OpenAI is out of cash. It wanted to raise $30B last week but only $11b showed up. It’s now begging for an additional $9b (down from original request of $19b more) from plebs, but no one has committed anything. They want to raise money at a $1.25T valuation, while ANThropic is struggling to clear a $1.3T valuation for its IPO, and ANT is arguably worth double whatever OpenAI is worth, or more precisely OpenAI is half of ANT.
OpenAI is likely this week to lock in that $11b in commitments to prevent “cold feet clauses”, and then add incentives for the other cash it needs. Coreweave is another company that needs cash now, with no good options to raise any of it.
The AI circular financing bubble has OpenAI at the center. Instead of pretending it is worth $1T, all of the promises OpenAI has made have bankruptcy triggering clauses by the promise receivers, and under bankruptcy, selling off assets is worth less than $10b, and datacenters are dark without need for more of them, or more GPUs.
What seems surprising, is that even though the bubble fuckers know that collapse/pop occurs when OpenAI crashes, they are not stepping up with a measly $9b to keep it alive for a few months.
If you did you’re own cooling, then they’ll run quietly and won’t get super hot. If you use the reference coolers they dump on these with the single squirrel cage fans…shit is loud as hell and they cool for crap.
I’ve got half of rack full of old servers, switches and routers, so I’m used to screamers. If the system pulls less than a kW I’m good.
Lol, I’ve gone to passive or low db stuff now. Used to do that and even have a server closet for all of it in the house, but I have been replacing it with lower power with smaller heat footprints. Just recently built a m920q opnsense router, after my ubiquiti shit itself and they didn’t want to replace it because it was a month past the warranty and their own OTA update is what bricked it.