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OECD expects AI boom to help offset Middle East energy shock for now

Reuters · · International · AI Governance

The OECD projects that economic growth driven by the AI sector may help cushion the impact of an energy price shock originating in the Middle East, at least in the near term.

Why this matters: AI infrastructure runs on enormous amounts of energy. That connection usually goes the other way — people worry about how energy costs affect AI. Here the OECD is saying AI economic output may help absorb a broader energy shock. That framing matters for anyone tracking how governments and institutions justify AI investment. It also raises a practical tension: the industry consuming more power than ever is now being counted on to offset the costs of that same energy becoming more expensive.

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