What’s behind the massive AI data center headlines?

Silicon Valley has been buzzing this week with headlines about enormous AI infrastructure investments.

Nvidia announced plans to invest up to $100 billion in OpenAI. At the same time, OpenAI revealed that it will partner with Oracle and SoftBank to build five new Stargate AI data centres, adding gigawatts of computing capacity over the next few years. Additionally, Oracle disclosed that it had raised $18 billion in bonds to finance the development of these facilities.

Individually, each deal is staggering. Taken together, they highlight how far the tech industry is going to ensure OpenAI has the computing power it needs to train and operate future generations of ChatGPT.

This week on Equity, Anthony Ha and Max Zeff looked beyond the splashy numbers to explain what these massive AI infrastructure moves really mean.

Adding to the momentum, OpenAI also unveiled a new feature that highlights exactly why the company requires such extensive capacity. The tool, called Pulse, delivers personalised morning briefings overnight, so users wake up to tailored updates inside ChatGPT. The feature feels like a blend between a news app and a social feed — something to check first thing in the morning — but without ads or social posts (at least for now).

Pulse belongs to a new wave of OpenAI products that function even when users aren’t actively in the app. The company plans to expand these features widely, including to free-tier users, but currently faces constraints due to limited server resources. For now, Pulse is only available to $200-per-month Pro subscribers.

That raises the big question: are features like Pulse really worth the hundreds of billions of dollars being poured into AI data centres to sustain OpenAI? It’s an impressive experience, but it also sets a very high bar for justifying this level of investment.

Catch the full Equity episode to hear more about these massive AI infrastructure projects, TikTok’s ownership drama, and the latest policy shifts shaping the future of Big Tech.