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Data Center News > Blog > Investments > Microsoft, OpenAI plan $100 billion data-center project, media report says By Reuters
Investments

Microsoft, OpenAI plan $100 billion data-center project, media report says By Reuters

Last updated: March 30, 2024 9:11 am
Published March 30, 2024
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Microsoft, OpenAI plan $100 billion data-center project, media report says By Reuters
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(Reuters) -Microsoft and OpenAI are engaged on plans for a knowledge middle mission that would value as a lot as $100 billion and embrace a synthetic intelligence supercomputer known as “Stargate” set to launch in 2028, The Info 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 information facilities able to dealing with extra superior duties than conventional information facilities.

The Info reported that Microsoft (NASDAQ:) would seemingly finance the mission, which is predicted to be 100 instances extra expensive than among the greatest current information facilities, citing folks concerned in non-public conversations in regards to the proposal.

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

The Info 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 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 accordance with the report.

Microsoft and OpenAI are in the course of the third part of the five-phase plan, with a good portion of the 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 (NASDAQ:) CEO Jensen Huang informed CNBC earlier in March that the newest “Blackwell” B200 synthetic intelligence chip will probably be priced between $30,000 and $40,000.

See also  Scala Data Centers Celebrates R$ 1 Billion Investment in Northeast Brazil

Microsoft had additionally introduced a duo of custom-designed computing chips in November final 12 months.

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

© Reuters. FILE PHOTO: OpenAI logo is seen in this illustration taken, March 11, 2024. REUTERS/Dado Ruvic/Illustration/File Photo

“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 instantly on the report in regards to the deliberate launch of the Stargate supercomputer.

Bills for the plan might exceed $115 billion, greater than triple Microsoft’s expenditure final 12 months on capital spending for servers, buildings and different tools, the report said.

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TAGGED: billion, Datacenter, Media, Microsoft, OpenAI, Plan, Project, report, Reuters
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