OpenAI’s new data center in Abilene, Texas, featuring extensive Oracle and Nvidia infrastructure, faces scrutiny amid investor concerns about the AI firm’s sustainability. This facility, critical for powering ChatGPT, launched alongside a significant dip in shares for Nvidia and Oracle, contrasting with a prior spike following their $100 billion partnership announcement. Investors are questioning the viability of OpenAI’s trajectory, particularly regarding energy sourcing and the echo of the Dotcom bubble. Adding to the uncertainty, U.S. Federal Reserve Chair Jerome Powell highlighted overvalued equity prices and potential stagflation risks. Despite these challenges, OpenAI CEO Sam Altman remains in a strong position, attracting substantial interest from investors. The $100 billion deal was negotiated through intensive virtual discussions and personal meetings between Altman and Nvidia CEO Jensen Huang just before the data center unveiling. This strategic partnership positions OpenAI at the forefront of AI infrastructure development.
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