The U.S. is still arguing about data centers, while El Salvador has already started giving out Grok to students nationwide for free Everyone has always assumed that in the AI era, the U.S. would ultimately reap the most benefits: models in the U.S., chips in the U.S., capital in the U.S. But a16z managing partner Jen Kha pointed out in a recent interview that a surprising reversal is already underway. Some countries that no one would have ever expected are now outpacing the U.S. in AI adoption. South Korea is preparing to turn advanced AI into a universal public service, El Salvador is rolling out Grok across its schools, and they’re even starting to explore AI in healthcare. Meanwhile, in the U.S., debates over data center energy consumption, water usage, site selection, and regulations are still dragging on. The country with the strongest tech isn’t necessarily the one where tech gets implemented the fastest. This is also why a16z suddenly launched the $1.1 billion Machine Age Fund. Because the stronger the models get, the more the real bottlenecks shift to the physical world: chips, memory, networks, liquid cooling, power supply, data centers, robots—and even skilled electricians who can handle DC power are starting to run short.