OpenAI Invests 10 Trillion Yuan in Global AI Data Center Expansion

OpenAI has unveiled an ambitious plan to expand its global computing power, with an investment of up to 10 trillion yuan. The initiative aims to construct an extensive network of AI data centers, positioning the company to become a leader in AI infrastructure. The first phase of this project is already underway in a sprawling data center complex located west of Dallas, Texas. This site, which spans an area equivalent to New York's Central Park, is set to become the world's largest AI supercomputing center upon completion.

The construction site is bustling with activity, as eight state-of-the-art data centers are being built. These facilities will have a combined capacity of approximately 900 megawatts, with over 6,000 workers on site daily. The project includes backup power systems, ensuring uninterrupted operation. OpenAI has partnered with Oracle and SoftBank to announce plans for an additional five data centers in the United States, adding nearly 7 gigawatts of capacity. This expansion is expected to provide enough power for approximately 8 million households.

OpenAI's rapid growth, driven by the surging demand for products like ChatGPT, which now has over 700 million weekly active users, has necessitated this significant investment in computational power. The company anticipates needing more than 20 gigawatts of capacity in the near future, with the potential to scale up to 100 gigawatts. This investment could surpass the annual GDP of countries like Japan or Germany.

The first completed data center, "Building 1," is equipped with tens of thousands of NVIDIA GB200 GPUs, each valued at nearly the price of a Tesla Model 3. Security measures are stringent, with continuous monitoring to prevent potential industrial espionage. While the construction phase has created numerous temporary jobs, the long-term operational needs are more modest. Oracle estimates that the completed site will provide around 1,700 permanent positions. Local officials in Texas have welcomed the project, citing its potential to drive industrial upgrades and economic revitalization in the region.

This expansion plan is part of a broader trend in the tech industry, where companies are heavily investing in AI infrastructure to maintain competitiveness. The collaboration between OpenAI and NVIDIA, which includes a strategic partnership and significant investment, underscores the critical role of computational power in advancing AI technologies. The partnership aims to develop data centers with at least 10 gigawatts of capacity, equipped with NVIDIA's advanced chips for training and deploying AI models. The investment will be phased, with the initial 100 billion yuan provided upon signing the agreement, followed by additional investments as each gigawatt of computational power is deployed.

NVIDIA's contribution will include cash investments, granting the company a stake in OpenAI. This collaboration is expected to drive innovation and set new standards for computational power in the AI industry. The scale of this investment is unprecedented, with 10 gigawatts of computational power equivalent to the peak electricity demand of New York City. The CEO of NVIDIA emphasized that this investment represents a significant leap forward in AI capabilities, enabling the next generation of intelligent systems. OpenAI's CEO also highlighted the importance of computational power in driving AI advancements, stating that it is the foundation of future economic growth.

OpenAI's ChatGPT, used by approximately 700 million people weekly, requires substantial computational resources for maintenance and development. The company has previously faced challenges in meeting user demand due to computational limitations, particularly during the launch of new products. The CEO of OpenAI announced that several new "computationally intensive" products would be released in the coming weeks. The partnership between NVIDIA and OpenAI is part of a larger trend in the tech industry, where companies are investing heavily in AI infrastructure. Other major tech companies have also announced significant investments in AI data centers, further highlighting the growing demand for AI tools and the computational power required to support them.