11 April 2024

OpenAI and Microsoft plan $100 billion data centre in the US

According to The Information, OpenAI and Microsoft are planning a massive $100 billion data centre project in the US, which will include an artificial intelligence supercomputer called "Stargate" to be launched in 2028.

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This initiative involves a five-phase strategy, with Stargate expected to be in Phase 5. According to the report, funding would likely come from Microsoft, which has already invested more than $13 billion in OpenAI. Currently, OpenAI uses Microsoft's data centers to power its AI generation system ChatGPT under an agreement in which Microsoft has exclusive rights to resell OpenAI's technology to its clients.

Stargate could potentially be hundreds of times more expensive than current data centres, primarily due to the need for AI chips and power sources to power it. The rapid adoption of generative AI technology is leading to skyrocketing demand for AI data centres that are capable of handling more advanced tasks than traditional data centres.