What exactly are we paying for when we use AI?

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By Atharva Pawde, Programme Lead, Centre for Accelerating India’s Growth, NFPRC Foundation

We instinctively understand why an airline ticket costs money. Behind a two-hour flight lie fuel, crew, airport charges, maintenance and insurance and an enormous physical infrastructure invisible to the passenger.

Artificial intelligence feels different. A question is typed into a small box; An answer appears instantly. Nothing seems to move and no human seems involved. The experience feels less like using industrial infrastructure than like drawing on a more unlimited digital resource.

But AI is not weightless. Between the prompt and the response, specialised processors perform vast numbers of calculations, model parameters move repeatedly through high-bandwidth memory, electricity powers the computation, and cooling systems remove the heat. What looks like an exchange of words is an industrial process.

The user may see only a subscription fee or a charge of a few fractions of a dollar. That modest...

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Cherokee Nation joins list of tribes banning data centers on tribal lands due to water, energy, noise, and cultural resource protection concerns — and all new projects require ‘early consultation’

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