×
Data Centers Are Crushing the Planet. Can Space Save Us?

Data Centers Are Crushing the Planet. Can Space Save Us?

The companies frantically building and leasing data centers are well aware that they’re straining grids, driving emissions, and guzzling water. The electricity demand of AI data centers in particular could increase as much as 165% by 2030. Over half of the energy powering these sprawling facilities comes from fossil fuels, threatening to reverse progress toward addressing the climate crisis.

Some of the biggest names in artificial intelligence say they have a solution: Just stick these colossal computer clusters in space. OpenAI CEO Sam Altman told manosphere podcaster Theo Vonn that he considers a massive expansion of data centers inevitable. “I do guess a lot of the world gets covered in data centers over time,” he said. (This is not, in fact, inevitable, but the result of unfathomably wealthy companies choosing to invest unfathomably large sums of money. Altman has speculated that he would quite literally put trillions into it, and OpenAI is part of the consortium behind the $500 billion Stargate project.)

Altman is aware, however, that some people might not like this. “I’ve spoken with environmentalists,” he said. Then, he offered a suggestion. “Maybe we put [data centers] in space,” he said. “I wish I had, like, more concrete answers for you, but like, we’re stumbling through this.”

Now, the idea of hurling data centers, the largest of which can cover over a million square feet, into orbit may seem impractical. But Altman’s not alone in considering it. Jeff Bezos and Eric Schmidt are also betting on the idea.

Altman has proposed creating a Dyson sphere of data centers around the sun, referring to a hypothetical megastructure built around a star to capture much of its energy. The rather glaring downside to this is that building it would likely require more resources than exist on Earth, and could make the planet uninhabitable. But somewhat more realistic plans are inching closer to reality. Startups like Starcloud, Axiom, and Lonestar Data Systems have raised millions to develop them.

There are at least 5,400 data centers in the United States, ranging from micro-size to thousand-server “hyperscalers,” and the number is growing fast. These facilities are expected to consume up to 12% of the nation’s electricity by 2028. Putting them in space, then, can seem like a panacea: solving the energy-use problem with 24/7 solar power, and freeing communities from the burden of air, noise, and water pollution.

There’s some real science behind this. Ali Hajimiri, an electrical engineer and professor with Caltech’s Space Solar Power Project, sought a patent for a “massively parallel computational system in space”—as in, a data center—back in 2016. Since then, launch costs have gone down (to around $1,500 per kilogram, by one estimate), and solar panels have gotten lighter and more efficient. Hajimiri and his colleagues recently proposed a lightweight space-based solar power system that could generate electricity at 10 cents per kilowatt-hour, significantly cheaper at scale than comparable systems here on Earth.

Such technology theoretically could power orbital data centers like those Altman imagines, though Hajimiri is still not sure when they could be built at the kind of scale companies like OpenAI demand. “I never want to say something cannot be done,” he said. “But there are challenges associated with it.”

For one thing, the systems he imagines process data relatively slowly compared to those on terra firma. They’d be constantly bombarded by radiation, and “obsolescence would be a problem” because making repairs or upgrades would be confoundingly difficult. Hajimiri believes that data centers in space could, someday, be a viable solution, but he hesitates to say when that day might come. “Definitely it would be doable in a few years,” he said. “The question is how effective they would be and how cost-effective they would become.”

The idea of simply putting data centers in orbit is not limited to the offhand musings of techies or the deeper thoughts of academics. Even some elected officials in cities where companies like Amazon hope to build data centers are raising the point. Tucson, Arizona, councilmember Nikki Lee waxed poetic about their potential during an August hearing, in which the council unanimously voted down a proposed data center in their city.

“A lot of people are saying data centers don’t belong in the desert,” Lee said. But “if this is truly a national priority,” then the focus must be on “putting federal research and development dollars into looking at data centers that will exist in space. And that may sound wild to you all and a little science fiction, but it’s actually happening.”

That’s true, but it’s happening on an experimental scale, not an industrial one. A startup called Starcloud hoped to launch a refrigerator-sized satellite housing a few Nvidia chips in August, but the launch date was pushed back. Lonestar Data Systems landed a miniature data center, carrying precious information like an Imagine Dragons song, on the moon a few months ago, though the lander tipped over and died in the attempt. More such launches are planned for the coming months. But it’s “very hard to predict how quickly this idea will become economically feasible,” said Matthew Weinzierl, a Harvard University economist who studies market forces in space. “Space-based data centers may well have some niche uses, such as for processing space-based data and providing national security capabilities,” he said. “To be a meaningful rival to terrestrial centers, however, they will need to compete on cost and service quality like anything else.”

For now, it’s much more expensive to put a data center in space than it is to put one in, say, Virginia’s Data Center Valley, where power demand could double in the next decade if left unregulated. And as long as staying on Earth remains cheaper, profit-motivated companies will favor terrestrial data center expansion.

Still, there is one factor that might encourage OpenAI and others to look toward the heavens: there isn’t much regulation up there. Building data centers on Earth requires obtaining municipal permits, and companies can be stymied by local governments whose residents worry that data center development might siphon their water, raise their electricity bills, or overheat their planet. In space, there aren’t any neighbors to complain, said Michelle Hanlon, a political scientist and lawyer who leads the Center for Air and Space Law at the University of Mississippi. “If you are a U.S. company seeking to put data centers in space, then the sooner the better, before Congress is like, ‘Oh, we need to regulate that.’”

This article originally appeared in Grist at https://grist.org/climate-energy/data-centers-gobble-earths-resources-what-if-we-took-them-to-space-instead/. Grist is a nonprofit, independent media organization dedicated to telling stories of climate solutions and a just future. Learn more at Grist.org.

Source link
#Data #Centers #Crushing #Planet #Space #Save

Today’s launch of AST SpaceMobile’s BlueBird 7 satellite aboard Blue Origin’s reusable New Glenn rocket was a partial success. The New Glenn touched down on its landing pad without incident, making it the second launch and landing for the first stage booster, and officially giving Jeff Bezos a reusable launch vehicle. Unfortunately for AST SpaceMobile, the mission was less successful. Its cell-tower-in-space was delivered to a lower orbit than expected by the second stage of the launch vehicle, rendering it functionally useless.

While the satellite separated from the launch vehicle and powered on, the altitude is too low to sustain operations with its on-board thruster technology and will de-orbited.

Bezos, for his part, posted a video of the landing on X without comment.

#Blue #Origin #successfully #reused #Glenn #rocketBlue Origin,News,Science,Space">Blue Origin successfully reused its New Glenn rocketToday’s launch of AST SpaceMobile’s BlueBird 7 satellite aboard Blue Origin’s reusable New Glenn rocket was a partial success. The New Glenn touched down on its landing pad without incident, making it the second launch and landing for the first stage booster, and officially giving Jeff Bezos a reusable launch vehicle. Unfortunately for AST SpaceMobile, the mission was less successful. Its cell-tower-in-space was delivered to a lower orbit than expected by the second stage of the launch vehicle, rendering it functionally useless.While the satellite separated from the launch vehicle and powered on, the altitude is too low to sustain operations with its on-board thruster technology and will de-orbited.Bezos, for his part, posted a video of the landing on X without comment.#Blue #Origin #successfully #reused #Glenn #rocketBlue Origin,News,Science,Space

Today’s launch of AST SpaceMobile’s BlueBird 7 satellite aboard Blue Origin’s reusable New Glenn rocket was a partial success. The New Glenn touched down on its landing pad without incident, making it the second launch and landing for the first stage booster, and officially giving Jeff Bezos a reusable launch vehicle. Unfortunately for AST SpaceMobile, the mission was less successful. Its cell-tower-in-space was delivered to a lower orbit than expected by the second stage of the launch vehicle, rendering it functionally useless.

While the satellite separated from the launch vehicle and powered on, the altitude is too low to sustain operations with its on-board thruster technology and will de-orbited.

Bezos, for his part, posted a video of the landing on X without comment.

#Blue #Origin #successfully #reused #Glenn #rocketBlue Origin,News,Science,Space">Blue Origin successfully reused its New Glenn rocket

Today’s launch of AST SpaceMobile’s BlueBird 7 satellite aboard Blue Origin’s reusable New Glenn rocket was a partial success. The New Glenn touched down on its landing pad without incident, making it the second launch and landing for the first stage booster, and officially giving Jeff Bezos a reusable launch vehicle. Unfortunately for AST SpaceMobile, the mission was less successful. Its cell-tower-in-space was delivered to a lower orbit than expected by the second stage of the launch vehicle, rendering it functionally useless.

While the satellite separated from the launch vehicle and powered on, the altitude is too low to sustain operations with its on-board thruster technology and will de-orbited.

Bezos, for his part, posted a video of the landing on X without comment.

#Blue #Origin #successfully #reused #Glenn #rocketBlue Origin,News,Science,Space
OpenAI has been all over the news recently, whether that news is about acquisitions, competition with Anthropic, or bigger debates about AI’s impact on society.

On the latest episode of TechCrunch’s Equity podcast, Kirsten Korosec, Sean O’Kane, and I did our best to round up all the latest OpenAI news. While the company’s latest acquisitions seem to be classic acqui-hires, Sean suggested they also address “two big existential problems that OpenAI is trying to solve right now.”

First, with the team behind personal finance startup Hiro, the company may be hoping to  come up with a product that has “more hooks than just a chatbot, and maybe something worth paying more for.” And with new media startup TBPN, OpenAI could be looking to “better shape its image in the public eye, which lately has not been great.”

Read a preview of our conversation, edited for length and clarity below.

Anthony: [We have] two deals that are worth mentioning, one is that OpenAI acquired this personal finance startup called Hiro. And that comes after another deal that was literally announced when we were recording our last episode of Equity, so we didn’t get to talk about it: OpenAI had also acquired TBPN — a business talk show, like a new media company.

And I think both of these deals are pretty small compared to the scale of OpenAI. These are not things that people expect to really change the course of their business or anything like that, but they’re interesting because it suggests that there’s still this [attitude of,] “Let’s try out different things.”

Especially [with] the TBPN deal […] particularly at this time when it feels like OpenAI, from all the reporting we’re reading, is also trying to really refocus on making ChatGPT and its GPT models really competitive in an enterprise context with programmers.

Techcrunch event

San Francisco, CA | October 13-15, 2026

Is running a tech talk show, should that really be on the to-do list?

Kirsten: No, this should not be on the to-do list. That’s it. 

I do want to mention Hiro because to me, that’s an interesting one, because Julie Bort, our venture editor, super talented, she wrote about this and was I think the first to write about it. She dug in a little bit and basically this looks like an acqui-hire. The company is folding. They basically said, “By this date, you won’t be able to access this anymore.”

This is a personal finance startup. And they only launched two years ago. So this absolutely is about getting talent on board. So I’m very curious to see if OpenAI is going to be just absorbing them into the ether at OpenAI, or if they’re actually interested in some sort of personal finance product that they want to work on. To me, it’s not really clear.

Sean: I think you look at both of these as acqui-hires to a certain extent. I mean, the TBPN acquisition, allegedly they are going to retain their editorial independence on the show that they make every day. And all respect to those guys who’ve put that out there and gotten it off the ground so quickly and grown it into what it has become.

I think any person who follows the media should have a healthy dose of skepticism that when you acquire something like that and you put the people who make the show under the org of the public policy people and comms or marketing adjacent people higher up at the company making the acquisition, that you could have good questions about whether or not saying “editorial independence” is enough. It’s not an incantation that just works.

But you know, what’s interesting to me about these two, while they are similar in their acqui-hire-ness, I think they both represent two major problems that OpenAI is facing.

One is Hiro. OpenAI has a very successful product in ChatGPT. As far as whether or not that will actually ever make them enough money to become a sustainable business that’s not raising the largest private rounds in the world, ever, to keep things going, is a big question. And they also seem to be struggling to keep up on the enterprise side of things where the real money seems to be, so bringing in a team like this seems like taking a shot at, “What else can we do?” 

The guy who founded Hiro seems to have a serial entrepreneur streak of creating consumer apps, and so this seems to me like a bet on them being able to come up with something else that may have more hooks than just a chatbot, and maybe something worth paying more for.

And then TBPN is an acquisition made to help better represent what the company does and better shape its image in the public eye, which lately has not been great and certainly is under more questions now than just a few weeks ago, because Ronan Farrow just led a report at The New Yorker that dropped suspiciously right around the time that this and a couple other announcements from OpenAI came out last week. 

I think those are two big existential problems that OpenAI is trying to solve right now.

Kirsten: So the thing that you didn’t say is, there’s Anthropic kind of looming in — not in the shadows, I mean, they’re very much taking up a lot of space here — but they’re having a lot of success on the enterprise side of things.

It feels like these guys are competitors and they also feel like very different companies in a lot of ways. Anthony, I’m wondering if you see them as direct competition to OpenAI? Or [are they] just finding their stride in enterprise and in a way, these two companies are clearly going to coexist and they’re really not directly competing with each other — maybe on talent, but not necessarily as we initially thought of them?

Anthony: I think they’re directly competing with each other. There’s definitely a scenario where if AI as an industry, as a technology, is as successful as its proponents hope for, they could both be very successful companies, they could just be the one and two. And the success of one does not necessarily mean that the other will just fade into obscurity. 

And again, none of this is official, but there’s just been a lot of reporting around how it seems like OpenAI, more than anyone, is obsessed with and upset about Anthropic’s rise. 

Our reporter Lucas [Ropek], he did a great piece over the weekend about the HumanX conference, where he was talking to everyone there and they’re sort of like, “Yeah, ChatGPT is fine, too,” but like they were all about Claude Code. And I think that is exactly what OpenAI is worried about.

Because again, in theory, there could be many other opportunities for generative AI, but it feels like the big growth area, the area where the most money is and where they could at least see a path to having a sustainable business in the future, is in these enterprise and coding tools.

#OpenAIs #existential #questions #TechCrunchAnthropic,Equity podcast,OpenAI">OpenAI’s existential questions | TechCrunch


OpenAI has been all over the news recently, whether that news is about acquisitions, competition with Anthropic, or bigger debates about AI’s impact on society.

On the latest episode of TechCrunch’s Equity podcast, Kirsten Korosec, Sean O’Kane, and I did our best to round up all the latest OpenAI news. While the company’s latest acquisitions seem to be classic acqui-hires, Sean suggested they also address “two big existential problems that OpenAI is trying to solve right now.”







First, with the team behind personal finance startup Hiro, the company may be hoping to  come up with a product that has “more hooks than just a chatbot, and maybe something worth paying more for.” And with new media startup TBPN, OpenAI could be looking to “better shape its image in the public eye, which lately has not been great.”

Read a preview of our conversation, edited for length and clarity below.

Anthony: [We have] two deals that are worth mentioning, one is that OpenAI acquired this personal finance startup called Hiro. And that comes after another deal that was literally announced when we were recording our last episode of Equity, so we didn’t get to talk about it: OpenAI had also acquired TBPN — a business talk show, like a new media company.

And I think both of these deals are pretty small compared to the scale of OpenAI. These are not things that people expect to really change the course of their business or anything like that, but they’re interesting because it suggests that there’s still this [attitude of,] “Let’s try out different things.”

Especially [with] the TBPN deal […] particularly at this time when it feels like OpenAI, from all the reporting we’re reading, is also trying to really refocus on making ChatGPT and its GPT models really competitive in an enterprise context with programmers.

	
		
		Techcrunch event
		
			
			
									San Francisco, CA
													|
													October 13-15, 2026
							
			
		
	


Is running a tech talk show, should that really be on the to-do list?

Kirsten: No, this should not be on the to-do list. That’s it. 

I do want to mention Hiro because to me, that’s an interesting one, because Julie Bort, our venture editor, super talented, she wrote about this and was I think the first to write about it. She dug in a little bit and basically this looks like an acqui-hire. The company is folding. They basically said, “By this date, you won’t be able to access this anymore.”







This is a personal finance startup. And they only launched two years ago. So this absolutely is about getting talent on board. So I’m very curious to see if OpenAI is going to be just absorbing them into the ether at OpenAI, or if they’re actually interested in some sort of personal finance product that they want to work on. To me, it’s not really clear.

Sean: I think you look at both of these as acqui-hires to a certain extent. I mean, the TBPN acquisition, allegedly they are going to retain their editorial independence on the show that they make every day. And all respect to those guys who’ve put that out there and gotten it off the ground so quickly and grown it into what it has become.

I think any person who follows the media should have a healthy dose of skepticism that when you acquire something like that and you put the people who make the show under the org of the public policy people and comms or marketing adjacent people higher up at the company making the acquisition, that you could have good questions about whether or not saying “editorial independence” is enough. It’s not an incantation that just works.

But you know, what’s interesting to me about these two, while they are similar in their acqui-hire-ness, I think they both represent two major problems that OpenAI is facing.

One is Hiro. OpenAI has a very successful product in ChatGPT. As far as whether or not that will actually ever make them enough money to become a sustainable business that’s not raising the largest private rounds in the world, ever, to keep things going, is a big question. And they also seem to be struggling to keep up on the enterprise side of things where the real money seems to be, so bringing in a team like this seems like taking a shot at, “What else can we do?” 

The guy who founded Hiro seems to have a serial entrepreneur streak of creating consumer apps, and so this seems to me like a bet on them being able to come up with something else that may have more hooks than just a chatbot, and maybe something worth paying more for.

And then TBPN is an acquisition made to help better represent what the company does and better shape its image in the public eye, which lately has not been great and certainly is under more questions now than just a few weeks ago, because Ronan Farrow just led a report at The New Yorker that dropped suspiciously right around the time that this and a couple other announcements from OpenAI came out last week. 

I think those are two big existential problems that OpenAI is trying to solve right now.







Kirsten: So the thing that you didn’t say is, there’s Anthropic kind of looming in — not in the shadows, I mean, they’re very much taking up a lot of space here — but they’re having a lot of success on the enterprise side of things.

It feels like these guys are competitors and they also feel like very different companies in a lot of ways. Anthony, I’m wondering if you see them as direct competition to OpenAI? Or [are they] just finding their stride in enterprise and in a way, these two companies are clearly going to coexist and they’re really not directly competing with each other — maybe on talent, but not necessarily as we initially thought of them?

Anthony: I think they’re directly competing with each other. There’s definitely a scenario where if AI as an industry, as a technology, is as successful as its proponents hope for, they could both be very successful companies, they could just be the one and two. And the success of one does not necessarily mean that the other will just fade into obscurity. 

And again, none of this is official, but there’s just been a lot of reporting around how it seems like OpenAI, more than anyone, is obsessed with and upset about Anthropic’s rise. 

Our reporter Lucas [Ropek], he did a great piece over the weekend about the HumanX conference, where he was talking to everyone there and they’re sort of like, “Yeah, ChatGPT is fine, too,” but like they were all about Claude Code. And I think that is exactly what OpenAI is worried about.

Because again, in theory, there could be many other opportunities for generative AI, but it feels like the big growth area, the area where the most money is and where they could at least see a path to having a sustainable business in the future, is in these enterprise and coding tools.


#OpenAIs #existential #questions #TechCrunchAnthropic,Equity podcast,OpenAI

acquisitions, competition with Anthropic, or bigger debates about AI’s impact on society.

On the latest episode of TechCrunch’s Equity podcast, Kirsten Korosec, Sean O’Kane, and I did our best to round up all the latest OpenAI news. While the company’s latest acquisitions seem to be classic acqui-hires, Sean suggested they also address “two big existential problems that OpenAI is trying to solve right now.”

First, with the team behind personal finance startup Hiro, the company may be hoping to  come up with a product that has “more hooks than just a chatbot, and maybe something worth paying more for.” And with new media startup TBPN, OpenAI could be looking to “better shape its image in the public eye, which lately has not been great.”

Read a preview of our conversation, edited for length and clarity below.

Anthony: [We have] two deals that are worth mentioning, one is that OpenAI acquired this personal finance startup called Hiro. And that comes after another deal that was literally announced when we were recording our last episode of Equity, so we didn’t get to talk about it: OpenAI had also acquired TBPN — a business talk show, like a new media company.

And I think both of these deals are pretty small compared to the scale of OpenAI. These are not things that people expect to really change the course of their business or anything like that, but they’re interesting because it suggests that there’s still this [attitude of,] “Let’s try out different things.”

Especially [with] the TBPN deal […] particularly at this time when it feels like OpenAI, from all the reporting we’re reading, is also trying to really refocus on making ChatGPT and its GPT models really competitive in an enterprise context with programmers.

Techcrunch event

San Francisco, CA | October 13-15, 2026

Is running a tech talk show, should that really be on the to-do list?

Kirsten: No, this should not be on the to-do list. That’s it. 

I do want to mention Hiro because to me, that’s an interesting one, because Julie Bort, our venture editor, super talented, she wrote about this and was I think the first to write about it. She dug in a little bit and basically this looks like an acqui-hire. The company is folding. They basically said, “By this date, you won’t be able to access this anymore.”

This is a personal finance startup. And they only launched two years ago. So this absolutely is about getting talent on board. So I’m very curious to see if OpenAI is going to be just absorbing them into the ether at OpenAI, or if they’re actually interested in some sort of personal finance product that they want to work on. To me, it’s not really clear.

Sean: I think you look at both of these as acqui-hires to a certain extent. I mean, the TBPN acquisition, allegedly they are going to retain their editorial independence on the show that they make every day. And all respect to those guys who’ve put that out there and gotten it off the ground so quickly and grown it into what it has become.

I think any person who follows the media should have a healthy dose of skepticism that when you acquire something like that and you put the people who make the show under the org of the public policy people and comms or marketing adjacent people higher up at the company making the acquisition, that you could have good questions about whether or not saying “editorial independence” is enough. It’s not an incantation that just works.

But you know, what’s interesting to me about these two, while they are similar in their acqui-hire-ness, I think they both represent two major problems that OpenAI is facing.

One is Hiro. OpenAI has a very successful product in ChatGPT. As far as whether or not that will actually ever make them enough money to become a sustainable business that’s not raising the largest private rounds in the world, ever, to keep things going, is a big question. And they also seem to be struggling to keep up on the enterprise side of things where the real money seems to be, so bringing in a team like this seems like taking a shot at, “What else can we do?” 

The guy who founded Hiro seems to have a serial entrepreneur streak of creating consumer apps, and so this seems to me like a bet on them being able to come up with something else that may have more hooks than just a chatbot, and maybe something worth paying more for.

And then TBPN is an acquisition made to help better represent what the company does and better shape its image in the public eye, which lately has not been great and certainly is under more questions now than just a few weeks ago, because Ronan Farrow just led a report at The New Yorker that dropped suspiciously right around the time that this and a couple other announcements from OpenAI came out last week. 

I think those are two big existential problems that OpenAI is trying to solve right now.

Kirsten: So the thing that you didn’t say is, there’s Anthropic kind of looming in — not in the shadows, I mean, they’re very much taking up a lot of space here — but they’re having a lot of success on the enterprise side of things.

It feels like these guys are competitors and they also feel like very different companies in a lot of ways. Anthony, I’m wondering if you see them as direct competition to OpenAI? Or [are they] just finding their stride in enterprise and in a way, these two companies are clearly going to coexist and they’re really not directly competing with each other — maybe on talent, but not necessarily as we initially thought of them?

Anthony: I think they’re directly competing with each other. There’s definitely a scenario where if AI as an industry, as a technology, is as successful as its proponents hope for, they could both be very successful companies, they could just be the one and two. And the success of one does not necessarily mean that the other will just fade into obscurity. 

And again, none of this is official, but there’s just been a lot of reporting around how it seems like OpenAI, more than anyone, is obsessed with and upset about Anthropic’s rise. 

Our reporter Lucas [Ropek], he did a great piece over the weekend about the HumanX conference, where he was talking to everyone there and they’re sort of like, “Yeah, ChatGPT is fine, too,” but like they were all about Claude Code. And I think that is exactly what OpenAI is worried about.

Because again, in theory, there could be many other opportunities for generative AI, but it feels like the big growth area, the area where the most money is and where they could at least see a path to having a sustainable business in the future, is in these enterprise and coding tools.

#OpenAIs #existential #questions #TechCrunchAnthropic,Equity podcast,OpenAI">OpenAI’s existential questions | TechCrunch

OpenAI has been all over the news recently, whether that news is about acquisitions, competition with Anthropic, or bigger debates about AI’s impact on society.

On the latest episode of TechCrunch’s Equity podcast, Kirsten Korosec, Sean O’Kane, and I did our best to round up all the latest OpenAI news. While the company’s latest acquisitions seem to be classic acqui-hires, Sean suggested they also address “two big existential problems that OpenAI is trying to solve right now.”

First, with the team behind personal finance startup Hiro, the company may be hoping to  come up with a product that has “more hooks than just a chatbot, and maybe something worth paying more for.” And with new media startup TBPN, OpenAI could be looking to “better shape its image in the public eye, which lately has not been great.”

Read a preview of our conversation, edited for length and clarity below.

Anthony: [We have] two deals that are worth mentioning, one is that OpenAI acquired this personal finance startup called Hiro. And that comes after another deal that was literally announced when we were recording our last episode of Equity, so we didn’t get to talk about it: OpenAI had also acquired TBPN — a business talk show, like a new media company.

And I think both of these deals are pretty small compared to the scale of OpenAI. These are not things that people expect to really change the course of their business or anything like that, but they’re interesting because it suggests that there’s still this [attitude of,] “Let’s try out different things.”

Especially [with] the TBPN deal […] particularly at this time when it feels like OpenAI, from all the reporting we’re reading, is also trying to really refocus on making ChatGPT and its GPT models really competitive in an enterprise context with programmers.

Techcrunch event

San Francisco, CA | October 13-15, 2026

Is running a tech talk show, should that really be on the to-do list?

Kirsten: No, this should not be on the to-do list. That’s it. 

I do want to mention Hiro because to me, that’s an interesting one, because Julie Bort, our venture editor, super talented, she wrote about this and was I think the first to write about it. She dug in a little bit and basically this looks like an acqui-hire. The company is folding. They basically said, “By this date, you won’t be able to access this anymore.”

This is a personal finance startup. And they only launched two years ago. So this absolutely is about getting talent on board. So I’m very curious to see if OpenAI is going to be just absorbing them into the ether at OpenAI, or if they’re actually interested in some sort of personal finance product that they want to work on. To me, it’s not really clear.

Sean: I think you look at both of these as acqui-hires to a certain extent. I mean, the TBPN acquisition, allegedly they are going to retain their editorial independence on the show that they make every day. And all respect to those guys who’ve put that out there and gotten it off the ground so quickly and grown it into what it has become.

I think any person who follows the media should have a healthy dose of skepticism that when you acquire something like that and you put the people who make the show under the org of the public policy people and comms or marketing adjacent people higher up at the company making the acquisition, that you could have good questions about whether or not saying “editorial independence” is enough. It’s not an incantation that just works.

But you know, what’s interesting to me about these two, while they are similar in their acqui-hire-ness, I think they both represent two major problems that OpenAI is facing.

One is Hiro. OpenAI has a very successful product in ChatGPT. As far as whether or not that will actually ever make them enough money to become a sustainable business that’s not raising the largest private rounds in the world, ever, to keep things going, is a big question. And they also seem to be struggling to keep up on the enterprise side of things where the real money seems to be, so bringing in a team like this seems like taking a shot at, “What else can we do?” 

The guy who founded Hiro seems to have a serial entrepreneur streak of creating consumer apps, and so this seems to me like a bet on them being able to come up with something else that may have more hooks than just a chatbot, and maybe something worth paying more for.

And then TBPN is an acquisition made to help better represent what the company does and better shape its image in the public eye, which lately has not been great and certainly is under more questions now than just a few weeks ago, because Ronan Farrow just led a report at The New Yorker that dropped suspiciously right around the time that this and a couple other announcements from OpenAI came out last week. 

I think those are two big existential problems that OpenAI is trying to solve right now.

Kirsten: So the thing that you didn’t say is, there’s Anthropic kind of looming in — not in the shadows, I mean, they’re very much taking up a lot of space here — but they’re having a lot of success on the enterprise side of things.

It feels like these guys are competitors and they also feel like very different companies in a lot of ways. Anthony, I’m wondering if you see them as direct competition to OpenAI? Or [are they] just finding their stride in enterprise and in a way, these two companies are clearly going to coexist and they’re really not directly competing with each other — maybe on talent, but not necessarily as we initially thought of them?

Anthony: I think they’re directly competing with each other. There’s definitely a scenario where if AI as an industry, as a technology, is as successful as its proponents hope for, they could both be very successful companies, they could just be the one and two. And the success of one does not necessarily mean that the other will just fade into obscurity. 

And again, none of this is official, but there’s just been a lot of reporting around how it seems like OpenAI, more than anyone, is obsessed with and upset about Anthropic’s rise. 

Our reporter Lucas [Ropek], he did a great piece over the weekend about the HumanX conference, where he was talking to everyone there and they’re sort of like, “Yeah, ChatGPT is fine, too,” but like they were all about Claude Code. And I think that is exactly what OpenAI is worried about.

Because again, in theory, there could be many other opportunities for generative AI, but it feels like the big growth area, the area where the most money is and where they could at least see a path to having a sustainable business in the future, is in these enterprise and coding tools.

#OpenAIs #existential #questions #TechCrunchAnthropic,Equity podcast,OpenAI

Post Comment