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OpenAI's skyrocketing spending could see billions of dollars in silicon headed down the AI mines in the next few years, including 2 million Nvidia chips headed to Texas Stargate facility
OpenAI's skyrocketing spending could see billions of dollars in silicon headed down the AI mines in the next few years, including 2 million Nvidia chips headed to Texas Stargate facility

Yahoo

time2 hours ago

  • Business
  • Yahoo

OpenAI's skyrocketing spending could see billions of dollars in silicon headed down the AI mines in the next few years, including 2 million Nvidia chips headed to Texas Stargate facility

When you buy through links on our articles, Future and its syndication partners may earn a commission. OpenAI consumes compute capacity like few have ever done before it. A recent report expects it to gorge itself on datacentre capacity and research between 2025 and 2030—burning cash at a rate of swimming pools per minute by some estimations. The Information reports that OpenAI is chasing fresh investment to allow it to expand its compute capability—buying new graphics cards, accelerators, and processors to jumpstart new AI models. The company is said to be spending around $13 billion on Microsoft-owned datacentres this year, which could rise to around $28 billion in 2028. But the love affair with Microsoft is not set to last. OpenAI says one key investor, Japan's SoftBank, could be providing $30 billion of a hopeful $40 billion it hopes to raise in coming months, with a large amount of that cash headed toward Stargate. Stargate isn't as cool as it sounds and has nothing to do with space-age Egyptian folk. It's a plan between OpenAI, Softbank, and Oracle to build out AI infrastructure in the US. As much as $500 billion worth over four years. The first site for development is in Abilene, Texas. It's called Stargate 1, and the first Nvidia GB200 racks are being installed and already running 'early' workloads at the facility. Just today, OpenAI and Oracle inked a deal to develop over 5 gigawatts of capacity at the site, which is nearly five-fold its initial expected capacity and will incorporate… 2 million chips. OpenAI isn't footing the bill for that joint venture, which has attracted investment from the company's partners, though still needs to raise more cash. All told, The Information projects OpenAI will end up burning through as much as $20 billion in cash flow in 2027, up from $2 billion in 2024. Its fees for researching and developing new models could raise up to as much as $40 billion starting in 2028. Overall, The Information projects the company will spend something like $320 billion between 2025 and 2030. Further to all of this wild internal spending, OpenAI also has the risk of further unplanned spending in the case of, well, court cases. AI companies are under constant and historical scrutiny for their use of copyright materials in training data. The UK government has waved away many complaints by artists and passed a bill that would allow some degree of usage for copyrighted materials in training AI. Not cool. Though OpenAI is facing a slew of cases in the US by authors, and The New York Times has sued the company for use of its articles in training data, too. Similar cases are ongoing against other AI providers, such as Anthropic, and Meta has already won an early case fighting over similar grounds Whether there'll be hell to pay, that's up to the judge in each case—that's just one judge for the copyright cases put forward by US authors, as the cases are now being consolidated. OpenAI has stated in response to the authors' cases that it believes its "models are trained on publicly available data, grounded in fair use, and supportive of innovation." Though admittedly these cases and any repercussions are unlikely to matter to OpenAI's bottom line either way. It's projected to earn up to $12.7 billion this year, according to The Information, and it's already roughly around the $10 billion mark, reports Reuters. That isn''t anywhere near its expenses but, hey, it's not entirely footing the bill itself. You'd think there'd be some cash spare to pay some of those rights holders too, but alas…

Oracle, OpenAI to add 4.5 gigawatts data center capacity for Stargate venture
Oracle, OpenAI to add 4.5 gigawatts data center capacity for Stargate venture

Zawya

time21 hours ago

  • Business
  • Zawya

Oracle, OpenAI to add 4.5 gigawatts data center capacity for Stargate venture

Cloud firm Oracle and OpenAI plan to develop 4.5 gigawatts of additional data center capacity, the ChatGPT developer said on Tuesday. The commitment is part of their Stargate joint venture, which aims to establish the United States as a leader in artificial intelligence amid intensifying global competition. Including a data center site in Abilene, Texas, the expansion will bring the total data center capacity under construction to more than 5 gigawatts and is expected to operate more than 2 million chips, the company said. (Reporting by Zaheer Kachwala in Bengaluru; Editing by Tasim Zahid)

OpenAI, Oracle deepen AI data center push with 4.5 gigawatt Stargate expansion
OpenAI, Oracle deepen AI data center push with 4.5 gigawatt Stargate expansion

CNA

time21 hours ago

  • Business
  • CNA

OpenAI, Oracle deepen AI data center push with 4.5 gigawatt Stargate expansion

Cloud firm Oracle and OpenAI plan to develop 4.5 gigawatts of additional data center capacity, the ChatGPT developer said on Tuesday. The commitment is part of their Stargate joint venture, which aims to establish the United States as a leader in artificial intelligence amid intensifying global competition. Including a data center site in Abilene, Texas, the expansion will bring the total data center capacity under construction to more than 5 gigawatts and is expected to operate more than 2 million chips, the company said.

OpenAI, Oracle deepen AI data center push with 4.5 gigawatt Stargate expansion
OpenAI, Oracle deepen AI data center push with 4.5 gigawatt Stargate expansion

Reuters

time21 hours ago

  • Business
  • Reuters

OpenAI, Oracle deepen AI data center push with 4.5 gigawatt Stargate expansion

July 22 (Reuters) - OpenAI and Oracle (ORCL.N), opens new tab will develop another 4.5 gigawatts of data center capacity, expanding a tie-up that has promised hundreds of billions of dollars in infrastructure investment to keep the U.S. ahead in the global artificial intelligence race. The ChatGPT maker did not disclose the locations or funding details for the new facilities in Tuesday's announcement, opens new tab. The move builds on the Stargate initiative, an up to $500 billion and 10 gigawatt project that also includes Japanese technology investor SoftBank Group (9984.T), opens new tab and is setting up its first AI data center in Abilene, Texas. OpenAI, as well as its backer Microsoft (MSFT.O), opens new tab, are among the technology companies pouring billions of dollars on data centers to power generative AI services such as ChatGPT and Copilot that require huge amounts of computing power. The growing use of AI in sensitive sectors such as defense, as well as China's push to catch up, has made the nascent technology a top priority for U.S. President Donald Trump, who unveiled Stargate at the White House in January. The new data centers will bring Stargate's total capacity under development to more than 5 gigawatts, which will run on over 2 million chips, OpenAI said in a blog post, adding that the tie-up now expects to exceed its initial commitment. Oracle and SoftBank did not immediately respond to requests for comment. The White House also did not immediately respond to a request for comment. Analysts have raised doubts about the venture's ability to secure the funding, including $100 billion for immediate deployment. In January, xAI owner Elon Musk, dismissed the group, saying "they don't actually have the money." OpenAI and SoftBank will each commit $19 billion to fund Stargate, reports said in January. The Wall Street Journal reported on Monday the two companies have been at odds with each other and Stargate is now setting a more modest goal of building a small data center at end-2025, likely in Ohio.

Oracle, OpenAI to add 4.5 gigawatts data center capacity for Stargate venture
Oracle, OpenAI to add 4.5 gigawatts data center capacity for Stargate venture

Yahoo

timea day ago

  • Business
  • Yahoo

Oracle, OpenAI to add 4.5 gigawatts data center capacity for Stargate venture

(Reuters) -Cloud firm Oracle and OpenAI plan to develop 4.5 gigawatts of additional data center capacity, the ChatGPT developer said on Tuesday. The commitment is part of their Stargate joint venture, which aims to establish the United States as a leader in artificial intelligence amid intensifying global competition. Including a data center site in Abilene, Texas, the expansion will bring the total data center capacity under construction to more than 5 gigawatts and is expected to operate more than 2 million chips, the company said. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

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