Sam Altman Discusses AI and Deflation at Morgan Stanley Tech Conference

Sam Altman, the CEO of OpenAI, recently made an appearance at Morgan Stanley's tech conference in San Francisco. The event, which was closed to the public and the media, left many curious about the discussions that took place. Fortunately, Morgan Stanley analysts have provided a summary of the key points discussed at the conference.

AI Impact on Deflation

One of the main topics of discussion was the potential deflationary impact of AI technology. Altman emphasized that this aspect of AI is often underestimated and misunderstood by investors. According to Morgan Stanley analysts, the efficiency and productivity improvements brought about by AI could help counteract inflation. The accessibility of generative AI models has increased due to new techniques, leading to lower costs. This is good news for developers and businesses seeking to leverage AI models at a more affordable price.

GPU Capacity Constraints

OpenAI raised concerns about significant capacity constraints, stating that its fleet of graphic processing units (GPUs) is currently at full capacity. This constraint is observed in both the training and inference stages of AI model development. Despite the high demand for GPUs, OpenAI has never had trouble selling out access to its GPUs at reasonable margins. This aligns with the need for substantial computing power to train large language models, according to Morgan Stanley analysts.

Training Data Availability

Unlike GPU constraints, OpenAI is not worried about the availability of training data for its models. The company highlighted its ability to generate synthetic data using GPUs and existing AI models, easing the data constraint in model training. Synthetic data is increasingly valuable in certain stages of model development. OpenAI's focus on compute rather than data availability reflects its strategic approach to AI model training.

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By: abarr@businessinsider.com (Alistair Barr)
Title: Sam Altman Discusses AI and Deflation at Morgan Stanley Tech Conference
Sourced From: www.businessinsider.com/sam-altman-openai-ai-gpu-private-conference-morgan-stanley-2025-3
Published Date: Tue, 11 Mar 2025 04:55:52 +0000