OpenAI plans to Shift Compute Needs from Microsoft to SoftBank

Softbank & OpenAI
Softbank & OpenAI

OpenAI is forecasting a major shift in the next five years around who it gets most of its computing power from, The Information reported on Friday.

By 2030, OpenAI expects to get three-quarters of its data center capacity from Stargate, a project that’s expected to be heavily financed by SoftBank, one of OpenAI’s newest financial backers. That represents a major shift away from Microsoft, OpenAI’s biggest shareholder, who fulfills most of the startup’s power needs today.

The change won’t happen overnight. OpenAI still plans to increase its spending on Microsoft-owned data centers in the next few years.

During that time, OpenAI’s overall costs are set to grow dramatically. The Information reports that OpenAI projects to burn $20 billion in cash during 2027, far more than the $5 billion it reportedly burned through in 2024. By 2030, OpenAI reportedly forecasts that its costs around running AI models, also known as inference, will outpace what the startup spends on training AI models.

SOURCE ARTICLE:

https://techcrunch.com/2025/02/21/report-openai-plans-to-shift-compute-needs-from-microsoft-to-softbank/?utm_source=tldrai

DeepSeek to Open Source Parts of Online Services Code

DeepSeek
DeepSeek

Chinese AI lab DeepSeek plans to open source portions of its online services’ code as part of an “open source week” event next week.

DeepSeek will open source five code repositories that have been “documented, deployed and battle-tested in production,” the company said in a post on X on Thursday.

Code repositories are storage locations for software development assets, and typically contain source code as well as configuration files and project documentation.

“As part of the open-source community, we believe that every line shared becomes collective momentum that accelerates the journey,” the company wrote. “Daily unlocks are coming soon. No ivory towers — just pure garage-energy and community-driven innovation.”

DeepSeek, which has a history of making its AI models openly available under permissive licenses, has lit a fire under AI incumbents like OpenAI. In recent social media posts, OpenAI CEO Sam Altman admitted DeepSeek has lessened OpenAI’s technological lead, and said that OpenAI would consider open sourcing more of its technology in the future.

SOURCE ARTICLE:

https://techcrunch.com/2025/02/21/deepseek-to-open-source-parts-of-online-services-code/?utm_source=tldrai