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Data Center News > Blog > Investments > OpenAI and Microsoft Plan $100 Billion ‘Stargate’ Data Center in the U.S.
Investments

OpenAI and Microsoft Plan $100 Billion ‘Stargate’ Data Center in the U.S.

Last updated: April 8, 2024 10:56 pm
Published April 8, 2024
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OpenAI and Microsoft Plan $100 Billion ‘Stargate’ Data Center in the U.S.
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The surge in demand for GenAI has created a urgent want for AI-powered information facilities which have the capabilities to deal with advanced AI fashions and course of giant information volumes. Information facilities should be capable of scale seamlessly to accommodate rising workloads. 

In response to a report by The Information, Microsoft and OpenAI are discussing a mission known as “Stargate” that might see Microsoft spend as a lot as $100 billion to construct a supercomputer information middle to assist OpenAI’s superior AI fashions. The mission is ready to be primarily based within the U.S. and will launch as quickly as 2028. 

“Microsoft has demonstrated its capacity to construct pioneering AI infrastructure used to coach and deploy the world’s main AI fashions. We’re all the time planning for the following era of infrastructure improvements wanted to proceed pushing the frontier of AI functionality,” Microsoft spokesperson Frank Shaw mentioned in an announcement to The Info.

Microsoft and OpenAI are reportedly planning to construct a number of supercomputers all through the U.S. in 5 phases. Stargate is a part of the fifth and last part of the mission. Microsoft and OpenAI are at present believed to be in the course of the third part. A good portion of the price of the following two phases will go to buying AI chips. 

Since March 2023, Microsoft has been utilizing Nvidia chips to energy OpenAI. There have been stories of Microsoft introducing its own customized AI chips. The Azure Maia 100 and Cobalt 100 chips are the primary two customized silicon chips designed by Microsoft for its cloud infrastructure. It will be attention-grabbing to see what chips are used for Stargate.  

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The mission is anticipated to be the biggest within the collection of supercomputing information facilities the 2 tech corporations hope to construct. It’s anticipated to be constructed on a whole lot of acres of land and with over 5 gigawatts of energy and hundreds of thousands of processors geared towards AI workloads. 

The $100 billion price ticket dwarfs even the biggest information facilities across the globe. Simply to offer some context to the staggering determine, the projected quantity is triple what Microsoft spent final 12 months in whole on buildings, servers, and tools. The mission is anticipated to have extraordinarily excessive energy wants, and which will immediate Microsoft and OpenAI to discover various power sources. 

OpenAI already makes use of Microsoft infrastructure to coach its AI fashions. Each corporations share a detailed partnership.  Microsoft’s assist for OpenAI started in 2019 with a $1 billion funding. So far, Microsoft has invested over $13 billion in OpenAI. 

In 2020, Microsoft revealed it had constructed an Azure-hosted supercomputer to assist OpenAI. Extra lately, Microsoft upgraded its infrastructure for OpenAI to incorporate tens of hundreds of A100 chips. 

It’s value noting that because the Stargate mission is anticipated to be accomplished by 2028, there might be a number of adjustments alongside the best way. All the mission might rely on OpenAI’s capacity to ship a considerably superior GPT-5 that requires superior computing energy. Is reported that OpenAI has already created a working prototype of GPT-5 that’s “materially better” than the present GPT-4.  

Associated Gadgets 

Microsoft Solidifies Multi-year, Multi-billion Funding in OpenAI 

See also  IBM thinks that over a billion new applications will be built with gen AI : Here's how they're going to help that happen with agentic AI

Inside Microsoft’s AI Bulletins at Ignite 

Microsoft Seeks $10B Funding in OpenAI: Report

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TAGGED: billion, Center, data, Microsoft, OpenAI, Plan, Stargate, U.S
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