Tech
OpenAI big chip orders dwarf its revenues—for now
OpenAI is ordering hundreds of billions of dollars worth of chips in the artificial intelligence race, raising questions among investors about how the startup will finance these purchases.
In less than a month, the San Francisco startup behind ChatGPT has committed to acquiring a staggering 26 gigawatts of sophisticated data processors from Nvidia, AMD, and Broadcom—more than 10 million units that would consume power equivalent to 20 standard nuclear reactors.
“They will need hundreds of billions of dollars to live up to their obligations,” said Gil Luria, managing director at D.A. Davidson, a financial consulting firm.
The challenge is daunting: OpenAI doesn’t expect to be profitable until 2029 and is forecasting billions in losses this year, despite generating about $13 billion in revenue.
OpenAI declined to comment on its financing strategy.
However, in a CNBC interview, co-founder Greg Brockman acknowledged the difficulty of building sufficient computing infrastructure to handle the “avalanche of demand” for AI, noting that creative financing mechanisms will be necessary.
Creative financing
Nvidia, AMD, and Broadcom all declined to discuss specific deals with OpenAI.
Silicon Valley-based Nvidia has announced plans to invest up to $100 billion in OpenAI over several years to build the world’s largest AI infrastructure.
OpenAI would use those funds to buy chips from Nvidia in a game of “circular financing,” with Nvidia recouping its investment by taking a share in OpenAI, one of its biggest customers and the world’s hottest AI company.
AMD has taken a different approach, offering OpenAI options to acquire equity in AMD—a transaction considered unusual in financial circles and a sign that it is AMD that is seeking to seize some of OpenAI’s limelight with investors.
“It represents another unhealthy dynamic,” Luria said, suggesting the arrangement reveals AMD’s desperation to compete in a market dominated by Nvidia.
Crash or soar?
The stakes couldn’t be higher.
OpenAI co-founder and CEO Sam Altman “has the power to crash the global economy for a decade or take us all to the promised land,” Bernstein Research senior analyst Stacy Rasgon wrote in a note to investors this month.
“Right now, we don’t know which is in the cards.”
Even selling stakes in OpenAI at its current $500 billion valuation won’t cover the startup’s chip commitments, according to Luria, meaning the company will need to borrow money.
One possibility: using the chips themselves as collateral for loans.
Meanwhile, deep-pocketed competitors like Google and Meta can fund their AI efforts from massive profits generated by their online advertising businesses—a luxury OpenAI doesn’t have.
The unbridled spending has sparked concerns about a speculative bubble reminiscent of the late 1990s dot-com frenzy, which collapsed and wiped out massive investments.
However, some experts see key differences. “There is very real demand today for AI in a way that seems a little different than the boom in the 1990s,” said Josh Lerner, a Harvard Business School professor of investment banking.
CFRA analyst Angelo Zino pointed to OpenAI’s remarkable growth and more than 800 million ChatGPT users as evidence that a partnership approach to financing makes sense.
Still, Lerner acknowledges the uncertainty: “It’s a real dilemma. How does one balance this future potential with the speculative nature” of its investments today?
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Tech
This Jammer Wants to Block Always-Listening AI Wearables. It Probably Won’t Work
Deveillance also claims the Spectre can find nearby microphones by detecting radio frequencies (RF), but critics say finding a microphone via RF emissions is not effective unless the sensor is immediately beside it.
“If you could detect and recognize components via RF the way Spectre claims to, it would literally be transformative to technology,” Jordan wrote in a text to WIRED after he built a device to test detecting RF signatures in microphones. “You’d be able to do radio astronomy in Manhattan.”
Deveillance is also looking at ways to integrate nonlinear junction detection (NLJD), a very high-frequency radio signal used by security professionals to find hidden mics and bugs. NLJD detectors are expensive and used primarily in professional contexts like military operations.
Even if a device could detect a microphone’s exact location, objects around a room can change how the frequencies spread and interact. The emitted frequencies could also be a problem. There haven’t been adequate studies to show what effects ultrasonic frequencies have on the human ear, but some people and many pets can hear them and find them obnoxious or even painful. Baradari acknowledges that her team needs to do more testing to see how pets are affected.
“They simply cannot do this,” engineer and YouTuber Dave Jones (who runs the channel EEVblog) wrote in an email to WIRED. “They are using the classic trick of using wording to imply that it will detect every type of microphone, when all they are probably doing is scanning for Bluetooth audio devices. It’s totally lame.” Baradari reiterates that the Spectre uses a combination of RF and Bluetooth low energy to detect microphones.
WIRED asked Baradari to share any evidence of the Spectre’s effectiveness at identifying and blocking microphones in a person’s vicinity. Baradari shared a few short videoclips of people putting their phones to their ears listening to audioclips—which were presumably jammed by the Spectre—but these videos do little to prove that the device works.
Future Imperfect
Baradari has taken the critiques in stride, acknowledging that the tech is still in development. “I actually appreciate those comments, because they’re making me think and see more things as well,” Baradari says. “I do believe that with the ideas that we’re having and integrating into one device, these concerns can be addressed.”
People were quick to poke fun at the Spectre I online, calling the technology the cone of silence from Dune. Now, the Deveillance website reads, “Our goal is to make the cone of silence become reality.”
John Scott-Railton, a cybersecurity researcher at Citizen Lab, who is critical of the Spectre I, lauded the device’s virality as an indication of the real hunger for these kinds of gadgets to win back our privacy.
“The silver lining of this blowing up is that it is a Ring-like moment that highlights how quickly and intensely consumer attitudes have shifted around pervasive recording devices,” says Scott-Railton. “We need to be building products that do all the cool things that people want but that don’t have the massive privacy- and consent-violation undertow. You need device-level controls, and you need regulations of the companies that are doing this.”
Cooper Quintin, a senior staff technologist at the Electronic Frontier Foundation, echoed those sentiments, even if critics believe Deveillance’s efforts to be flawed.
“If this technology works, it could be a boon for many,” Quintin wrote in an email to WIRED. “It is nice to see a company creating something to protect privacy instead of working on new and creative ways to extract data from us.”
Tech
I’ve Tried Every Pixel Phone Ever Made—Here Are the Best to Buy Right Now
Portrait Light: You can change up the lighting in your portrait selfies after you take them by opening them up in Google Photos, tapping the Edit button, and heading to Actions > Portrait Light. This adds an artificial light you can place anywhere in the photo to brighten up your face and erase that 5 o’clock shadow. Use the slider at the bottom to tweak the strength of the light. It also works on older Portrait mode photos you may have captured. It works only on faces.
Health and Accessibility Features
Cough & Snore Detection (Tensor G2 and newer): On the Pixel 7 and newer, you can have your Pixel detect if you cough and snore when sleeping, provided you place your Pixel near your bed before you nod off. This will work only if you use Google’s Bedtime mode function, which you can turn on by heading to Settings > Digital Wellbeing & Parental Controls > Bedtime Mode.
Guided Frame (Tensor G2 and newer): For blind or low-vision people, the camera app can now help take a selfie with audio cues (it works with the front and rear cameras). You’ll need to enable TalkBack for this to work (Settings > Accessibility > TalkBack). Then open the camera app. It will automatically help you frame the shot.
Simple View: This mode makes the font size bigger, along with other elements on the screen, like widgets and quick-settings tiles. It also increases touch sensitivity, all of which hopefully makes it easier to see and use the screen. You can enable it by heading to Settings > Accessibility > Simple View.
Safety and Security Features
Theft Protection: This is a broader Android 15 feature, but essentially, Google’s algorithms can figure out if someone snatches your Pixel out of your hands. If they’re trying to get away, the device automatically locks. Additionally, with another device, you can use Remote Lock to lock your stolen Pixel with your phone number and a security answer. To toggle these features on, go to Settings > Security & privacy > Device unlock > Theft protection.
Identity Check: If your Pixel detects you’re in a new location, Identity Check will require your fingerprint or face authentication before you can make any changes to sensitive settings, offering extra peace of mind in case you lose your phone or if it’s stolen. You can enable this in Settings > Security & privacy > Device unlock > Theft protection > Identity Check.
Courtesy of Google
Private Space: Another Android 15 addition, Pixel phones finally have a feature that lets you hide and lock select apps. You can use a separate Google account, set a lock, and install any app to hide away. To set it all up, head to Settings > Security & privacy > Private space.
Satellite eSOS (Pixel 9 and Pixel 10 series, excluding Pixel 9a): Like Apple’s SOS feature on iPhones, you can now reach emergency contacts or emergency services even when you don’t have cell service or Wi-Fi connectivity. It’s not just available in the continental US, but also in Hawaii, Alaska, Canada, and even Europe.
Tech
I’ve Tried Every Pixel Phone Ever Made—Here Are the Best to Buy Right Now
Portrait Light: You can change up the lighting in your portrait selfies after you take them by opening them up in Google Photos, tapping the Edit button, and heading to Actions > Portrait Light. This adds an artificial light you can place anywhere in the photo to brighten up your face and erase that 5 o’clock shadow. Use the slider at the bottom to tweak the strength of the light. It also works on older Portrait mode photos you may have captured. It works only on faces.
Health and Accessibility Features
Cough & Snore Detection (Tensor G2 and newer): On the Pixel 7 and newer, you can have your Pixel detect if you cough and snore when sleeping, provided you place your Pixel near your bed before you nod off. This will work only if you use Google’s Bedtime mode function, which you can turn on by heading to Settings > Digital Wellbeing & Parental Controls > Bedtime Mode.
Guided Frame (Tensor G2 and newer): For blind or low-vision people, the camera app can now help take a selfie with audio cues (it works with the front and rear cameras). You’ll need to enable TalkBack for this to work (Settings > Accessibility > TalkBack). Then open the camera app. It will automatically help you frame the shot.
Simple View: This mode makes the font size bigger, along with other elements on the screen, like widgets and quick-settings tiles. It also increases touch sensitivity, all of which hopefully makes it easier to see and use the screen. You can enable it by heading to Settings > Accessibility > Simple View.
Safety and Security Features
Theft Protection: This is a broader Android 15 feature, but essentially, Google’s algorithms can figure out if someone snatches your Pixel out of your hands. If they’re trying to get away, the device automatically locks. Additionally, with another device, you can use Remote Lock to lock your stolen Pixel with your phone number and a security answer. To toggle these features on, go to Settings > Security & privacy > Device unlock > Theft protection.
Identity Check: If your Pixel detects you’re in a new location, Identity Check will require your fingerprint or face authentication before you can make any changes to sensitive settings, offering extra peace of mind in case you lose your phone or if it’s stolen. You can enable this in Settings > Security & privacy > Device unlock > Theft protection > Identity Check.
Courtesy of Google
Private Space: Another Android 15 addition, Pixel phones finally have a feature that lets you hide and lock select apps. You can use a separate Google account, set a lock, and install any app to hide away. To set it all up, head to Settings > Security & privacy > Private space.
Satellite eSOS (Pixel 9 and Pixel 10 series, excluding Pixel 9a): Like Apple’s SOS feature on iPhones, you can now reach emergency contacts or emergency services even when you don’t have cell service or Wi-Fi connectivity. It’s not just available in the continental US, but also in Hawaii, Alaska, Canada, and even Europe.
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