Wrexis

Member
Nov 4, 2017
24,275

Late last year, Sam Altman, CEO of OpenAI, started pitching an audacious plan that he hoped would create the computing power his company needed to build more powerful artificial intelligence.

When word leaked that Altman, 39, was looking for trillions of dollars, he was mocked for seeking investments equivalent to roughly a quarter of the annual economic output of the United States. When Altman visited TSMC's headquarters in Taiwan shortly after he started his fundraising effort, he told its executives that it would take $7 trillion and many years to build 36 semiconductor plants and additional data centers to fulfill his vision, two people briefed on the conversation said. It was his first visit to one of the multibillion-dollar plants.

TSMC's executives found the idea so absurd that they took to calling Altman a "podcasting bro," one of these people said. Adding just a few more chipmaking plants, much less 36, was incredibly risky because of the money involved.

"We are not, nor have we ever been considering multitrillion-dollar projects. While the total investment needed for the global infrastructure of AI to be fully built out by everyone could cost trillions over several decades, what OpenAI is specifically exploring is on the scale of hundreds of billions," said Liz Bourgeois, an OpenAI spokesperson.

During one meeting, a Japanese official laughed when OpenAI said it was seeking 5 gigawatts of electrical power, about a thousand times the power that an average data center consumes, a person familiar with the meeting said.

So good to see this bullshit getting called out at high levels.
 

subpar spatula

Refuses to Wash his Ass
Member
Oct 26, 2017
22,517
He knows he has to have a path to profitability especially at those figures, right? Most corps or wealthy people are fine with a couple billion in loss for investments but trillions?
 

vpricot

Avenger
Oct 26, 2017
558
He knows he has to have a path to profitability especially at those figures, right? Most corps or wealthy people are fine with a couple billion in loss for investments but trillions?
I think the money matters to him in the way it matters to all billionaires. But far more importantly, these people truly believe they are building God. To them any amount of money is trivial in pursuit of this gold. It's just a tech flavored cult seeking out the Rapture.
 

RocknRola

Member
Oct 25, 2017
13,240
Portugal
I wouldn't be necessarily opposed to TSMC expanding (or similar factories being built by others, however long it took) but 7 Trillion dollars is lunacy indeed.
 

entremet

You wouldn't toast a NES cartridge
Member
Oct 26, 2017
64,692
This guy a CEO. Does he not understand basic finance lol. 7T doesn't come from the ether.
 

convo

Member
Oct 25, 2017
8,059
This number was an insult to anything with intelligence. I also think these fabs always get some crackhead at the door trying to sell the world at some interval, this latest AI thing being the latest and highest number someone came up with.
 
Oct 25, 2017
11,203
It's just 36 new semiconductor plants y'all. How hard can it be? Sure it's the most complicated technical process in the history of the world but cmon.
 

DinkyDev

The Movie Critic
Member
Feb 5, 2021
7,022
By throwing insane numbers like $7 trillion around, all he's really doing is saying to investors "look how much money is going to be in AI". He's trying to keep the grift going. This messaging is for them.
 

Orayn

Member
Oct 25, 2017
12,556
The people in charge of these stupid AI companies are about as serious as Elon Musk talking about putting people on Mars. Just say it's a solvable engineering problem and hand-wave it because you are a smart engineering technology guy who makes stuff happen.
 

DrEvil

Developer
Verified
Oct 25, 2017
2,799
Canada
During one meeting, a Japanese official laughed when OpenAI said it was seeking 5 gigawatts of electrical power, about a thousand times the power that an average data center consumes, a person familiar with the meeting said.
great-scott-gif.gif
 

ShapeGSX

Member
Nov 13, 2017
5,390
I would not expect a $7T investment to be required for AI.

But I also would not have expected Microsoft to be the sole customer for a nuclear reactor's power this year.

Absurd shit is already happening.
 

faint

Member
Oct 27, 2017
1,315
I love that this was Sam Altman. And that he was intentionally not mentioned in the title.

I would love to be a fly on the wall during this pitch.
 
OP
OP
Wrexis

Wrexis

Member
Nov 4, 2017
24,275
Is OpenAI going to rebrand now that they're taking the mask off and formally turning into a for-profit company?

Maybe the next time our least favorite podcast bro shows up to Congress he's going to do a reveal like this

View: https://giphy.com/gifs/Of35X575BJlle


Possibly, yeah.


Some tensions are related to conflicts between OpenAI's original mission to develop AI for the public good and new initiatives to deploy moneymaking products. Others relate to chaos and infighting among executives worthy of a soap opera.

CTO Mira Murati is one of more than 20 OpenAI researchers and executives who have quit this year, including several of Altman's co-founders.
 

Foolhardy

Member
May 4, 2024
1,494
Altman should have told the successful businesspeople mocking him that AI is the future and it's not going away and that they should learn to adapt and that they should stop being so dogmatic and please stop being so meeeeean.

The more these sociopathic fucks get publicly dragged, the better.
 

Magio

Member
Apr 14, 2020
656
During one meeting, a Japanese official laughed when OpenAI said it was seeking 5 gigawatts of electrical power, about a thousand times the power that an average data center consumes, a person familiar with the meeting said.

If I'm not mistaken, 5GW is roughly the average power consumption of countries like Qatar, New Zealand or Hungary. 5GW x 24 hours x 365 days = 43800GWh:

lueG3Rs.png
 

Magio

Member
Apr 14, 2020
656
Look all he's asking is enough power to supply 36 new New Zealands. It's just a minor request.
Not that it makes his requests sensible (like, at all) but I think the 5 giga watts are for the data centers be wants to build, not the 36 foundries where the chips which will power those data centers would be made.
 
Dec 4, 2017
3,174
If bro talks 7 trillion, then he certainly has 100 billion to fund Gen 4+ hybrid-nuclear reactors, to get his 5 GW of power going, right?
 
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Lilly-Anne

Member
Feb 14, 2024
949
Altman is completely deranged and the bubble burst is going to be insane. Sure, most CEOs try to sell the bullshit dream of forever growth but this guy is on another level.
 

M-M

Member
Oct 27, 2017
195
I really hope that the AI/ML bubble is the most accelerated version of Silicon Valley economics that we're going to see. I genuinely cannot imagine an understanding of money more distorted by VC funding than this.
 
Jun 19, 2020
1,216
This is what happens you're high on your own AI supply.

Dude probably thinks he is legitimately saving humanity .
If he succeeds most of us will be out of a job with no replacements. So when no one works. No one has money to buy stuff. Hows the economy going to work? UBI? lol sure the greedy are willing to share their wealth equaly.
 

eatmoreveg

Member
Aug 29, 2024
19
Look all he's asking is enough power to supply 36 new New Zealands. It's just a minor request.
No, NZ uses about 5GW at any one time. Just checking currently its using 4.98 GW (So basically 5GW, it can use more at peak and less during the night)

Actually IIRC there was a hydro plant in NZ that basically was built for a single factory (aluminium smelter) it uses 800MW (thus just under 1GW)
so something 6x as large whilst massive aint mind boggling huge. AFAIKS Theres a single factory in South Korea using 2.6 GW. So its double that.

This doesnt excuse the fact Altman is a total twat, btw he wants to be the worlds first Trillionaire
 

Mivey

Member
Oct 25, 2017
18,909
run the servers (and produce the chip for those servers) where people ask ChatGPT to automate menial tasks (and hopefully with only a couple sentences of random nonsense strewn in)
that's their only business model, that and getting idiots to pay them billions (and maybe trillions one day) to try to produce "AGI", whatever that means right now.
 

StarStorm

"This guy are sick"
Avenger
Oct 25, 2017
8,059
Seeking $7 trillion dollars is an insane amount. At least he downgraded to a few hundred billion, but still. It ain't profitable, not for a few years. 36 semiconductor plants is outrageous too.

Gotta remember to use podcasting bro.
 

dumbo11

Member
Apr 29, 2018
241
I'm not sure why people are focused on the power claims. Existing large H100 datacenters are thought to consume over 150MW each, and they are probably running at around 100% usage - for model training.

5000MW is ~30 times that... and given how badly this stuff is scaling, that does not seem an outlandish power requirement.