Sam Altman, CEO of OpenAI, alongside venture capital firm Andreessen Horowitz, has invested $20 million in Exowatt, a startup focusing on sustainable energy solutions for data centers.
As reported by The Wall Street Journal, the investment reflects the increasing concern within the AI industry about its substantial electricity consumption and the ongoing challenges related to ensuring a clean energy supply. Data centers, crucial for AI computations, are notorious for their high energy usage, which is often compared to the consumption of hundreds of thousands of homes.
Exowatt has developed a unique solution using solar lenses housed in modules the size of shipping containers to convert sunlight into heat, which can be stored and converted back to electricity. This technology promises to provide a continuous power supply even in regions where traditional renewable energy technologies fall short. The company’s approach, focusing on heat storage and conversion, aims to significantly reduce costs and increase the efficiency of power generation for data centers.
The firm plans to deploy its first units for data-center clients later this year, emphasizing the use of U.S.-made components to qualify for subsidies under the 2022 climate law and to reduce dependency on foreign supply chains. This strategic move could enable Exowatt to offer power at costs as low as 1 cent per kilowatt-hour without subsidies, positioning it competitively in the energy market.
The involvement of significant industry players like Altman highlights the tech sector’s active role in addressing its energy challenges and advancing sustainable solutions.
