Cerebras CEO says AI 'as an industry' has done a terrible job of selling data centers: 'We ought to pay our own way

In a recent discussion on Harry Stebbing's "20VC" podcast, Andrew Feldman, the CEO of Cerebras, criticized the AI industry for its ineffective promotion of data centers. He believes that there is a better approach to communicating the benefits of these facilities to the public. Feldman, who recently celebrated the successful IPO of his company, emphasized the importance of AI firms being considerate neighbors when they establish large data centers. He drew inspiration from Microsoft President Brad Smith, who advocates for a model that promotes community benefits. "These can be clean, they can create jobs, and they can positively impact communities," Feldman remarked. He suggested that companies could contribute to local infrastructure, such as building sports fields or educational institutions, at minimal costs. Moreover, Feldman underscored the necessity for data centers to responsibly manage local resources. He criticized companies that shift financial burdens onto communities or utilize outdated financial strategies. "This is not acceptable, and it can be avoided," he stated. One innovative idea Feldman proposed is the development of closed-loop facilities that minimize water consumption. Alarmingly, a report indicated that 40% of the current and planned data centers in the U.S. are located in regions facing significant water shortages. He also referenced Smith's initiative, "Building Community-First AI Infrastructure," which outlines a five-step plan for responsible AI development. This includes ensuring that local residents are not adversely affected by rising electricity costs, reducing water usage, creating job opportunities, and collaborating with local organizations for workforce training. Amid growing concerns regarding job displacement due to AI advancements, a March poll revealed that 70% of Americans fear these technologies will lead to fewer job opportunities. Feldman joined others in the industry, like OpenAI's CEO Sam Altman, in expressing dissatisfaction with companies that blame AI for recent layoffs, a phenomenon he describes as "AI washing." "Most layoffs are due to poor hiring during the pandemic, not because of AI," he explained, indicating that productivity gains are now being realized. Ultimately, Feldman believes that companies must adapt to the productivity enhancements brought about by AI technologies. Cerebras is looking to expand its team of engineers rather than reduce it, asserting that organizations unable to leverage the productivity of skilled engineers may struggle to survive. "We have a significant list of projects that require far more engineers than we currently have," he concluded.