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Home Technology Microsoft, OpenAI Plan $100 Billion Data Centre With AI Supercomputer

Microsoft, OpenAI Plan $100 Billion Data Centre With AI Supercomputer

Microsoft and OpenAI are engaged on plans for an information heart challenge that might price as a lot as $100 billion and embrace a synthetic intelligence supercomputer known as “Stargate” set to launch in 2028, The Data reported on Friday.

OpenAI didn’t instantly reply to Reuters’ requests for remark.

Fast adoption of generative synthetic intelligence know-how has led to sky-rocketing demand for AI knowledge facilities able to dealing with extra superior duties than conventional knowledge facilities.

The Data reported that Microsoft would probably finance the challenge, which is anticipated to be 100 instances extra pricey than a few of the largest current knowledge facilities, citing individuals concerned in non-public conversations concerning the proposal.

The proposed U.S.-based supercomputer can be the largest in a sequence the businesses wish to construct over the following six years, the report added.

The Data attributed the tentative price of $100 billion to an individual who spoke to Altman about it and an individual who has considered a few of Microsoft’s preliminary price estimates. It didn’t determine these sources.

Altman and Microsoft have unfold the supercomputers throughout 5 phases, with Stargate because the fifth part. Microsoft is engaged on a smaller, fourth-phase supercomputer for OpenAI to be launched round 2026, in keeping with the report.

Microsoft and OpenAI are in the midst of the third part of the five-phase plan, with a good portion of the price for the following two phases involving buying the wanted AI chips, the report stated.

AI chips are sometimes offered at excessive costs. Chip firm Nvidia CEO Jensen Huang instructed CNBC earlier in March that the most recent “Blackwell” B200 synthetic intelligence chip will likely be priced between $30,000 and $40,000.

Microsoft had additionally introduced a duo of custom-designed computing chips in November final yr.

The report stated the brand new challenge can be designed to work with chips from totally different suppliers.

“We’re at all times planning for the following era of infrastructure improvements wanted to proceed pushing the frontier of AI functionality,” a Microsoft spokesperson stated in an emailed assertion to Reuters. The spokesperson didn’t remark straight on the report concerning the deliberate launch of the Stargate supercomputer.

Bills for the plan may exceed $115 billion, greater than triple Microsoft’s expenditure final yr on capital spending for servers, buildings and different tools, the report acknowledged.

© Thomson Reuters 2024

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