OpenAI to present plans for U.S. AI strategy and an alliance to compete with China
In this photo illustration, the OpenAI logo is displayed on a mobile phone screen with a photo of Sam Altman, CEO of OpenAI.
Didem Mente | Anadolu | Getty Images
OpenAI’s official “blueprint for U.S. AI infrastructure” involves artificial intelligence economic zones, tapping the U.S. Navy’s nuclear power experience and government projects funded by private investors, according to a document viewed by CNBC, which the company plans to present on Wednesday in Washington, D.C.
The blueprint also outlines a North American AI alliance to compete with China’s initiatives and a National Transmission Highway Act “as ambitious as the 1956 National Interstate and Defense Highways Act.”
In the document, OpenAI outlines a rosy future for AI, calling it “as foundational a technology as electricity, and promising similarly distributed access and benefits.” The company wrote that investment in U.S. AI will lead to tens of thousands of jobs, GDP growth, a modernized grid that includes nuclear power, a new group of chip manufacturing facilities and billions of dollars in investment from global funds.
Now that Donald Trump is President-elect, OpenAI has made clear its plans to work with the new administration on AI policy, and the company’s Wednesday presentation outlines its plans.
Trump plans to repeal President Biden’s executive order on AI, according to his campaign platform, stating that it “hinders AI Innovation, and imposes Radical Leftwing ideas on the development of this technology” and that “in its place, Republicans support AI Development rooted in Free Speech and Human Flourishing.”
OpenAI’s presentation outlines AI economic zones co-created by state and federal governments “to give states incentives to speed up permitting and approvals for AI infrastructure.” The company envisions building new solar arrays and wind farms and getting unused nuclear reactors cleared for use.
“States that provide subsidies or other support for companies launching infrastructure projects could require that a share of the new compute be made available to their public universities to create AI research labs and developer hubs aligned with their key commercial sectors,” OpenAI wrote.
OpenAI also wrote that it foresees a “National Transmission Highway Act” that could expand power, fiber connectivity and natural gas pipeline construction. The company wrote it needs “new authority and funding to unblock the planning, permitting, and payment for transmission,” and that existing procedures aren’t keeping pace with AI-driven demand.
The blueprints say, “The government can encourage private investors to fund high-cost energy infrastructure projects by committing to purchase energy and other means that lessen credit risk.”
A North American AI Alliance and investment in more U.S. data centers
OpenAI also foresees a North American AI alliance of Western countries that could eventually expand to a global network, such as a “Gulf Cooperation Council with the UAE and others in that region.”
The company also outlined its vision for nuclear power, writing that although China “has built as much nuclear power capacity in 10 years as the US built in 40,” the U.S. Navy operates about 100 small modular reactors (SMRs) to power naval submarines, and leveraging the Navy’s expertise could lead to building more civilian SMRs.
OpenAI’s infrastructure blueprint aligns with what Chris Lehane, OpenAI’s head of global policy, told CNBC in a recent interview. He sees the Midwest and Southwest as potential core areas for AI investment.
“Parts of the country that have been ‘left behind,’ as we enter the digital age, where so much of the economics and particularly economic benefits flow to the two coasts… Areas like the midwest and the southwest are going to be the types of places where you have the land and ability to do wind farms and to do solar facilities, and potentially to do some part of the energy transition — potentially do nuclear facilities,” Lehane said.
The infrastructure, Lehane explained, is contingent on the U.S. maintaining a lead over China in AI.
“[In] Kansas and Iowa, which sits on top of an enormous amount of agricultural data, think about standing up a data center,” Lehane said. “One gigawatt, which is a lot, taking, you know, 200-250 megawatts, a quarter of that, and doing something with their public university systems to create an agricultural-based LLM or inference model that would really serve their community but also make them a center of agricultural AI.”
Lehane cited an estimate that the US will need 50 gigawatts of energy by 2030 to support the AI industry’s needs and to compete against China, especially when the country approved 20 nuclear reactors over the past two years and 11 more for next year.
“We don’t have a choice,” Lehane said. “We do have to compete with that.”
Technology
Trump announces $100 billion investment in U.S. from TSMC, calls it ‘most powerful company’ in world
C.C. Wei, TSMC Group CEO, stands on the future site of a chip factory under the name European Semiconductor Manufacturing Company (ESMC) during a symbolic ground-breaking ceremony.
Sebastian Kahnert | Picture Alliance | Getty Images
Taiwan Semiconductor Manufacturing will pour $100 billion into bolstering chip manufacturing in the U.S., President Donald Trump announced Monday.
The president called the investment a “tremendous move by the most powerful company in the world.” The new capital brings TSMC’s total investment in the U.S. to $165 billion and will go toward building five new fabrication facilities in Arizona.
The announcement from TSMC, which supplies semiconductors to the likes of Nvidia and Apple for artificial intelligence use, supports the Trump administration’s ongoing efforts to make the U.S. an artificial intelligence hub.
Last month, Trump announced a multibillion-dollar AI infrastructure project with Oracle, OpenAI and Softbank. He’s also made numerous calls to bring semiconductor production back to the U.S. after much of the manufacturing industry moved abroad. Advancing semiconductor production in the U.S. is a matter of economic and national security, Trump said Monday.
Trump has repeatedly called out and accused Taiwan of stealing the U.S. chip manufacturing business and touted tariffs on semiconductor imports. The company’s finance chief, Wendell Huang, told CNBC in January that he was confident the new White House administration would continue funding the company’s U.S. ambitions.
TSMC has already made strides to expand its footprint in the U.S prior to Monday’s announcement. The company committed $12 billion in 2020 to build its first U.S. chip factory in Arizona, later raising that investment to $65 billion with a third factory. It has also gained U.S. government support through a $6.6 billion subsidy from the U.S. Commerce Department.
WATCH: Broadcom and TSMC exploring deals for parts of Intel, according to WSJ
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