OpenAI on Expansion Course: Sam Altman Defends Ambitious Plans

OpenAI CEO Sam Altman shows understanding for the concerns regarding his company's rapid expansion but considers it necessary to meet the growing demand for artificial intelligence. "I completely understand that people are worried. That's very natural," Altman expressed to CNBC. OpenAI is growing faster than any other company he's ever heard of. In collaboration with Oracle, Nvidia, and SoftBank, OpenAI plans to build a network of massive data centers, which together will require 17 gigawatts of power—enough to supply over 13 million U.S. households. This expansion is necessary to handle the surge in demand for OpenAI products. For example, the use of ChatGPT has increased tenfold within 18 months. Altman emphasized that the infrastructure for AI is far more extensive than in previous technological revolutions or internet developments. Each of the planned data centers costs about 50 billion dollars, with total expenditures estimated at 850 billion dollars. According to HSBC, global investments in AI infrastructure could reach up to 2 trillion dollars. These statements come amid growing concerns that the AI industry might be in a bubble. Bain & Co. recently warned that the revenues of AI companies might not suffice to cover the enormous costs of the new data centers. According to Bain's annual Global Technology Report, revenue will fall short by about 800 billion dollars from the needed level by 2030. Although OpenAI is currently experiencing billion-dollar losses, the company expects positive cash flows by 2029. Altman admitted that power consumption is the biggest challenge but remains optimistic: "People will both lose and gain a lot of money through overinvestment or misallocation. In the long term, the value of this technology for society will be enormous.