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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

#511

Post by Blackthorn »

p1necone wrote: post #509
ComputerGuru wrote: post #371

Framing it in gigawatts is very interesting given the controversy about skyrocketing electric prices for residential and small business users as a result of datacenters over the past three years, primarily driven by AI growth. If, as another commenter notes, this 10GW is how much Chicago and NYC use combined , then we need to have a serious discussion about where this power is going to come from given the dismal stat…

Theoretically couldn't you use all the waste heat from the data center to generate electricity again, making the "actual" consumption of the data center much lower?

No.

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

#512

Post by mountainriver »

switchers wrote: post #276
mountainriver wrote: post #174

Earlier quoted context omitted.

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.

Get your head out of the proverbial, a bullshitting machine that lets some developers do things faster if they modify how they develop isn't even close to the most valuable thing we've ever created.

It easily is, nothing else is even remotely close. Software is the most valuable industry on earth and we are well on our way to fully commoditizing it.

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

#513

Post by quasse »

p1necone wrote: post #509
ComputerGuru wrote: post #371

Framing it in gigawatts is very interesting given the controversy about skyrocketing electric prices for residential and small business users as a result of datacenters over the past three years, primarily driven by AI growth. If, as another commenter notes, this 10GW is how much Chicago and NYC use combined , then we need to have a serious discussion about where this power is going to come from given the dismal stat…

Theoretically couldn't you use all the waste heat from the data center to generate electricity again, making the "actual" consumption of the data center much lower?

Given that steam turbine efficiency depends on the temperature delta between steam input and condenser, unlikely unless you're somehow going to adapt Nvidia GPUs to run with cooling loop water at 250C+.

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

#514

Post by fuzzfactor »

randomNumber7 wrote: post #391
ComputerGuru wrote: post #371

Framing it in gigawatts is very interesting given the controversy about skyrocketing electric prices for residential and small business users as a result of datacenters over the past three years, primarily driven by AI growth. If, as another commenter notes, this 10GW is how much Chicago and NYC use combined , then we need to have a serious discussion about where this power is going to come from given the dismal stat…

I mean gigawatts is a concise metric to get a grasp of the amount of gpu compute they install, but the honesty seems a bit strange to me imo.

Total gigawatts is the maximum amount of power that can be supplied from the power generating station and consumed at the DC through the infrastructure and hardware as it was built.

Whether they use all those gigawatts and what they use them for would be considered optional and variable from time to time.

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

#515

Post by mgh95 »

humanizersequel wrote: post #499
mgh95 wrote: post #342

Earlier quoted context omitted.

Currently, selling LLM inference is a red queen race: the moment you release a model, others begin distilling and attempting to sell your model cheaper, avoiding the expensive capitalized costs associated with R&D. This can occur because the LLM market is fundamentally -- at best -- minimally differentiated; consumers are willing to switch between vendors ("big labs", as you call them, but they aren't really research…

I don't disagree but you're moving the goalposts. I never said that they could achieve the profits of a typical tech business, just that they could be profitable. Also, the whole distilling problem doesn't happen if the model is proprietary.

> I don't disagree but you're moving the goalposts. I never said that they could achieve the profits of a typical tech business, just that they could be profitable. Also, the whole distilling problem doesn't happen if the model is proprietary.

In the absence of typical software margins, they will be eroded by providers of "good enough" margins (AWS, Azure, GCP, etc.) who gain more profit from the bundled services than OpenAI does from the primary services. This has happened multiple times in history, either resulting in smaller businesses below IPO price (such as Elastic, Hashicorp, etc.) or outright bankruptcy.

Second, the distilling happens on the outputs of the model. Model distillation refers to the usage of a models outputs to train a secondary smaller model. Do not mistake distillation for training (or retraining) to sparse models. You can absolutely distill proprietary models. In fact, that is how DeekSeek-R1-Distill-Qwen and the DeepSeek-R1-Distill-Llama are trained. This also happens with Chinese startups distilling OpenAI models to resell [2].

The worst part is OpenAI is already having to provide APIs to do this [1]. This is not ideal, as OpenAI wants to lock people into (as much as possible) a single platform.

I really don't like OpenAIs market position here. I don't think it's long term profitable.

[1] https://openai.com/index/api-model-distillation/

[2] https://www.theguardian.com/technology/2025/jan/29/openai-ch...

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

#516

Post by patrickmcnamara »

mvanbaak wrote: post #502
ComputerGuru wrote: post #371

Framing it in gigawatts is very interesting given the controversy about skyrocketing electric prices for residential and small business users as a result of datacenters over the past three years, primarily driven by AI growth. If, as another commenter notes, this 10GW is how much Chicago and NYC use combined , then we need to have a serious discussion about where this power is going to come from given the dismal stat…

0,19 per kwh. Damn man, here it is like 0,97 per kwh (Western Europe) … stop complaining

This is not true. The average in the EU is 0,287 €/kWh. I pay 0,34 €/kWh in Berlin.

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

#517

Post by protocolture »

elbasti wrote: post #403
ComputerGuru wrote: post #371

Framing it in gigawatts is very interesting given the controversy about skyrocketing electric prices for residential and small business users as a result of datacenters over the past three years, primarily driven by AI growth. If, as another commenter notes, this 10GW is how much Chicago and NYC use combined , then we need to have a serious discussion about where this power is going to come from given the dismal stat…

I work in the datacenter space. The power consumption of a data center is the "canonical" way to describe their size. Almost every component in a datacenter is upgradeable—in fact, the compute itself only has a lifespan of ~5 years—but the power requirements are basically locked-in. A 200MW data center will always be a 200MW data center, even though the flops it computes will increase. The fact that we use this unit…

This.

A local to me ~40W datacenter used to be in really high demand, and despite having excess rack space, had no excess power. It was crazy.

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

#518

Post by fuzzfactor »

Rudybega wrote: post #399
NooneAtAll3 wrote: post #346

Earlier quoted context omitted.

I'm kinda scared of "1.2 hours a day of ai use"...

Sorry, those figures are skewed by Timelord Georg, who has been using AI for 100 million hours a day, is an outlier, and should have been removed.

Roger, but I still think with that much energy at its disposal, if AI performs as desired it will work it's way up to using each person more than 1.2 hours per day, without them even knowing about it :\

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

#519

Post by nixass »

protocolture wrote: post #517
elbasti wrote: post #403

Earlier quoted context omitted.

I work in the datacenter space. The power consumption of a data center is the "canonical" way to describe their size. Almost every component in a datacenter is upgradeable—in fact, the compute itself only has a lifespan of ~5 years—but the power requirements are basically locked-in. A 200MW data center will always be a 200MW data center, even though the flops it computes will increase. The fact that we use this unit…

This. A local to me ~40W datacenter used to be in really high demand, and despite having excess rack space, had no excess power. It was crazy.

40W - is that ant datacenter? :)

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

#520

Post by fuzzfactor »

kingstnap wrote: post #72
ddtaylor wrote: post #4

For someone who doesn't know what a gigawat worth of Nvidia systems is, how many high-end H100 or whatever does this get you? My estimates along with some poor-grade GPT research leads me to think it could be nearly 10 million? That does seem insane.

It's a ridiculous amount claimed for sure. If its 2 kW per it's around 5 million, and 1 to 2 kW is definitely the right ballpark at a system level. The NVL72 is 72 chips is 120 kW total for the rack. If you throw in ~25 kW for cooling its pretty much exactly 2 kW each.

So each 2KW component is like a top-shelf space heater which the smart money never did want to run unless it was quite cold outside.
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