Fidji Simo says OpenAI can't afford not to strike massive compute deals: 'What's much riskier would be to not lean into compute'

"I know these deals look risky on the outside, but on the inside, what's much riskier would be to not lean into compute," Simo told Wired in an interview published on Monday."

""If we end up misspending a couple of hundred billion dollars, I think that that is going to be very unfortunate, obviously," he said in September. "But what I'd say is I actually think the risk is higher on the other side.""

""If we screw up and can't fix it, we should fail, and other companies will continue on doing good work and servicing customers," Altman wrote on X. "That's how capitalism works and the ecosystem and economy would be fine. We plan to be a wildly successful company, but if we get it wrong, that's on us.""

OpenAI is prioritizing aggressive compute hyperscaling and views underinvesting in compute as a greater strategic risk than the appearance of risky deals. Compute scarcity is forcing limitations on product features such as ChatGPT Pulse. Major technology firms are committing very large capital expenditures for AI infrastructure, and some economists say those investments are boosting the broader economy while some investors worry about a potential bubble similar to the Dot-Com era. Company leadership clarified there is no expectation of a government bailout for failed data center investments and stated that failed investments would be borne by the company as part of normal market outcomes.

Read at Business Insider