WSJ Tech News Briefing
TNB Tech Minute: OpenAI Leases Ohio Data Center
· Summarized
Key takeaways
- OpenAI’s new Ohio data center represents a major investment in AI infrastructure and sustainable energy.
- Nvidia is strategically supporting AI development while managing its financial risks through partnerships.
- Uber’s collaboration with Zip Line could revolutionize delivery speeds and extend service reach using drone technology.
- Alibaba is strategically refocusing its business by selling off non-core divisions like Lingxi Games to bolster its core business areas.
Summary
OpenAI’s Ohio Data Center Deal and AI Expansion
OpenAI has entered a significant 10-gigawatt data center lease in Ohio, partnering with SoftBank's SB Energy to support a major AI hub. The deal is backed by Nvidia, which aims to help raise debt financing while limiting its risk exposure. Nvidia will also serve as the exclusive chip provider for the first half of the Ohio project and take an equity stake in SB Energy. The campus, situated partly on a former uranium enrichment site, is expected to generate enough energy to power 7 million homes, showcasing a substantial push towards sustainable energy infrastructure to support AI development.
Uber’s Drone Delivery Initiative with Zip Line
Uber has announced a partnership with Zip Line, a drone startup, to launch drone deliveries in Dallas and Houston by the end of the year, with plans to expand nationwide. Uber Eats will utilize Zip Line’s drone network to accelerate delivery times, aiming to fulfill orders within 5 to 10 minutes and extend services to broader areas beyond urban centers. Additionally, Uber is investing undisclosed amounts in Zip Line, reinforcing its commitment to innovative delivery solutions and expanding its logistics capabilities.
Alibaba’s Sale of Lingxi Games and Strategic Focus Shift
Alibaba Group is selling its Lingxi Games division for at least $1.5 billion to an Asian private equity firm. This move aligns with Alibaba's broader strategy to divest non-core businesses, aiming to improve profitability and strengthen financial stability. The company’s focus is shifting towards AI and e-commerce investments, as it streamlines its portfolio to prioritize areas with higher growth potential.
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Show notes
Plus: Uber partners with drone startup Zipline to make drone deliveries. And Alibaba sells its Lingxi Games videogame business. Julie Chang hosts.
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