zlacker

It appears this basically locks out Google, Amazon and Meta. Why are we declaring OpenAI as the winner? This is like declaring Netscape the winner before the dust settled. Having the govt involved in this manner can’t be a good thing.

>>lvl155+(OP)
Because it's free to play, pay to win, from now on.

>>lvl155+(OP)
I am not sure if OpenAI will be the winner despite this investment. Currently, I see various DeepSeek AI models as offering much more bang for the buck at a vastly cheaper cost for small tasks, but not yet for large context tasks.

>>lvl155+(OP)
Because this is Oracle's and OpenAI's project with SoftBank and MGX as investors.

>>lvl155+(OP)
It's who you know. Sam is buddies with Masa, simple as.

>>lvl155+(OP)
Interestingly, there seems to be no actual government involvement aside from the announcement taking place at the White House. It all seems to be private money.

>>lvl155+(OP)
I generally agree that government sponsorship of this could be bad for competition. But Google in particular doesn't necessarily need outside investment to compete with this. They're vertically integrated in AI datacenters and they don't have to pay Nvidia.

>>lvl155+(OP)
Amazon MGM will do the media tie-ins. ;)

>>modele+b5
Google definitely needs outside investment to spend $500b on capex.

>>shuckl+C7
They don't have to spend $500B to compete. Their costs should be much lower.

That said, I don't think they have the courage to invest even the lower amount that it would take to compete with this. But it's not clear if it's truly necessary either, as DeepSeek is proving that you don't need a billion to get to the frontier. For all we know we might all be running AGI locally on our gaming PCs in a few years' time. I'm glad I'm not the one writing the checks here.

>>lvl155+(OP)
This is not a government sponsored agreement. There is no locking out.

Trump probably wanted to start his presidency with a bang, being a person with excess vanity. The participating companies scored a PR coup.

>>lvl155+(OP)
The actual press release makes it clearer that this isn't a lockout of any kind and there's no direct government involvement. Softbank and some of other banks persuaded by Softbank are ponying up $500B for OpenAI to invest in AI. Trump is hyping this up from the sidelines because "OpenAI says this will be good for America". It's basically just another day in the world of press-releases and political pundits commenting on press-releases.

>>skepti+h4
Yeah but the linked article makes it seem like the current, one-day-old, administration is responsible for the whole thing.

>>lvl155+(OP)
Since the CEOs of Google, Amazon and Meta were seated at the front row of the inauguration, IN FRONT OF the incoming cabinet, I'm pretty confident their techno -power-barrel will come via other channels.

>>shuckl+C7
TFA says $100 billion. The $500 is maybe, eventually.

>>signat+U8
Yes, everything that Trump does is bad.

Or then, consider that with his policies put forward the president brings investments to the US.

>>rcpt+Ja
The article also mentions that this all started last year.

>>skepti+h4
Government enforcing or laxing/fast tracking regulations and permits can kill or propel even a 100B project, and thus can be thought as having its own value on the scale of the given project’s monetary investment, especially in the case of a will/favor/whim-based government instead of a hard rules based deep state one.

>>modele+Q8
This seems to be getting lost in the noise in the stampede for infrastructure funding

Deepseek v3 at $5.5M on compute and now r1 a few weeks later hitting o1 benchmark scores with a fraction of the engineers etc. involved ... and open source

We know model prep/training compute has potentially peaked for now ... with some smaller models starting to perform very well as inference improves by the week

Unless some new RL concept is going to require vastly more compute for a run at AGI soon ... it's possible the capacity being built based on an extrapolation of 2024 numbers will exceed the 2025 actuals

Also, can see many enterprises wanting to run on-prem -- at least initially

>>rcpt+Ja
Trump just tore up Biden's AI safety bill, so this is OpenAI's thank-you - let Trump take some credit

>>jazzyj+J3
Who’s Masa?

>>trhway+7e
Isn't that a state and local-level thing, though? I can't imagine that there is much federal permitting in building a data center, unless it is powered by a nuclear reactor.

>>cmdli+mf
> Isn't that a state and local-level thing

Build it on federal land.

> unless it is powered by a nuclear reactor

From what I’m hearing, this is in play. (If I were in nuclear, I’d find a way to get Greenpeace to protest nuclear power in a way that Trump sees it.)

>>thiht+Pe
https://en.wikipedia.org/wiki/Masayoshi_Son

>>thiht+Pe
-yoshi son

>>OutOfH+M2
when did the government EVER go for anything taking cost into consideration? :)

>>modele+Q8
They’re a big company. You could tell a story that they’re less efficient than OpenAI and Nvidia and therefore need more than $500b to compete! Who knows?

>>shuckl+C7
Over what time frame? They could easily spend that much over the next 5 to 10 years without outside investment (and they probably will).

>>Vector+5b
Broligarchs

>>HarHar+pe
Note sure if the downvoters realize that Trump did in fact just tear up Biden's AI safety bill/order.

https://www.reuters.com/technology/artificial-intelligence/t...

>>shuckl+C7
Probably not popular opinion - but I actually think Google is winning this now. Deep research is the most useful AI product I have used (Claud is significantly more useful than openAI)

>>lvl155+(OP)
How involved is the government at all? I’m still having a hard time seeing how Trump or anyone in the government is involved except to do the announcement. These are private companies coming together to do a deal.

>>bdangu+fh
This is not a government funded project.

>>lvl155+(OP)
Wonder how co-president Elon Musk feels about this, seeing that OpenAI is his mortal enemy.

>>HarHar+En
It's even mentioned in the article!

> Still, the regulatory outlook for AI remains somewhat uncertain as Trump on Monday overturned the 2023 order signed by then-President Joe Biden to create safety standards and watermarking of AI-generated content, among other goals, in hopes of putting guardrails on the technology’s possible risks to national security and economic well-being.

>>HarHar+En
He delayed enforcement of it for 75 days while they take time to interpret the law.