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OpenAI puts Stargate UK on ice, blames energy costs and red tape

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11–20 of 39 posts

Re: OpenAI puts Stargate UK on ice, blames energy costs and red tape

#12
Arguably this aligns with their decision to discontinue Sora.

If we assume they are trying to rapidly free up compute then the UK is a pretty stupid place to be building out new datacenters... Any project here overruns both in time and budget – if it even goes ahead at all.

Then you have energy costs which makes the UK one of the most expensive places in the world to build a datacenter. If you want to bring compute online fast and at a competitive price, then you're far better off building somewhere else in Europe like Norway.

Re: OpenAI puts Stargate UK on ice, blames energy costs and red tape

#13
post #3
post #2

Good, RAM to the people!

I don't expect prices for RAM or SSD to get cheaper anytime soon. From what I've seen, production capacity has been bought out for a couple years already.

Datacenter capex decreasing means that the chips have to go somewhere else, so it doesn't matter too much that the fab capacity has been spoken for, if the demand side is slacking prices will decrease.

Re: OpenAI puts Stargate UK on ice, blames energy costs and red tape

#14
post #3

Earlier quoted context omitted.

I don't expect prices for RAM or SSD to get cheaper anytime soon. From what I've seen, production capacity has been bought out for a couple years already.

Eventually Chinese RAM will get good enough and then it'll flood the market, pushing prices down.

It has been good enough for long time. CXMT has long made DRAM and NAND modules that are just as good as anyone else's, sometimes for half the price. The only thing they can't match is flagship products of Samsung.

However because of that, prices for Chinese-made DDR5 have risen in China (and globally) along with the prices of all others, just with a slight delay.

Re: OpenAI puts Stargate UK on ice, blames energy costs and red tape

#17
post #8

[flagged]

>And more importantly the investors are all gone gone. they closed a $120bn funding round last week... i think i feel about the same as you towards openai, but come on.

Note that they themselves described that amount as "committed capital", not something you or I would consider "funding" if we were to raise for a typical startup.

If there are strings attached, such as "will be able to navigate red tape to get X number of DC sites approved", then the number depends on OpenAI's ability to execute.

Re: OpenAI puts Stargate UK on ice, blames energy costs and red tape

#20
post #12

Arguably this aligns with their decision to discontinue Sora. If we assume they are trying to rapidly free up compute then the UK is a pretty stupid place to be building out new datacenters... Any project here overruns both in time and budget – if it even goes ahead at all. Then you have energy costs which makes the UK one of the most expensive places in the world to build a datacenter. If you want to bring compute o…

Sora was a loss-loss-leader to a loss-leader product with added liability exposure ontop. Was wise to bail on it as the resource demands are crazy for video gen with AI, and to get longer clips, you need more and more memory. Upside is, they might have some IP they can leveridge down the line, or liscence the product to others.

UK been a mess enegy wise for a while as we rushed towards netzero when we should of been more tortise, that saw the UK see where we were and where we wanted to be and go in a straight line like a roman road,but no concept of bridges or tunnels, that made the direction more bumpy than it could have been and far less impacting overall. There again, good example would be the mad rush done when they rushed to replace incadecent bulbs under Regulation EC 244/2009 with CFC bulbs chucked endless money to pat themselves on the back with LED taking over a few years later, sending those rushed replacement to landfill - which of note, if you broke one, you literly have to evac your house and air for a while due to the mecury in them. As I said, many good intentions are rushed like a hare when we all know the tortise wins the race.

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