What’s behind the massive AI data center headlines?

Silicon Valley flooded the information this week with headlines about wild AI infrastructure investments.

Nvidia mentioned it would invest up to $100 billion in OpenAI. Then OpenAI mentioned it could construct out five more Stargate AI data centers with Oracle and Softbank, including gigawatts of latest capability on-line within the coming years. And it was later revealed that Oracle sold $18 billion in bonds to pay for these knowledge facilities.

On their very own, every deal is dizzying in scale. However in mixture, we see how Silicon Valley is shifting heaven and Earth to present OpenAI sufficient energy to coach and serve future variations of ChatGPT.

This week on Equity, Anthony Ha and I (Max Zeff) transcend the headlines to interrupt down what’s actually occurring in these AI infrastructure offers.

Moderately conveniently, OpenAI additionally gave the world a glimpse this week of a power-intensive function it may serve extra broadly if it had entry to extra AI knowledge facilities.

The corporate launched Pulse — a brand new function in ChatGPT that works in a single day to ship customized morning briefings for customers. The expertise feels much like a information app or a social feed — one thing you verify very first thing within the morning — however doesn’t have posts from different customers or adverts (but).

Pulse is a part of a brand new class of OpenAI merchandise that works independently, even when customers aren’t within the ChatGPT app. The corporate wish to ship much more of those options, and roll them out to free customers, however they’re restricted by the variety of pc servers out there to them. OpenAI mentioned it might probably solely provide Pulse to its $200-a-month Professional subscribers proper now on account of capability constraints.

The actual query is whether or not options like Pulse are definitely worth the tons of of billions of {dollars} being invested in AI knowledge facilities to help OpenAI. The function appears to be like cool and all, however that’s a tall order.

Watch the total episode to listen to extra in regards to the huge AI infrastructure investments reshaping Silicon Valley, TikTok’s possession saga, and the coverage adjustments affecting tech’s largest gamers.