this post was submitted on 23 May 2025
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OpenAI plans massive UAE data center project (www.semafor.com)
submitted 2 days ago by [email protected] to c/[email protected]
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[–] [email protected] 14 points 2 days ago (1 children)

Remember, this is all about OpenAI convincing investors to shovel more money into their furnace.

They are not profitable. They have no realistic path to being profitable. Their only hope for survival is to South Seas Company their through round after round of investor funding. And to do that they have to create the appearance of near unlimited demand for their services, and therefore for additional capacity to run those services.

The writing is on the wall. Microsoft and Amazon, two of the biggest players in the compute space, both of which also run their own AI projects, have both massively scaled back their plans for future compute expansion. If anyone should be building out like crazy it's them. If anyone has a clear idea of what the actual demand is, it's them. If Amazon and Microsoft are out, this thing is fucked.

OpenAI is fucked. Sam Altman knows it. But if he can keep the illusion going, the money train doesn't have to stop. Yet.

[–] [email protected] 3 points 1 day ago (1 children)

Ok this is interesting can I ask how you know that they scaled back their compute? Without looking into it too much it seemed like they were full steam ahead (revamping three mile island).