Sam Altman Explores Launching Company To Build Data Centers For OpenAI

OpenAI founder Sam Altman is considering a plan to self-develop data centers for the firm, part of an initiative for the ChatGPT maker to create its own AI chips.

Sam Altman, CEO of OpenAI, speaks at TechCrunch event in 2019.
OpenAI CEO Sam Altman speaks at a TechCrunch event in 2019.

Altman has told tech industry executives he intends to establish one or more companies that will use outside capital to acquire land and power and fund the construction of new data centers for OpenAI, The Information reports. OpenAI would rent the servers housed in those data centers, according to the report.

The potential data center build-out is part of an effort spearheaded by Altman for OpenAI or affiliated entities to develop and design proprietary artificial intelligence chips. OpenAI gets the bulk of its chips from Nvidia, but the firm is reportedly in talks with chip designers like Broadcom about the possibility of producing its own. The planned data centers would host infrastructure powered by these chips.

OpenAI would follow Amazon, Microsoft, Google and Meta in using proprietary silicon at its data centers.

Altman has been building relationships with private equity firms and other potential sources of capital that could back the data center and chip effort, The Information reported, naming SoftBank, sovereign wealth funds based in the United Arab Emirates and large private equity firms among potential investors. Altman reportedly plans to unveil the infrastructure initiative later this year.

OpenAI primarily utilizes Microsoft’s data center infrastructure, part of a wide-ranging partnership between the two firms. Oracle has also collaborated with Microsoft to provide OpenAI with one of the most powerful computing clusters in the world by next year.

This isn't the first time OpenAI has been rumored to be directly involved with a potential data center project. OpenAI and Microsoft were considering a massive data center with a $100B price tag that OpenAI employees referred to as “Stargate,” according to March reports.

Altman has also invested heavily in companies developing energy solutions to power AI data centers. He has put large chunks of personal capital into nuclear fusion startup Helion Energy and has backed microreactor firm Oklo. In April, he was among a group of investors putting $20M into Exowatt, a firm focused on providing solar and energy storage solutions for data centers.

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's National Newsletters
Related Stories

Investors Anchor Big Capital Into Marinas, Betting On Shallow Supply

Nike Closes 15 Stores Amid Tumultuous Year

Large Commercial Real Estate Sales Up 30% Despite Economic Headwinds

Evergrande Founder Sentenced To Life, 56 Others Sent To Prison In China

Loud And Clear: Why Aiphone Thinks Intercom Ownership Is Best For Multitenant Buildings

The Fast-Food Exec Taking Her Real Estate Talents To The Looksmaxxing Era

Republicans, Democrats Backing Away From Data Centers Amid Rising Backlash

TJ Maxx Parent Plans To Accelerate Store Openings In 2027

Starwood, Realterm Fund Record Industrial Outdoor Storage Loan

Rent Concessions Dip As Fewer Apartments Come Online

These 15 Lenders Are Leading The $1.3T Data Center Debt Surge

Shapiro Turns On Pennsylvania Data Centers With Restrictive Executive Order