Wednesday, October 2, 2024

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

(Reuters) -Microsoft and OpenAI are planning a data-center venture that would price as a lot as $100 billion and can embrace a synthetic intelligence supercomputer referred to as “Stargate,” in response to a media report on Friday.

The businesses didn’t instantly reply to Reuters’ requests for remark.

The Data reported that Microsoft (NASDAQ:) would doubtless be chargeable for financing the venture, which might be 100 occasions extra pricey than a few of the greatest present information facilities, citing individuals concerned in non-public conversations in regards to the proposal.

OpenAI’s subsequent main AI improve is anticipated to land by early subsequent yr, the report stated, including that Microsoft executives wish to launch Stargate as quickly as 2028.

The proposed U.S.-based supercomputer could be the most important in a sequence of installations the businesses wish to construct over the subsequent six years, the report added.

The Data attributed the tentative price of $100 billion to an individual who spoke to OpenAI CEO Sam Altman about it and an individual who has seen a few of Microsoft’s preliminary price estimates. It didn’t establish these sources.

Altman and Microsoft staff have unfold supercomputers throughout 5 phases, with Stargate because the fifth section. Microsoft is engaged on a smaller, fourth-phase supercomputer for OpenAI that it goals to launch round 2026, in response to the report.

Microsoft and OpenAI are in the course of the third section of the five-phase plan, with a lot of the price of the subsequent two phases involving procuring the AI chips which are wanted, the report stated.

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

“We’re at all times planning for the subsequent technology of infrastructure improvements wanted to proceed pushing the frontier of AI functionality,” Frank Shaw, a Microsoft spokesperson, stated in an announcement to the publication.

The proposed efforts might price in extra of $115 billion, greater than 3 times what Microsoft spent final yr on capital expenditures for servers, buildings and different tools, the report acknowledged.


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