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When Code Consumes: The Environmental Toll of AI

AI's Growing Footprint: Energy, Water, and Carbon in the Age of Machine Learning

Last updated:

Mackenzie Ferguson

Edited By

Mackenzie Ferguson

AI Tools Researcher & Implementation Consultant

A new report delves deep into the environmental costs of AI, revealing the startling energy, water, and carbon footprints of models like OpenAI's o3 and DeepSeek's reasoning behemoth. The study uncovers the vast differences in eco-efficiency among AI models, calling for increased transparency and innovation towards sustainable artificial intelligence.

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Introduction to AI's Environmental Impact

The increasing reliance on artificial intelligence (AI) technologies has brought about significant discussions on their environmental impact. According to a Fast Company article, the energy, water, and carbon footprint of AI models are drawing attention, as these technologies demand substantial resources. For instance, OpenAI's o3 and DeepSeek's main reasoning model are identified as major energy consumers, even exceeding those of smaller models such as GPT-4.1 nano. This disparity highlights the need for industry-wide transparency and acknowledgment of these environmental costs, which often go unaccounted for in the drive for higher performance metrics. For more information, refer to this comprehensive examination of AI's environmental impact [here](https://www.fastcompany.com/91336991/openai-anthropic-deepseek-ai-models-environmental-impact).

    A crucial aspect of AI's ecological footprint is the consumption of water, particularly for cooling vast data centers that power these technologies. The report notes that models like ChatGPT-4o have water usage levels that equate to the annual drinking needs of approximately 1.2 million people. To put it into perspective, such levels of water consumption indicate a pressing need for efficient water management and innovative cooling solutions in the AI industry. Beyond this, the energy requirements for running AI models like GPT-4o, which could reach between 392 and 463 gigawatt hours per year, underline the substantial energy footprint tied to frequent AI query handling.

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      As these statistics reveal, the hardware used in training and deploying AI models, such as older GPUs like A100, significantly contribute to energy consumption and thus, the environmental impact. Efficiency in processing, alongside the complexity and length of AI queries, further exacerbates this problem. Public and expert calls for sustainable AI development are mounting, advocating for improvements in both the hardware and algorithms to reduce running costs and, consequently, their environmental toll. It's important for companies to prioritize reducing the carbon footprint of AI models, considering not just the immediate environmental impact, but also long-term sustainability. Explore more about this in related discussions on AI's energy footprint [here](https://www.technologyreview.com/2025/05/20/1116327/ai-energy-usage-climate-footprint-big-tech).

        Key Findings from the Recent Study

        The recent study on environmental impacts of AI models reveals crucial insights into the consumption patterns of some of the most advanced technologies today. Focusing on models such as OpenAI's o3 and DeepSeek's main reasoning model, the study highlights their significant energy consumption compared to smaller models like GPT-4.1 nano. This disparity in energy use raises concerns, especially as AI continues to scale and integrate into various sectors. The highlighted models consume large amounts of energy, water, and generate a substantial carbon footprint, underscoring the urgent need for industry-wide shifts towards more sustainable practices.

          Experts emphasize that key factors contributing to these impacts include the hardware employed and the length of the AI queries. For instance, older GPUs like the A100 are more energy-intensive, and longer queries exacerbate the environmental footprint. Alarmingly, the study estimates that ChatGPT-4o's annual water consumption surpasses the drinking needs of 1.2 million people. This review has led to increased calls for transparency from AI companies regarding their environmental impacts and has sparked discussions on potential regulations.

            The findings underscore the paradox of AI advancement: while pushing technological boundaries, there is a significant oversight of its environmental costs. These costs, often overshadowed by performance metrics, propose a new challenge for regulators and stakeholders who must balance innovation with sustainability. The increase in energy and water consumption demands an industry-wide dialogue to redefine success metrics in AI development beyond mere technological prowess to include environmental stewardship.

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              One of the most eco-efficient models identified is Anthropic’s Claude-3.7 Sonnet, showcasing that achieving efficiency is possible within AI's rapid evolution. This discovery paves the way for more targeted efforts in optimizing AI models for better environmental performance. As these discussions progress, the importance of collaboration between policymakers, innovators, and environmentalists becomes evident, potentially leading to a new era of AI that prioritizes ecological mindfulness alongside technological innovation.

                The study's revelations are timely, coinciding with events like the US AI & Energy Summit, which brings together leaders to explore AI's role in modernizing energy infrastructure. Such platforms may foster the creation of robust strategies that leverage AI for energy efficiency improvements across industries. Indeed, as future developments and policies take shape, these findings will likely serve as critical reference points for minimizing AI's environmental footprint while maximizing its potential benefits.

                  Comparative Analysis of AI Models

                  The environmental impact of artificial intelligence (AI) models has become a critical area of concern as technology continues to advance at a breakneck speed. In recent analyses, it has been highlighted that larger AI models like OpenAI's o3 and DeepSeek's main reasoning model demand significantly more energy and resources compared to smaller counterparts such as GPT-4.1 nano. This differential in resource consumption underscores the urgent need for sustainable practices in AI development. A Fast Company article, published on May 20, 2025, brought this issue to the forefront, shedding light on the energy, water, and carbon footprints of leading AI models. It emphasized that these impacts are rarely disclosed, often overshadowed by the models' performance metrics. For instance, ChatGPT-4o alone was reported to have an annual water consumption equivalent to the drinking needs of 1.2 million people, highlighting a stark reality about resource use in AI development ().

                    The study on AI models also touches upon various factors contributing to their environmental impact, such as the type of hardware utilized and the length of the queries processed. Models that rely on older, less efficient GPUs like the A100 tend to consume more energy, compounding their environmental footprint. Additionally, longer and more complex queries further exacerbate power consumption. This linkage between AI computational processes and environmental strain is a growing concern among experts, pushing for greater transparency and innovation in AI technology to mitigate its ecological effects. In terms of energy consumption, researchers estimate that by handling approximately 700 million calls per day, GPT-4o's annual energy use could rival the electricity needed to power 35,000 American homes ().

                      Anthropic's Claude-3.7 Sonnet emerges as one of the most eco-efficient models assessed in recent studies, standing out due to its relatively lower energy and resource demands compared to other large-scale AI models. This distinction not only points to a potential model for sustainable AI design but also reflects the imperative for developers to focus on balancing innovation with environmental responsibility. As AI continues to be integral to various industries, the call for eco-efficient models becomes essential to reduce the technological sector's carbon footprint and lessen the global dependency on resources for AI-related operations ().

                        Factors Contributing to Environmental Impact

                        The environmental impact of AI technologies is a multifaceted issue with several contributing factors. According to a Fast Company article, the energy consumption of AI models is highly dependent on the size and structure of the model itself. For instance, larger models like OpenAI's o3 and DeepSeek's main reasoning model consume significantly more energy compared to smaller models such as GPT-4.1 nano . This disparity is largely due to the computational power required to process complex queries and generate results, which increases with the model's size and complexity.

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                          Hardware also plays a crucial role in the environmental impact of AI systems. Older hardware, such as the A100 GPUs, is known to consume more energy, thereby exacerbating the carbon footprint . Upgrading to newer, more energy-efficient processors can mitigate some of these impacts, but the rapid pace of AI development often leads to significant pressure on existing infrastructure, highlighting the need for continuous innovation in hardware technology.

                            Water consumption is another critical factor to consider when evaluating AI's environmental impact. AI models like ChatGPT-4o have substantial water requirements, primarily for cooling purposes. This water usage is so extensive that it equates to the annual drinking needs of approximately 1.2 million people . Such extensive use of water resources underscores the pressing need for more sustainable cooling techniques in data centers.

                              Moreover, the process of manufacturing and disposing of AI hardware contributes to electronic waste, which often contains hazardous materials. This aspect of AI technology extends its environmental impact beyond energy and water use, raising concerns about the sustainability of AI advancements . These challenges call for a holistic approach to assessing and mitigating the environmental costs of AI, balancing the technological benefits with environmental responsibility.

                                Energy and Water Consumption of AI Models

                                The environmental impact of AI models, especially concerning their energy and water consumption, has emerged as a critical area of study. The Fast Company article sheds light on this pressing issue, drawing attention to the staggering resource use by advanced AI models such as OpenAI's o3 and DeepSeek's primary reasoning model. These models are found to consume more energy, often because of their expansive computational needs, than smaller, more efficient models like GPT-4.1 nano [1](https://www.fastcompany.com/91336991/openai-anthropic-deepseek-ai-models-environmental-impact). The revelation underscores a growing necessity for transparency in disclosing the environmental costs of AI technologies, which have traditionally been overshadowed by performance metrics.

                                  AI models necessitate substantial energy, creating a notable carbon footprint. This is primarily due to the high power demands during both the training and operational phases of these models. Technologies like ChatGPT-4o reveal the extent of resource usage, with its annual water consumption already equated to the drinking needs of 1.2 million people [1](https://www.fastcompany.com/91336991/openai-anthropic-deepseek-ai-models-environmental-impact). As highlighted in a study, the length of queries processed by these AI systems further exacerbates energy consumption, reinforcing the correlation between increased computational requirements and environmental impacts.

                                    The water and energy consumption of these AI models presents significant socio-economic and political challenges. Economically, the resource-intensive nature of models like OpenAI’s o3 could drive operating costs upwards, influencing investment towards more sustainable AI solutions. On a societal level, there could be a shift in consumer behavior as awareness increases about the environmental toll of AI, pushing demand towards eco-friendly technologies [1](https://www.fastcompany.com/91336991/openai-anthropic-deepseek-ai-models-environmental-impact). Politically, there may be a push for regulations that mandate the disclosure of AI's environmental footprint, potentially fostering international collaboration to mitigate these impacts.

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                                      The discourse around AI's environmental impact is increasingly contextualized within broader concerns about climate change. As data centers, which form the backbone of AI infrastructure, continue to grow, their energy and water demands escalate, contributing significantly to greenhouse gas emissions. Research highlights that the infrastructure supporting AI is not just energy and water-intensive, but also has far-reaching implications for e-waste through the continual updating and disposing of hardware [2](https://www.unep.org/news-and-stories/story/ai-has-environmental-problem-heres-what-world-can-do-about). These mounting environmental concerns prompt experts and policymakers to advocate for a comprehensive approach to integrating sustainability within the rapidly advancing field of artificial intelligence.

                                        Transparency and Sustainability in AI Industry

                                        The growing awareness around the environmental costs of AI models has brought transparency and sustainability to the forefront of industry discussions. As detailed in an article by Fast Company, the energy consumption, water usage, and carbon footprint of developing and running AI models are significant concerns. For instance, the study highlighted in the article reveals that a single year of operating ChatGPT-4o equates to the annual drinking water needs of 1.2 million people. Such startling figures underscore the urgency for the AI industry to prioritize transparency about these environmental impacts while striving for sustainable practices. [Source](https://www.fastcompany.com/91336991/openai-anthropic-deepseek-ai-models-environmental-impact)

                                          Efforts to ensure sustainability in AI are not only a matter of corporate responsibility but also of strategic importance. Companies like Anthropic, which have developed models such as Claude-3.7 Sonnet, recognized as the most eco-efficient, demonstrate that it's possible to balance performance with environmental consciousness. As AI continues to evolve, there's a pressing need for models that don't just excel in computational efficiency but also minimize ecological footprints. This shift not only appeases growing consumer demands for sustainability but also mitigates potential regulatory pressures that might arise as governments across the globe, like those in attendance at the US AI & Energy Summit, push for greener technologies. [Source](https://www.fastcompany.com/91336991/openai-anthropic-deepseek-ai-models-environmental-impact) [Source](https://techforclimateaction.com/aiandenergy/)

                                            The call for greater transparency in AI's environmental cost is echoed throughout the tech community and beyond. Tech giants and startups alike are being urged to disclose the energy and resource consumption of their AI deployments, as well as the measures they are taking to mitigate these impacts. This aligns with broader public expectations for corporate transparency and accountability, ideals that, if upheld, could lead to more informed consumer choices and drive market preference towards more sustainable options. Open discussions about AI's environmental impact could lead to innovative solutions, like improving the energy efficiency of data centers, which is emphasized by recent University of York research on how data centers' intensive resource use contributes to greenhouse gas emissions. [Source](https://www.york.ac.uk/news-and-events/news/2025/research/decarbonising-digital-infrastructure/)

                                              A future where AI aligns with sustainable practices involves both technological innovation and policy intervention. As the industry pushes the boundaries of what AI can achieve, experts argue that development must proceed at a sustainable pace to avoid unsustainable energy demands and e-waste. International cooperation could pave the way for standardized metrics and sustainability goals, integrating AI advancements with climate action plans. Engaging with these challenges not only requires commitment from the tech industry but also active participation from policymakers to foster environments where sustainable AI practices can flourish. This vision underscores the potential for AI to be part of the solution to environmental challenges rather than a contributor. [Source](https://www.fastcompany.com/91336991/openai-anthropic-deepseek-ai-models-environmental-impact)

                                                Impact of AI Model Hardware and Query Length

                                                The impact of AI models on the environment is intricately linked to the type of hardware used and the length of queries processed. Large-scale AI models, such as OpenAI's o3, require substantial computational resources, leading to significant energy and water consumption. The Fast Company article highlights that the o3 model's annual water usage is equivalent to the drinking needs of 1.2 million people, underscoring the environmental cost of operating such extensive systems . Moreover, the carbon footprint of AI models is not just a consequence of training but continues with each query processed. This necessitates a reevaluation of AI's ecological impact, particularly concerning older, energy-intensive hardware like the A100 GPUs which exacerbate these issues.

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                                                  Query length is another critical factor affecting the environmental footprint of AI models. Longer queries require more processing power, leading to higher energy consumption and emissions. The study mentioned in the Fast Company article reveals that even modifications in query efficiencies can lead to significant reductions in resource usage . With AI models like GPT-4o potentially consuming up to 463 gigawatt-hours annually, equivalent to the energy usage of tens of thousands of homes, optimizing query length and processing efficiency could present substantial environmental benefits.

                                                    This concern over query length and hardware is part of a larger dialogue about sustainable AI development. At the US AI & Energy Summit, experts discussed strategic initiatives for optimizing energy use in data centers, which house and operate these AI models. Such discussions drive home the importance of integrating eco-friendly practices into AI development, inspiring innovation in both hardware design and algorithm efficiency . By shifting towards more sustainable practices, the AI industry can mitigate its environmental impact while still advancing technological capabilities.

                                                      Public Concerns and Awareness

                                                      Public concerns about the environmental impact of AI models have significantly increased, especially as new information emerges about the substantial energy, water, and carbon footprints of these models. The Fast Company article highlights the energy-intensive nature of AI models developed by companies like OpenAI and DeepSeek, drawing attention to the high energy and water consumption of models such as ChatGPT-4o. The annual water usage of this model alone is equivalent to the drinking needs of 1.2 million people, sparking worries about resource usage and sustainability. Such statistics are becoming focal points for public debates, urging AI companies to reconsider how they measure success, emphasizing performance metrics alongside environmental costs .

                                                        As public awareness grows, there is a shifting attitude towards demanding transparency about the environmental consequences of AI technologies. Consumers and advocacy groups are increasingly pushing for tech companies to disclose their energy consumption data, as transparency is crucial for informed decision-making and accountability. This transparency is seen not just as a corporate social responsibility but as a vital step towards creating sustainable practices within the technology sector. This rising awareness and demand for transparency contribute to broader societal calls for regulatory changes to ensure AI technologies do not compromise environmental sustainability .

                                                          The public's growing concerns reflect a broader apprehension about the unchecked expansion of AI technologies and their ecological costs. There is a tangible fear that without conscientious efforts to mitigate these impacts, AI's development will accelerate global environmental issues, particularly in terms of carbon emissions and water usage. This situation is further complicated by the current lack of comprehensive regulations targeting the ecological implications of AI, leading to calls for policy advancements that can guide the sustainable evolution of AI and related technologies .

                                                            Future Implications on Economy and Society

                                                            The future implications of AI's environmental impact present an intricate interplay between economy and society. As AI models increase in complexity, the energy they consume could result in higher operational costs. This might lead companies to invest more in sustainable AI solutions, thereby expanding new markets for eco-friendly technologies. According to a Fast Company article, models such as OpenAI's o3 demand significant resources, potentially decelerating AI advancements until more energy-efficient technologies are developed ().

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                                                              Socially, there is a growing awareness of the environmental cost of AI, which could alter consumer behavior. This shift may reduce demand for unsustainable AI and increase expectations for transparency and the adoption of eco-friendly practices. The article also suggests that the public might push for stricter regulations to mitigate such environmental impacts (). Significant resource usage, such as the equivalent water consumption of providing for 1.2 million people's drinking needs by ChatGPT-4o, underscores this societal shift ().

                                                                Politically, the environmental impact of AI could lead to increased governmental regulations mandating the disclosure of AI's energy and resource consumption. The potential for international collaborations on sustainability measures might foster standardized approaches to measure AI's ecological footprints. Furthermore, as AI technology develops, countries might experience intensified geopolitical tensions over access to essential resources required for AI infrastructure ().

                                                                  Political and Regulatory Considerations

                                                                  As AI technologies continue to evolve, political and regulatory landscapes must adapt to address the emerging environmental concerns associated with these innovations. The significant energy consumption of AI models, as highlighted in the Fast Company article, has not only economic but vast regulatory implications. For instance, governments could follow the model set forth at events such as the US AI & Energy Summit, where policymakers gather to discuss modernizing energy infrastructures to accommodate AI advancements. Such meetings are critical in shaping a national strategy that promotes the development of eco-efficient AI while balancing energy demands [source](https://techforclimateaction.com/aiandenergy/).

                                                                    Political actions will likely focus on increasing transparency in AI development. The Fast Company article emphasizes the need for open discussion regarding the environmental costs of running advanced AI models like OpenAI's o3 and others. This could prompt new regulations mandating detailed reporting of AI's energy and water usage. The track record of different corporations might influence regulatory bodies to enforce stricter guidelines that ensure entities move towards sustainable practices and report their environmental impact [source](https://www.fastcompany.com/91336991/openai-anthropic-deepseek-ai-models-environmental-impact).

                                                                      Regulations could extend beyond domestic policies, fostering international collaboration. Global efforts might standardize measurements of AI's environmental footprint, as nations collectively work to mitigate the carbon emissions caused by AI technologies that the Technology Review highlights. Efforts to integrate a climate amendment into the AI Bill of Rights reflect growing awareness and responsive action to address both energy consumption and the environmental impacts of AI technologies. Such international consensus is crucial to create uniform policies and encourage global cooperation [source](https://www.technologyreview.com/2025/05/20/1116274/opinion-ai-energy-use-data-centers-electricity/).

                                                                        Moreover, the production of AI hardware and its associated e-waste present significant regulatory challenges. UNEP's discussions around the environmental issues presented by AI [source](https://www.unep.org/news-and-stories/story/ai-has-environmental-problem-heres-what-world-can-do-about) highlight the necessity for policies that oversee not only AI operation but also its entire lifecycle. These include manufacturing and disposal procedures of AI hardware, encouraging companies to innovate in building more environmentally friendly hardware alternatives and developing effective waste management solutions. Such regulations are intended to curb the adverse effects of e-waste and to influence eco-friendly practices across industries.

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                                                                          Technological Innovations for Sustainable AI

                                                                          The surge in artificial intelligence technologies has rapidly transformed numerous industries, yet it comes with significant environmental implications. A critical concern revolves around the sustainability of AI, particularly in terms of energy consumption and its carbon footprint. AI models such as OpenAI's o3 and DeepSeek's main reasoning model have been identified as heavy energy consumers when compared to smaller counterparts like GPT-4.1 nano. These large models demand substantial electricity, leading to increased carbon emissions. Moreover, the hardware used in AI, such as older GPU models, can dramatically affect energy efficiency and environmental impact, as highlighted in a recent study on arXiv [here](https://www.fastcompany.com/91336991/openai-anthropic-deepseek-ai-models-environmental-impact).

                                                                            Efficient model design and strategic computational practices are pivotal to minimizing the environmental footprint of AI technologies. The usage of state-of-the-art hardware, as opposed to outdated systems like the A100 GPUs, can contribute significantly to this goal. Furthermore, optimizing the length of queries processed by AI models can help reduce their energy consumption. However, it is not merely about the technology itself but also about cultivating an ecosystem that prioritizes sustainability. Experts emphasize the unsustainable pace of AI development due to its high energy demands, which can lead to substantial carbon dioxide emissions, as discussed in the MIT News [article](https://news.mit.edu/2025/explained-generative-ai-environmental-impact-0117).

                                                                              Beyond energy consumption, AI's environmental toll includes significant water and electronic waste challenges. For instance, ChatGPT-4o's annual water consumption equals that needed for the drinking requirements of 1.2 million people, a startling statistic that underscores the hidden costs of AI advancements. This consumption comes primarily from the cooling requirements of data centers housing these AI models, as reported in a Fast Company [article](https://www.fastcompany.com/91336991/openai-anthropic-deepseek-ai-models-environmental-impact). Additionally, the production and disposal of electronic components contribute to growing e-waste, often laced with hazardous materials, which further emphasizes the need for sustainable innovation in the AI sector.

                                                                                There's a growing call for transparency regarding the environmental costs associated with AI. As debates continue over AI's future carbon footprint and water usage implications, public awareness is increasingly vital. Activism may play a pivotal role in pushing for more eco-friendly practices and stringent regulations. Indeed, such regulations and sustainability efforts need to be cooperatively international, setting standardized measures for AI's environmental impact. Potentially, this drive could elicit a global strategy akin to calls detailed in the Technology Review [articles](https://www.technologyreview.com/2025/05/20/1116274/opinion-ai-energy-use-data-centers-electricity/) focusing on AI's climate footprint.

                                                                                  Economically, AI's environmental impact could lead to increased operational costs, nudging investments towards entities that prioritize green solutions. This shift could open new markets for sustainable AI technologies, providing economic incentives for innovation. As companies and governments become more cognizant of AI's environmental ramifications, there might be a stronger lean towards models that exhibit ecological efficiency, such as Anthropic's Claude-3.7 Sonnet, famously noted for its eco-efficiency in recent studies [here](https://www.fastcompany.com/91336991/openai-anthropic-deepseek-ai-models-environmental-impact). In the political arena, these dynamics might incentivize stricter regulations and possibly greater geopolitical collaboration and tension around the resources needed for AI development.

                                                                                    Conclusion and Call for Action

                                                                                    The Fast Company article meticulously lays out the pressing environmental challenges posed by AI models, urging the industry to take immediate corrective action. As we stand on the brink of an AI-driven future, it is imperative for companies to realize the environmental implications of their innovations. AI models like OpenAI's o3, while groundbreaking, come with a hefty carbon and water footprint that cannot be ignored (). The potential to power 35,000 homes annually is an energy consumption figure that should serve as a wake-up call for developers worldwide.

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                                                                                      As highlighted during the US AI & Energy Summit, the need for a balanced integration of AI into existing energy frameworks is critical. Policymakers and tech innovators must collaborate to craft policies that not only foster AI development but also minimize its environmental impact (). This means investing in green data centers, optimizing AI algorithms for support, and leveraging smarter cooling technologies.

                                                                                        Moreover, consumer and corporate responsibility should drive a call to action. Global awareness about AI's environmental costs can potentially reshape market demand, pushing companies toward sustainable practices. The recognition of AI's extensive water needs, particularly with models like ChatGPT-4o, should prompt reevaluation of resource allocation strategies (). A pivot towards eco-friendly alternatives is not only responsible but essential for long-term viability in tech innovations.

                                                                                          Finally, there lies an opportunity for governments worldwide to play an influential role by enforcing transparency requirements and fostering international cooperation on AI's environmental footprint. Standardizing impact measurements and cross-border efforts can pave the road toward a sustainable AI-driven technology landscape. The time to act is now, and the success of this endeavor largely depends on the cooperation and commitment of all stakeholders involved ().

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