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OpenAI and Nvidia announce partnership to deploy 10GW of Nvidia systems

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Re: OpenAI and Nvidia announce partnership to deploy 10GW of Nvidia systems

#171

Post by mossTechnician »

vessenes wrote: post #162
JCM9 wrote: post #108

This is throwing more cards on the house of cards. Nvidia is “investing” in OpenAI so OpenAI can buy GPUs from NVidia. Textbook “round tripping.” I generally like what’s been happening with AI but man this is gonna crash hard when reality sets in. We’re reaching the scary stage of a bubble where folks are forced to throw more and more cash on the fire to keep it going with no clear path to ever get that cash back. If…

Almost every model trained by the majors has paid for itself with inference fees. I’m not saying there isn’t a bubble, but I am saying if the researchers and strategists absolutely closest to the “metal” of realtime frontier models are correct that AGI is in reach, then this isn’t a bubble, it’s a highly rational race. One that large players seem to be winning right now.

Which of these model-making companies have posted a profit? I'm not familiar with any.

Re: OpenAI and Nvidia announce partnership to deploy 10GW of Nvidia systems

#172

Post by [deleted] »

bitmasher9 wrote: post #135
anothermathbozo wrote: post #118

Earlier quoted context omitted.

What is this a bubble on? What does said bubble collapsing look like?

Nvidia is giving OpenAi money (through investment) to buy Nvidia chips. The bubble is that Nvidia got that money from its crazy high stock price, the extra investment raises OpenAi’s evaluation and the increased sells raises Nvidia’s evaluation. If the valuations see a correction then spending like this will decrease, further decreasing valuations. Bubble collapsing looks like enshittification of OpenAI tools as they…

[deleted]

Re: OpenAI and Nvidia announce partnership to deploy 10GW of Nvidia systems

#173

Post by vessenes »

bitmasher9 wrote: post #135
anothermathbozo wrote: post #118

Earlier quoted context omitted.

What is this a bubble on? What does said bubble collapsing look like?

Nvidia is giving OpenAi money (through investment) to buy Nvidia chips. The bubble is that Nvidia got that money from its crazy high stock price, the extra investment raises OpenAi’s evaluation and the increased sells raises Nvidia’s evaluation. If the valuations see a correction then spending like this will decrease, further decreasing valuations. Bubble collapsing looks like enshittification of OpenAI tools as they…

NVDA outstanding shares are down ~1.2% year over year; the company has been buying back its own shares with —>> profits Meanwhile NVDA stock is mildly up on this news, so the current owners of NVDA seem to like this investment. Or at least not hate it.

Agreed that we’ll see ad-enabled ChatGPT in about five minutes. What’s not clear is how easily we’ll be able to identify the ads.

Re: OpenAI and Nvidia announce partnership to deploy 10GW of Nvidia systems

#174

Post by mountainriver »

vessenes wrote: post #162
JCM9 wrote: post #108

This is throwing more cards on the house of cards. Nvidia is “investing” in OpenAI so OpenAI can buy GPUs from NVidia. Textbook “round tripping.” I generally like what’s been happening with AI but man this is gonna crash hard when reality sets in. We’re reaching the scary stage of a bubble where folks are forced to throw more and more cash on the fire to keep it going with no clear path to ever get that cash back. If…

Almost every model trained by the majors has paid for itself with inference fees. I’m not saying there isn’t a bubble, but I am saying if the researchers and strategists absolutely closest to the “metal” of realtime frontier models are correct that AGI is in reach, then this isn’t a bubble, it’s a highly rational race. One that large players seem to be winning right now.

The idea that it’s a bubble on the frontier model side is insane. AI assisted coding alone makes it the most valuable thing we’ve ever created.

Re: OpenAI and Nvidia announce partnership to deploy 10GW of Nvidia systems

#175

Post by hoosieree »

TheRealGL wrote: post #34

Did I miss the part where they mention the 10 large nuclear plants needed to power this new operation? Where's all the power coming from for this?

Also water. You will be rationed, OpenAI will not.

https://www.newstarget.com/2025-08-02-texas-ai-data-centers-...

Re: OpenAI and Nvidia announce partnership to deploy 10GW of Nvidia systems

#177

Post by vessenes »

gehsty wrote: post #158
labrador wrote: post #131

For scale: The 1960's era US Navy submarine I served on had a 78MW reactor, so 10GW is 128 nuclear submarines

Some more context, Nuclear power stations can be up to 2GW, offshore windfarms are seemingly hitting a plateau at ~1.5GW, individual turbines in operations now are 15MW. Grids are already strained, 525kV DC systems can transmit ~2GW of power per cable bundle… Adding 10GW of offtake to any grid is going to cause significant problems and likely require CAPEX intensive upgrades (try buy 525kV dc cable from an establishe…

Yeah the path forward here is going to be Apple-like vertical supply chain integration. There is absolutely no spare capacity in the infra side of electrical right now, at least in the US.

Re: OpenAI and Nvidia announce partnership to deploy 10GW of Nvidia systems

#178

Post by mountainriver »

bitmasher9 wrote: post #135
anothermathbozo wrote: post #118

Earlier quoted context omitted.

What is this a bubble on? What does said bubble collapsing look like?

Nvidia is giving OpenAi money (through investment) to buy Nvidia chips. The bubble is that Nvidia got that money from its crazy high stock price, the extra investment raises OpenAi’s evaluation and the increased sells raises Nvidia’s evaluation. If the valuations see a correction then spending like this will decrease, further decreasing valuations. Bubble collapsing looks like enshittification of OpenAI tools as they…

Valuations won’t see a correction for the core players, I have no idea why people think that. Both of these companies are already money factories.

Then consider we are about to lower interest rates and kick off the growth cycle again. The only way these valuations are going is way up for the foreseeable future

Re: OpenAI and Nvidia announce partnership to deploy 10GW of Nvidia systems

#179

Post by wongarsu »

shawabawa3 wrote: post #127
anothermathbozo wrote: post #118

Earlier quoted context omitted.

What is this a bubble on? What does said bubble collapsing look like?

AI and tech companies Collapse might look a little like the dot com bubble (stock crashes, bankruptcies, layoffs, etc)

And it's worth reiterating that a bubble does not mean the technology is worthless. The dot com bubble collapsed despite the internet being a revolutionary technology that has shaped every decade since. Similarly LLMs are a great and revolutionary technology, but expectations, perception and valuations have grown much faster than what the technology can justify

These hype cycles aren't even bad per se. There is lots of capital to test out lots of useful ideas. But only a fraction of those will turn out to be both useful and currently viable, and the readjustment will be painful

Re: OpenAI and Nvidia announce partnership to deploy 10GW of Nvidia systems

#180

Post by dns_snek »

onlyrealcuzzo wrote: post #140
awertjlkjl wrote: post #124

Earlier quoted context omitted.

You could think of it as "as much power as is used by NYC and Chicago combined". Which is fucking insanely wasteful.

I dunno. Google is pretty useful. It uses >15 TWh per year. Theoretically, AI could be more useful than that. Theoretically, in the future, it could be the same amount of useful (or much more) with substantially less power usage. It could be a short-term crunch to pull-forward (slightly) AI advancements. Additionally, I'm extremely skeptical they'll actually turn on this many chips using that much energy globally in…

According to Google's latest environmental report[1] that number was 30 TWh per year in 2024, but as far as I can tell that's their total consumption of their datacenters, which would include everything from Google Search, to Gmail, Youtube, to every Google Cloud customer. Is it broken down by product somewhere?

30 TWh per year is equivalent to an average power consumption of 3.4 GW for everything Google does. This partnership is 3x more energy intensive.

Ultimately the difference in `real value/MWh` between these two must be many orders of magnitude.

[1] https://sustainability.google/reports/google-2025-environmen...

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