OpenAI is turning to renewable sources to address artificial intelligence’s insatiable demand for energy. The company’s chief executive officer, Sam Altman, has partnered with venture capital firm Andreessen Horowitz to invest in a green energy startup, Exowatt. The two have invested $20 million in the startup, which specializes in providing renewable energy to data centers.
AI Clean Energy Investments
Altman and Horowitz join a growing list of big tech and private equity firms that are increasingly pumping billions of dollars into clean energy companies to support the future of artificial intelligence development. Investors increasingly invest in startups that promise to deliver unlimited clean energy to power the AI revolution.
Exowatt is the latest startup to elicit strong interest owing to its edge in utilizing solar systems to provide nearly free clean energy. The $20 million investment comes from renewable energy emerging as an attractive investment for AI companies looking for alternative and cheaper energy sources to support their energy-intensive programs.
Altman has also invested in Helion and Oklo, two nuclear energy startups increasingly providing renewable energy to power AI data centers. Similarly, Amazon has already purchased a nuclear-powered data center, affirming the growing demand for renewable-powered AI data centers.
Artificial intelligence development requires a significant amount of energy compared to other operations owing to intense computing demands. Large language models and generative AI tools developed by many companies require enormous computing power to collect and analyze vast amounts of data.
On the other hand, the data centers in which the data is stored utilize some of the most influential and advanced computer chips that are power-intensive. Nvidia chips, which account for about 90% of the chip market, draw about 1000-watt power, as much as a typical microwave. AI companies have millions of these chips around the clock, which has triggered a significant demand for energy.
Consequently, data center operators have had to source alternative energy sources to supplement their power needs. Most of the data centers in the US are located in areas with high solar radiation levels to generate more energy to meet the ever-growing demand.
Likewise, renewable energy is becoming increasingly popular for AI companies and other etch giants because it is not subject to any regulatory red tape and can be pumped into data centres directly without first interfacing with the electric grid.
AI in Sporting
Meanwhile, artificial intelligence is finding great use in the sporting world in helping teams rate player performance and determine how different actions and decisions would impact performance. The technology is also assisting teams in scouting for players and planning tactics against opponents in ways that were previously considered complex,
A team like Barcelona increasingly uses AI tools to analyze footage from past soccer matches to gauge opponents’ tactics and devise ways of countering them. Additionally, the technology allows fans to interact with their favorite teams and players.
Likewise, artificial intelligence could be the missing link in helping sports teams generate big bucks from their operations. For instance, some tools help teams enhance ticket and merchandise sales and generate revenues. As generative AI capabilities become a standard tool for enhancing competitive advantage, teams with solid capabilities and associated benefits stand to be more attractive investments, which should drive valuations.
