technological capabilities with RTA’s visionary leadership, we’re establishing foundational standards for intelligent transportation ecosystems across the MENA region.”
– Pony.ai CFO Dr. Leo Wang
Pony AI Inc. (NASDAQ:PONY) specializes in autonomous mobility, offering AI-driven robotruck and robotaxi services, intelligent driving software, and vehicle integration solutions.
9. CoreWeave, Inc. (NASDAQ:CRWV)
Number of Hedge Fund Holders: 36
CoreWeave, Inc. (NASDAQ:CRWV) is one of the 10 AI Stocks Investors Are Watching This Week. On July 7, CoreWeave announced that it will buy crypto miner Core Scientific in an all-stock deal valued at about $9 billion. The deal comes amid AI infrastructure firms racing to secure the energy and data center capacity needed for powering burgeoning demand.
According to CoreWeave, the deal will allow the immediate elimination of more than $10 billion of cumulative future lease overhead to be paid for existing contractual sites over the next 12 years. The offer prices Core Scientific at $20.40 per share, reflecting a premium of around 66% to the stock’s closing price before news related to deal talks surfaced in late June.
Core Scientific stockholders will be receiving 0.1235 newly issued CoreWeave stock for each share they hold.
“This acquisition accelerates our strategy to deploy AI and HPC (high-performance computing) workloads at scale.”
-CoreWeave CEO Michael Intrator.
CoreWeave, Inc. (NASDAQ:CRWV) is a cloud platform provider that provides equipment for AI and other computing purposes.
