OpenAI commits to 'paying our own way' so that Stargate AI data centers don't increase energy bills
These agreements do not include SoftBank, though. Instead, the AI developer and Japanese financial conglomerate were still locked in talks around the same time last year. OpenAI was already planning a 1GW data center in Texas, but this was put on hold in favor of the negotiations with Oracle. When it looked at the Texas site once more, it brought on SoftBank as a partner instead of going at it alone. This wasn’t a seamless transition, though, as the two parties vied for control. Sources say that the deal was only settled after a marathon session in Tokyo at the Japanese conglomerate’s headquarters. The two parties eventually settled on a compromise — SoftBank would get to own and develop the site, but OpenAI would control its design and would have a long-term lease on the facility. Despite that, SoftBank still had to pause its planned $50 billion acquisition of data center operator Switch due to regulatory hurdles.
After months of delays, it seems that Stargate is now back on track, and the three companies are making progress on several projects. According to The Information , this isn’t exactly ideal for OpenAI, as the best-case scenario for the company is that it owns and operates all of its own data centers. Unfortunately, that is out of the question in the near future because the costs are simply too much for an institution that has yet to reach profitability . Many investors still believe in its potential, though, with the AI firm hoping to secure $100 billion in its latest funding round and hit an $800 billion valuation.
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Key considerations
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Reference reading
- https://www.tomshardware.com/tech-industry/artificial-intelligence/SPONSORED_LINK_URL
- https://www.tomshardware.com/tech-industry/artificial-intelligence/stargate-ai-data-centers-for-openai-reportedly-delayed-by-squabbles-between-partners-sources-say-openai-oracle-and-softbank-disagreed-on-who-would-have-ultimate-control-of-the-planned-data-centers#main
- https://www.tomshardware.com
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Informational only. No financial advice. Do your own research.