OpenAI faces fresh challenges after massive AI deals
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OpenAI made waves this week with several major business deals that could reshape how artificial intelligence companies build their technology. However, the company now faces the challenge of making CEO Sam Altman’s expensive plans work in reality. The company behind ChatGPT rolled out a series of partnerships this week that involve enormous amounts of money and put OpenAI at the heart of the next generation of machine learning systems. The announcements started Monday when Nvidia said it would put up to $100 billion toward helping OpenAI create data center space filled with millions of graphics processing units. The next day, OpenAI shared details about a bigger agreement with Oracle and SoftBank, expanding what they call the “Stargate” project into a $400 billion promise spread across several stages and locations. On Thursday, OpenAI added a business partnership with Databricks, showing the company wants to reach more corporate customers. The company, best known for its ChatGPT chat program and GPT language models, wants to become much more than that. OpenAI hopes to join the ranks of major cloud computing companies, even though it spends billions of dollars and depends completely on money from investors to keep growing. The company’s building plans would need enough electricity to power more than 13 million American homes. Altman has said for a long time that creating the next level of AI technology will need much more computer infrastructure than what exists now. OpenAI says it’s simply meeting customer demand, which keeps growing. The company believes these investments will eventually make money. Inside sources say OpenAI expects to bring in $125 billion in revenue by 2029, based on the company’s own predictions. Major infrastructure challenges ahead But this strategy comes with big risks when it comes to actually building everything. Creating 17 gigawatts of power capacity would…
