Microsoft, OpenAI Plan $100 Billion Knowledge Centre With ‘Stargate’ AI Supercomputer: Report

Microsoft and OpenAI are engaged on plans for a knowledge heart venture that would value as a lot as $100 billion and embrace a man-made intelligence supercomputer referred to as “Stargate” set to launch in 2028, The Data reported on Friday.

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

Speedy 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 doubtless finance the venture, which is anticipated to be 100 occasions extra expensive than a number of the largest current knowledge facilities, citing folks concerned in non-public conversations concerning the proposal.

The proposed U.S.-based supercomputer can be the most important in a collection the businesses wish to construct over the subsequent six years, the report added.

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

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

Microsoft and OpenAI are in the course of the third section of the five-phase plan, with a good portion of the associated fee for the subsequent two phases involving buying the wanted AI chips, the report stated.

AI chips are sometimes bought at excessive costs. Chip firm Nvidia CEO Jensen Huang advised CNBC earlier in March that the most recent “Blackwell” B200 synthetic intelligence chip will probably 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 venture can be designed to work with chips from totally different suppliers.

“We’re all the time planning for the subsequent technology 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 might exceed $115 billion, greater than triple Microsoft’s expenditure final yr on capital spending for servers, buildings and different tools, the report said.

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