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OpenAI pitched White House on unprecedented data centre buildout

OpenAI has pitched the Biden administration on the need for massive data centres to develop more AI models to compete with China.

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The OpenAI logo is seen in this illustration taken May 20, 2024. Photo: Reuters

OpenAI has pitched the Biden administration on the need for massive data centres that could each use as much power as entire cities, framing the unprecedented expansion as necessary to develop more advanced artificial intelligence models and compete with China.

Following a recent meeting at the White House, which was attended by OpenAI Chief Executive Officer Sam Altman and other tech leaders, the start-up shared a document with government officials outlining the economic and national security benefits of building 5 gigawatt data centres in various US states, based on an analysis the company engaged with outside experts on. To put that in context, 5GW is roughly the equivalent of five nuclear reactors, or enough to power almost 3 million homes.

OpenAI said investing in these facilities would result in tens of thousands of new jobs, boost the gross domestic product and ensure the US can maintain its lead in AI development, according to the document, which was viewed by Bloomberg News. To achieve that, however, the US needs policies that support greater data centre capacity, the document said.

Samuel Altman, CEO of OpenAI, testifies during a Senate hearing on artificial intelligence, in Washington, DC, May 16, 2023. Photo: AFP/Getty Images/TNS
Samuel Altman, CEO of OpenAI, testifies during a Senate hearing on artificial intelligence, in Washington, DC, May 16, 2023. Photo: AFP/Getty Images/TNS

Altman has spent much of this year trying to form a global coalition of investors to fund the costly physical infrastructure required to support rapid AI development, while also working to secure the US government’s blessing for the project. But the details on the energy capacity of the data centres Altman and OpenAI are calling for have not previously been reported.

“OpenAI is actively working to strengthen AI infrastructure in the US, which we believe is critical to keeping America at the forefront of global innovation, boosting reindustrialization across the country, and making AI’s benefits accessible to everyone,” a spokesperson for OpenAI said in a statement provided to Bloomberg News.

The push comes as power projects in the US are facing delays due to long wait times to connect to grids, permitting delays, supply chain issues and labour shortages. But energy executives have said powering even a single 5 gigawatt data centre would be a challenge.

Joe Dominguez, CEO of Constellation Energy, said he has heard Altman talking about building 5 to 7 data centres that are each 5GW. The document shared with the White House does not provide a specific number. OpenAI’s aim is to focus on a single data centre to start, but with plans to potentially expand from there, according to a person familiar with the matter.

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