OpenAI’s CEO Sam Altman has announced plans for data centers that could consume more electricity than major U.S. cities, emphasizing the need for this infrastructure to support next-gen AI models. These facilities, potentially requiring up to 5 gigawatts per site, are part of OpenAI’s $500 billion Stargate project, with the first center operational in Texas. Collaborations with Oracle and SoftBank aim to invest up to $400 billion over five years, generating 25,000 new jobs while raising concerns about energy demands on local resources. The strategy reflects a circular economy between AI developers and hardware suppliers like Nvidia. Critics highlight the environmental impact, but proponents believe AI advancements could outweigh costs. OpenAI is lobbying for regulatory support, exploring nuclear and renewable energy to meet requirements amidst pressing energy challenges. The outcome may shape the future landscape of AI, influencing fields like drug discovery and climate modeling, underscoring the geopolitical stakes in the AI arms race.
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