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  • Voltaire Staff

Microsoft, OpenAI team up for $100 billion data centre, supercomputer

Microsoft and OpenAI have teamed up to set up a data centre potentially totalling $100 billion. At the heart of the venture lies "Stargate," an advanced artificial intelligence supercomputer slated for debut in 2028.

Microsoft is poised to finance the project, which could be a hundred times costlier than current leading data centres. The supercomputer, set to be based in the US, would be the largest among a series of such facilities the companies aim to construct within the next six years.

The estimated cost of the project is $100 billion according to a person who spoke to Sam Altman, CEO of OpenAI and another person who has viewed Microsoft’s initial cost estimate, according to Reuters which quoted the Information.

OpenAI and Microsoft have divided the development of the supercomputers into five phases, with Stargate being the fifth phase.

The report indicates that Microsoft is currently constructing a smaller, fourth-phase supercomputer for OpenAI, expected to be operational around 2026.

At present, they are progressing through the third phase of the plan. The report also claims that a substantial portion of the expenses for the subsequent phases, particularly the fourth and fifth, will be dedicated to acquiring the required AI chips.

The fast-growing use of generative artificial intelligence technology has sparked a surge in demand for AI data centres that can handle more advanced tasks than conventional ones.

A data centre also houses servers and networking equipment to provide access to computing resources, such as storage, databases, applications and software. On the other hand, a supercomputer is a powerful computer designed to process large amounts of data quickly.

A spokesperson from Microsoft told Reuters, "We are always planning for the next generation of infrastructure innovations needed to continue pushing the frontier of AI capability."

Microsoft had in November last year revealed two custom-designed computing chips.

The new project would be adaptable to chips from various suppliers.

According to the report, the expenses for this plan could even surpass $115 billion, which is more than triple Microsoft's spending last year on servers, buildings, and other equipment.





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