OpenAI's Sam Altman Invests $20M In Startup Using Solar Power To Address AI's Massive Energy Appetite

OpenAI CEO Sam Altman has invested $20 million in Exowatt, an energy startup aiming to address the soaring electricity demands of artificial intelligence (AI) data centers.

What Happened: Altman, along with venture capital firm Andreessen Horowitz, has backed Exowatt, a company focusing on sustainable energy solutions for large data centers, reported The Wall Street Journal on Monday.

Exowatt is developing a novel approach to solar power and energy storage to meet the energy needs of AI data centers.

Altman’s investment in Exowatt underscores the growing concern over the energy consumption of AI data centers. The surge in demand for electricity is not only a threat to the industry’s growth but also hinders the transition to clean energy.

Exowatt’s solution involves the use of solar lenses to convert sunlight into heat, which is then stored in basic materials. This stored energy can be used to generate electricity, providing a cost-effective and sustainable power source for data centers.

Exowatt’s CEO, Hannan Parvizian, emphasized that the company’s approach is unique due to its combination of solar and low-cost heat batteries in a single unit. The company plans to deploy its first units for data-center customers later this year.

"You don't have to go back to fossil fuels to solve the data-center energy problem…That's counterproductive," Exowatt's CEO, said in an interview. 

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Why It Matters: Altman’s investment in Exowatt comes on the heels of his advocacy for a global coalition to support the development of AI infrastructure, including energy and data center capacity. Altman has been actively engaging with investors and government officials to address concerns about the supply of essential infrastructure for AI.

Altman has also been warning about the increasing energy demands of AI development, stressing the need for an energy breakthrough to sustain future advances in AI. The data centers currently account for 1-1.5% of global electricity use, according to the International Energy Agency.

Altman’s investment in Exowatt also reflects his broader interest in energy solutions. Despite being a prominent figure in the AI sector, much of Altman’s estimated wealth isn’t rooted in OpenAI. His wealth primarily stems from his investments in venture capital funds and startups.

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