Silicon Valley flooded the news this week with headlines on wild AI infrastructure investment.
Nvidia said it would invest up to $100 billion in Openai. Openai has since said it will build five more Stargate AI data centers with Oracle and SoftBank, adding new capacity gigawatts online over the next few years. It was later revealed that Oracle sold $18 billion in bonds to pay for these data centers.
In itself, each transaction is dizzy in scale. But collectively, we see how Silicon Valley can move the heavens and the earth to give Openai enough power to train and provide future versions of ChatGpt.
In Equity this week, Anthony HA and I (Max Zeff) go beyond the headlines to break down what’s really happening in these AI infrastructure transactions.
Rather conveniently, Openai gave a glimpse into the world this week a power-intensive feature that allows it to serve more widely if it has access to more AI data centers.
The company has launched Pulse. This is a new feature in ChatGpt that works overnight to provide users with a personalized morning briefing. I feel this experience is similar to a news app or a social feed (the first thing you check in the morning), but there are no posts from other users or ads (yet).
Pulse is part of a new class of OpenAI products that work independently, even if the user is not in the ChatGPT app. The company wants to deliver these features to more and deploy them to free users, but is limited by the number of computer servers available. Openai said that due to capacity constraints, it can only offer pulses to Pro subscribers currently at $200.
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The real question is whether features like Pulse are worth the hundreds of millions of dollars invested in AI data centers to support Openai. The features look cool and everything, but it’s a tall order.
Watch the entire episode and hear more about the massive AI infrastructure investments reshaping the owners of Silicon Valley, Tiktok, and policy changes that will affect the biggest players of technology.
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