There are currently problems that is pushing the envelope of computational power, i.e., MD simulation (see D.E Shaw Research), engineering simulation on jet eng

There are currently problems that is pushing the envelope of computational power, i.e., MD simulation (see D.E Shaw Research), engineering simulation on jet engines (see Pratt & Whitney) - even state of art of Infiniband clusters and custom-designed chips cannot simulate more than 10 seconds of molecular interactions or the complete fluid dynamics of a jet engine under a reasonable time-frame. You are however right in the sense that AI can't be achieved by tossing more CPU power. Almost all of the media hype on the Deep Blue Chess Playing or hedge fund black boxes are all narrow AI, that is, programs that look "smart" because human beings have painstakingly poured so many techniques into a specific and narrow problem-space. We have yet to come up with a artificial general intelligence (AGI). For those who are interested in AGI, check out: http://www.agi-09.org/ http://www.agi-09.org/ and http://journal.agi-network.org/ http://journal.agi-network.org/ .