The arrival of OpenAI's Sydney office has sparked mixed reactions among government staff, with some showing a more measured enthusiasm than others. Despite the New South Wales (NSW) Labor government's efforts to attract the AI giant, emails tabled in parliament reveal that initial excitement was toned down due to concerns about the potential implications of advanced AI.
OpenAI, known for its groundbreaking AI models, had announced its Australian office in August last year and officially opened it in December. However, internal debate within the office of NSW Technology Minister Anoulack Chanthivong led to a draft statement being edited from 'absolutely thrilled' to simply 'welcome'. One staffer even jokingly referred to a 'Skynet situation', echoing the Terminator films' theme of AI gone rogue.
The documents highlight the NSW government's enthusiasm for attracting OpenAI, with meetings between Minister Chanthivong and company representatives in June last year showcasing Sydney as a hub for startups. Talking points noted that 65% of Australia's venture capital is invested in this region, making it an attractive destination for major US tech firms like Google, Microsoft, Meta, and IBM. What's more, NSW hosts 45% of all AI businesses in the country.
The push for AI investment comes as scrutiny increases over datacentre environmental impact. With significant energy consumption and air pollution from diesel generators a growing concern, modelling by the NSW Environmental Protection Authority (EPA) suggests that if all eight large datacentres in the Sydney basin ran their backup generators simultaneously, it could lead to one-hour air pollution loads five to six times higher than electricity generation or motor vehicles in NSW.
A government spokesperson assured commitment to embracing AI responsibly. The state is developing a strategy for datacentre development – although no release date has been announced – and an ongoing inquiry continues to balance economic growth with environmental considerations.