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The system

The grid operator's connection offer states how much power the site may draw.

Sources checked .

Cross-section of five AI system layers.
  1. Physical infrastructureElectricity and sites

    How it works

    A data centre draws electricity through a grid connection. The connection offer fixes how much power the site may use, even if the building could hold more equipment.

    • Grid operators
    • Data-centre owners
    • Electricity suppliers
    • Planning authorities
    Constraint
    The local network may not have room for the requested load. The project may have to wait for new grid equipment.
    Who decides
    The grid operator decides how much capacity to offer and on what terms. The planning authority decides whether the site may be built.

    Applicable rules

    • Large-load tariff proceedings

      FERC is examining who should bear the connection cost when a very large load applies for grid access. The proceedings also cover reliability risk.

      FERC release and orders
  2. Processors and cloud accessMachines and cooling

    How it works

    During training, servers change the model's weights. During inference, they use the saved weights to calculate an output.

    • Chip suppliers
    • Cloud operators
    • Data-centre operators
    • Compute customers
    Constraint
    Specialised AI processors can be hard to obtain. The electricity available to each rack may also limit how many processors the site can run.
    Who decides
    An export licence may decide where a chip can be delivered. Once it is installed, the cloud contract decides who may use it.

    Applicable rules

    • Advanced-computing export controls

      US export rules apply by destination and end user. For a covered chip, the available licence route may decide whether the sale can proceed.

      Export Administration Regulations, Part 740

    • Competition powers over cloud-linked software

      If the CMA designates Microsoft as having strategic market status, it may later impose conduct requirements.

      CMA case page
  3. ModelsWeights and training

    How it works

    Training produces the numerical weights stored in a model.

    • Model developers
    • Model providers
    • Training partners
    • Downstream integrators
    Constraint
    A large training run requires specialised processors and sufficient memory.
    Who decides
    The provider decides whether downstream companies receive the model and what they are allowed to do with it.

    Applicable rules

    • EU provider obligations

      The AI Act requires providers of general-purpose AI models to keep documentation and give specified information to downstream providers.

      European Commission GPAI guidance

    • California frontier-developer duties

      SB 53 requires covered developers to maintain a safety framework. It also requires reports of specified critical incidents.

      California chaptered SB 53 text
  4. DeploymentServices and decisions

    How it works

    A company puts a model into a service or uses its output in a decision.

    • Deployers
    • Platform operators
    • Software customers
    • People subject to decisions
    Constraint
    The deployer may need the model or cloud provider to make a change before it can update the service.
    Who decides
    The service operator normally controls what the user sees and how a decision is made. A contract may leave part of that choice with the platform provider.

    Applicable rules

    • AI Act transparency duties

      Article 50 assigns duties according to the company's role and how specified AI output is presented.

      European Commission Article 50 FAQ

    • Rules for consequential decisions

      Colorado's replacement law covers technology used to make a consequential decision or materially influence one.

      Colorado Attorney General rulemaking page

    • Synthetic-content labels

      China's measure applies to the service that creates covered content and to the platform that distributes it.

      Cyberspace Administration of China measure

    • Competition powers over cloud-linked software

      A strategic-market-status designation would allow the CMA to impose later conduct requirements.

      CMA case page
  5. InstitutionsRules and enforcement

    How it works

    Authorities apply rules through their legal powers. Courts decide disputes over the resulting orders and interpretations.

    • Legislatures
    • Regulators
    • Courts
    • Public-sector buyers
    Constraint
    The authority's mandate determines which companies and conduct it can reach.
    Who decides
    An authority may issue an order or impose a licence condition. Competition law provides separate designation powers.

    Applicable rules