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OpenAI is stepping back from NDAs for data center projects

AI1 min read

OpenAI says it will stop using non-disclosure agreements (NDAs, secret-keeping contracts) with public officials on its data center projects. It also made new promises to the towns where it builds.

What happened

OpenAI announced new commitments to communities near its data center projects. The biggest change is that it will not use NDAs with public officials. It will only keep narrow secrets, such as real security details, trade secrets, and sensitive business information. It also promised to pay the full cost of the electricity it uses and the equipment needed to power its sites.

Key facts

  • OpenAI will pay "the full cost" of the electricity it uses.
  • It will pay for the "infrastructure needed to serve us."
  • It will publish the jobs it expects to create and report on hiring.
  • Every future "compute campus" it owns will have a "local compact" that reflects local priorities.
  • In October, Amazon also said it would stop using NDAs with government agencies on data center projects.

Why NDAs matter here

Many data center projects have faced criticism for using NDAs to hide talks between companies and local officials. People who live nearby often do not know what is being planned. A data center is a huge building full of computers that run AI and internet services. It uses a lot of power and water, so local people care a lot about it.

Why it matters

This news comes after voters in this week's midterm elections strongly opposed data center growth. Companies now face pressure to be open with towns and to share the costs and benefits. Other tech firms may follow OpenAI and Amazon in dropping secret deals.

What to watch

  • Whether other AI and cloud companies also stop using NDAs with officials.
  • How the local compacts work in real towns and whether residents feel heard.
  • Whether OpenAI publishes the job numbers and hiring reports it promised.
  • How local voters and leaders respond to new data center projects.

Glossary

OpenAI
A company that builds AI tools, including ChatGPT.
Amazon
A large company that sells online and runs cloud computing services.

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