Microsoft And OpenAI plan $100B AI data center

Microsoft and OpenAI are collaborating, investing over $100 billion to construct a cutting-edge data center and supercomputer, aiming to further elevate their artificial intelligence capabilities.

Marked as the most expensive data center endeavor globally, this joint initiative between Microsoft and OpenAI is propelling AI advancements with the development of a state-of-the-art supercomputer facility. Initially reported by The Information, the objective is to establish a comprehensive data center campus through five phases, facilitating the deployment of the most advanced AI technologies and models for the future. At the heart of this endeavor is the creation of an exceptional AI supercomputer, named Stargate, slated for operational readiness by 2028. 

“We are always planning for the next generation of infrastructure innovations needed to continue pushing the frontier of AI capability,” a Microsoft spokesperson said in a statement.

The AI-focused data center is poised to tackle significantly more sophisticated computing tasks than conventional hyperscale data centers. It is projected to accommodate millions of specialized server chips, amplifying OpenAI’s artificial intelligence functionalities.

Both the data center initiative and the Stargate supercomputer are being tailored to seamlessly integrate with chipsets sourced from various microprocessor suppliers. This includes offerings from AMD, alongside Microsoft’s proprietary in-house server chips, as outlined in the report.

“We’ve moved from talking about AI to applying AI at scale,” said Microsoft Chairman and CEO Satya Nadella during his company’s second-quarter Fiscal Year 2024 earnings report earlier this year. “By infusing AI across every layer of our tech stack, we’re winning new customers and helping drive new benefits and productivity gains across every sector.”

Reportedly, Microsoft is exploring alternative energy sources, such as nuclear power, to fuel its supercomputing capabilities.

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