Microsoft (NASDAQ:MSFT) and OpenAI are reportedly joining forces on a groundbreaking $100 billion data center project, with plans to develop an AI supercomputer named “Stargate” by 2028.
As reported by The Information, this massive undertaking forms part of a broader collaboration between the two tech giants, aimed at driving innovation in AI, semiconductors, and other cutting-edge technologies.
If successful, Stargate will lead a series of supercomputers developed by M’soft and OpenAI over the next six years, marking a significant milestone in their ongoing partnership.
This ambitious project, estimated to cost up to $100 billion, comes at a pivotal moment, as the rise of generative artificial intelligence technology fuels an unprecedented demand for advanced AI data centers.
The Need for AI-based Solutions
As more industries embrace AI-driven solutions, the need for infrastructure capable of supporting increasingly sophisticated applications has never been greater.
The Stargate supercomputer, along with a series of other cutting-edge data centers planned by Microsoft and OpenAI, is set to play an important role in meeting part of this demand over the next six years and beyond.
According to the publication, Microsoft is expected to shoulder the majority of the funding for this ambitious endeavor, a move anticipated to dwarf the costs associated with current data center operations by a substantial margin.
Microsoft Pushing AI Boundaries
As the driving force behind this project, Microsoft’s investment demonstrates its commitment to pushing the boundaries of AI technology and maintaining a competitive edge in the rapidly evolving tech landscape.
The planned supercomputer, slated to be located in the US, is expected to be the flagship installment in a series of cutting-edge data center projects scheduled over the next six years. As the report notes, this bold initiative has the potential to redefine the future of AI.
It should be noted that Altman and Microsoft have laid out a five-phase roadmap for the project, with Stargate identified as the ultimate milestone in the fifth phase. Prior to this, Microsoft has been actively working on a smaller-scale supercomputer expected to debut around 2026.
Also, a significant portion of the anticipated costs for the upcoming phases will be allocated to acquiring specialized AI chips, a critical element for enabling advanced AI functionalities. According to Nvidia CEO Jensen Huang, these chips could carry price tags ranging from $30,000 to $40,000.
The ambitious Stargate supercomputer collaboration between Microsoft and OpenAI is expected to incur substantial expenditures, with projected costs potentially surpassing a staggering $115 billion, according to The Information’s report.
This figure signifies quite a surge compared to Microsoft’s infrastructure capital spending in the prior fiscal year, underscoring the scale and significance of this game-changing AI endeavor.
h/t: mint
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