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It's not as much as you think. Google is spending $185b on data centers this year alone. Amazon is spending $200b this year. Total capex for big tech is ~$700b
by aurareturn 7mo ago
It's not as much as you think. Google is spending $185b on data centers this year alone. Amazon is spending $200b this year. Total capex for big tech is ~$700b in 2026 and we're not including neo clouds, Chinese clouds, and other sovereign data centers.
Since everyone is trying to get compute from anywhere they can, including OpenAI going to Google, it's hard to tell what is used internally vs externally.
For example, it's entirely possible that Google's internal roadmap for Gemini sees it using $600b of compute through 2030 as well. In that case, OpenAI needs to match since compute is revenue.
- hvb2 7mo agoBut if Gemini doesn't end up using the compute because of whatever reason, Google has other ways to monetize that compute. OpenAI doesn't? So the same money spent by OpenAI and Google doesn't carry nearly the same amount of risk?
- aurareturn 7mo agoOpenAI doesn't? Why not? They've openly said they could in theory sell compute to others if they can't use it all.
- adgjlsfhk1 7mo agothis isn't credible though. them not being able to use all their compute likely means that the ai bubble has popped, so they won't be getting a good price on it.
- hvb2 7mo agoAnd who would be buying this from them? Let's say you're anthropic, would you give money to your competitor? I'll also add that Google is already a player in that space so more likely to easily sell it off.