As per a media source, Microsoft and OpenAI are planning a $100 billion data center project

As per a media source, Microsoft and OpenAI are planning a $100 billion data center project
As per a media source, Microsoft and OpenAI are planning a $100 billion data center project

According to a Friday story from The Information, Microsoft (MSFT.O) and OpenAI are developing plans for a data center project that might cost up to $100 billion and feature the artificial intelligence supercomputer “Stargate,” which is scheduled to launch in 2028.

Requests for response from Reuters were not immediately answered by OpenAI.

The need for AI data centers—which can do more complex jobs than standard data centers—has skyrocketed because to the rapid adoption of generative AI technology.

The Information, citing persons involved in private negotiations about the idea, stated that Microsoft would probably finance the project, which is projected to be 100 times more expensive than some of the biggest existing data centers.

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According to the report, the corporations plan to develop a series of supercomputers over the following six years, the largest of which would be the U.S.-based model.

The Information cited two sources for the estimated $100 billion cost: one who discussed it with Altman and the other who seen some of Microsoft’s first cost projections. It failed to cite their sources.

The supercomputers have been divided into five phases by Altman and Microsoft, with Stargate representing the fifth phase. According to the report, Microsoft is developing a fourth-phase supercomputer that will be smaller and intended for release in 2026 for OpenAI.

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According to the article, Microsoft and OpenAI are currently in the middle of the third phase of their five-phase plan. A large amount of the expenses for the next two phases will go into purchasing the necessary AI processors.

AI chips are frequently priced highly. Chipmaker Nvidia (NVDA.O) launches a new tab Early in March, CEO Jensen Huang told CNBC that the cost of the most recent “Blackwell” B200 artificial intelligence processor will range from $30,000 to $40,000.

A pair of specially created CPU chips were also announced by Microsoft in November of last year.
According to the article, the new project will be made to function with chips from several vendors.

In an email to Reuters, a Microsoft representative stated, “We are always planning for the next generation of infrastructure innovations needed to continue pushing the frontier of AI capability.” Regarding the report concerning the scheduled launch of the Stargate supercomputer, the spokesperson refrained from making any immediate comments.

According to the source, the plan’s costs might surpass $115 billion, which would be more than three times what Microsoft spent on capital expenditures on servers, buildings, and other equipment last year.

Arsheeya Bajwa reported from Bengaluru, and Paul Simao and David Gregorio edited the piece.


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