Musk defends AI data centres, slams EU rules at G20

Elon Musk addressed the G20 on Tuesday, advocating for cautious regulation of technology and artificial intelligence (AI) while championing the construction of data centres to support the AI revolution. The Tesla and SpaceX CEO was virtually participating in the tech-focused G20 meeting in North Carolina amid a global debate on how governments should handle AI's potential benefits and threats.

The Trump administration favors a hands-off approach, leaving the industry to self-regulate, despite companies' rapid pursuit of AI advancements. In a display of his administration's reluctance to hinder the AI sector, President Trump defended opponents of AI data centres on Monday, alleging they would lead to economic decline and foster a rivalry with China.

During the Chapel Hill meeting, Musk criticized European policies for impeding technological progress, stating that high regulation levels default laws, inhibiting innovation. He emphasized that the AI data centres are essential to meet the power demands of AI and urged companies to contribute their fair share in taxes. Musk also criticized EU regulations as excessively stringent, which he believes slow down technological advancements, although EU officials strongly refute these claims.

The United States is currently leading the G20 presidency and aims to limit regulatory burdens and promote new technologies. The meeting, organized by the White House Office of Science and Technology Policy Director Michael Kratsios and Commerce Secretary Howard Lutnick, sought commitments to light-touch AI regulation. Attendees included Nvidia's Jensen Huang, OpenAI's Sam Altman, Google DeepMind's Demis Hassabis, and Meta's Mark Zuckerberg, who are participating in person and virtually, respectively.