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OpenAI’s Sam Altman dismissed as “podcasting bro” by TSMC over $7 trillion proposal

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Too formidable for his personal good: OpenAI CEO Sam Altman has been on a quest over the previous 12 months to safe trillions of {dollars} for an formidable plan – constructing huge new computing infrastructure to energy the subsequent technology of synthetic intelligence. Nonetheless, certainly one of Altman’s proposals was reportedly so outlandish that executives at TSMC mockingly referred to him as a “podcasting bro,” in response to sources.

The 39-year-old Altman has rapidly grow to be one of many world’s most influential figures in AI. The New York Occasions just lately highlighted how he has been on a worldwide tour since final 12 months, assembly with buyers within the United Arab Emirates in addition to Asian chipmakers and US officers to suggest a multi-trillion-dollar undertaking geared toward constructing chip fabs and knowledge facilities devoted to advancing AI methods.

Many had been stunned by the sheer scale of his imaginative and prescient, which seeks funding equal to roughly 1 / 4 of the US’ annual GDP. Regardless of this, Altman secured high-level conferences from the Center East to Washington D.C.

One in every of his preliminary proposals concerned the UAE funding a number of $43 billion chip factories to cut back prices for firms like TSMC and Nvidia, enabling them to considerably ramp up the manufacturing of AI chips for brand spanking new knowledge facilities.

Nonetheless, when Altman visited TSMC’s Taiwan headquarters early in his fundraising tour, he shocked the executives by claiming that it will take $7 trillion and several other years to construct the 36 fabs and knowledge facilities he envisioned. Based on The New York Occasions, one govt mentioned the concept was so “absurd” that they dismissed Altman as only a “podcasting bro.”

Within the spring, Altman and his workforce met with Japanese officers in Tokyo, proposing a daring plan: to repurpose decommissioned nuclear crops from the Fukushima catastrophe to offer a staggering 5 gigawatts of energy for brand spanking new AI data centers – about 1,000 instances the power consumption of a median facility. Based on reviews, the concept was as soon as once more met with laughter.

One other report from The Wall Avenue Journal famous that Altman was so busy pitching his imaginative and prescient globally that some present and former staffers complained he had “checked out” of OpenAI’s day-to-day operations, resulting in rushed product releases and lax security testing.

Amid rising skepticism, Altman has been pressured to cut back his ambitions to “lots of of billions” of {dollars}.

There are additionally nationwide safety issues about giving the UAE a outstanding position in growing delicate AI infrastructure, which might have financial and navy implications. Some US officers feared this may give China a backdoor to the expertise.

In response, Altman has pivoted towards specializing in constructing knowledge heart capability throughout the US. Earlier this month, he introduced a examine titled “Infrastructure Is Future” to officers at a White Home assembly. The examine outlined plans for $100 billion amenities that might home two million AI chips and devour 5 gigawatts of energy every.

All these efforts are a part of Altman’s quest to make AI computing energy as ubiquitous as electrical energy. Based on these acquainted with his personal feedback, Altman believes that simply as widespread entry to electrical energy spurred new improvements, constructing considerably extra knowledge facilities will make AI applied sciences simpler to make use of and extra accessible.

A serious driver behind this ambition is OpenAI’s staggering expenses. Whereas the corporate has generated greater than $3 billion in income from merchandise like ChatGPT, it spends roughly $7 billion yearly because of the immense computing energy required to coach massive language fashions. Based on The New York Occasions, OpenAI can be searching for to boost $6.5 billion in new funding, pushing its valuation past $150 billion.

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