Better Offline SoftBank and OpenAI's Dangerous Game
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Mar 14, 2025 The podcast dives into the precarious financial partnership between SoftBank and OpenAI, highlighting the dangers of pouring funds into a struggling startup. It sheds light on OpenAI's Stargate project and the complexities of building AI infrastructure amid looming debts. Critical reflections question the sustainability of their deal and mention the societal implications of AI advancements. Furthermore, the discussion uncovers the challenges of securing funding while addressing the disconnect between innovation and practical application in the tech landscape.
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Microsoft's Data Center Pullback
- Microsoft drastically reduced data center capacity, resembling London or Tokyo's worth.
- This signals trouble for generative AI, especially OpenAI, indicating a potential bubble implosion.
OpenAI's Stargate Project
- OpenAI's Stargate project aims to build data centers and power generation for AI, costing $100-500 billion.
- The first data center in Texas, needing a gigawatt of power and a gas power station, faces permitting delays.
Funding Issues
- OpenAI and SoftBank committed to Stargate, yet both seemingly lack the funds.
- OpenAI seeks $40 billion at a decreasing valuation, and SoftBank may borrow $24 billion for AI investments.