Sam Altman’s OpenAI eyes deal for fusion-powered data centres to meet soaring energy needs

Artificial intelligence is sending energy demands of data centres soaring and tech companies racing to buy up enough clean power

OpenAI CEO Sam Altman has backed nuclear fusion and cheap solar plus energy storage as the best solutions to the huge power demands of AI.
OpenAI CEO Sam Altman has backed nuclear fusion and cheap solar plus energy storage as the best solutions to the huge power demands of AI.Photo: Flickr/TechCrunch

ChatGPT creator OpenAI, owned by tech tycoon Sam Altman, is reportedly in talks with a nuclear fusion start-up to buy vast amounts of clean power for energy-guzzling data centres.

OpenAI is currently negotiating a deal with Helion – a Washington State start-up chaired by Altman – to secure future fusion power for its data centres, reports The Wall Street Journal.

Altman invested $375m in Helion in 2021 and has reportedly recused himself from the talks with OpenAI given his conflict of interest.

Altman has previously said a clean energy “breakthrough” is needed to match the surging power demands of AI, singling out nuclear along with cheaper solar power and storage as his favoured solutions.

Helion made history last year by entering what was said to be the world’s first power purchase agreement for power from fusion, which aims to harness the reactions that power stars to produce unlimited, on-demand, zero-carbon energy.

Helion signed that deal with tech giant Microsoft, which has close links with OpenAI, with the two tech companies reportedly planning to build a $100bn data centre with an artificial intelligence supercomputer called “Stargate” – set to launch in 2028.

Helion plans to get its first plant online by 2028. That is significantly ahead of other fusion start-ups, many of which are targeting the early 2030s to begin producing commercial power.

The magneto-inertial fusion approach Helion is taking sees plasma generated at both ends of the reactor. These plasmas are then accelerated towards a central compression chamber where fusion ignition is achieved and electricity is generated.

Other big-name Helion investors include LinkedIn co-founder Reid Hoffman and Facebook co-founder Dustin Moskovitz.

Helion says its “long-term goal” is to deliver power at $0.01/kWh.

Tech giants are currently racing to buy up enough power to fuel data centres whose energy demands are expected to increase by 160% by 2030. That represents an increase of around 650TWh – comfortably more than the electricity demand of South Korea.

A recent Goldman Sachs analysis found this represents a near $1tn investment opportunity for the energy sector in the US and Europe. Clean energy producers are primed to take the lion’s share of this given the net zero goals of most Big Tech companies.
Altman also recently invested in another US start-up that plans to power data centres with a “unique” three-in-one solar-powered solution that is also targeting electricity prices of just $0.01/kWh.
(Copyright)
Published 4 June 2024, 09:50Updated 4 June 2024, 09:50
OpenAISam AltmanHelionUSMicrosoft