The data center gold rush hinges in part on the idea that models will improve in line with the laws of scaling—so long as they’re trained on more data and compute. “There’s this basic story that scale is the thing, and that’s been true for a while, and it might still be true,” In September 2013, Jonathan Koomey, a professor visiting at UC Berkeley, who is an expert in computing efficiency and data centers, spoke to WIRED about the importance of an efficient datacenter. OpenAI-Oracle deal Create three new datacenter sites “That’s the bet that many of the US AI companies are making.”
Derek Thompson, a prominent economics reporter, noted in a recent post that the tech industry is projected to spend around $400 billion on AI infrastructure this year—while demand for AI services from US consumers stands at just about $12 billion a year, according to one study.
OpenAI already had a relationship of strategic importance with AMD before today’s announcement. Altman joined Su briefly on the stage at AMD’s Advancing AI in Silicon Valley event in June. Su stated that AMD had been receiving feedback from its customers as it designed the MI400 chips for the past few years, with OpenAI being one of them.
Altman stated on stage the move to reasoning models in AI has put pressure on model-makers, both for efficiency and long context deployments. He also noted that OpenAI must be able to cope with this. “tons of compute, tons of memory, and tons of CPUs,” The generative AI market is heavily reliant upon Nvidia’s GPUs.
Su described Altman at the event as an “great friend” Then, you can. “icon in AI.”
Lauren Goode has contributed to the report.
