From TechSpot: 2024-03-30 10:03:00

Microsoft and OpenAI are planning a $100 billion project to build a massive US-based data center codenamed “Stargate” with cutting-edge AI chips. The facility is part of their partnership to develop five AI installations by 2028. Potential chip suppliers include Nvidia and AMD, with Microsoft considering self-supplying hardware needs.

Their partnership, dating back to 2019, has already resulted in multiple large AI supercomputer systems. Microsoft recently approved a $1 billion data center expansion in Wisconsin, with plans for a $10 billion system in 2026. OpenAI’s next AI model upgrade is set for early 2025 release.

The potential $115 billion price tag for all future AI projects by Microsoft and OpenAI exceeds Microsoft’s current $50 billion annual spending on Azure data centers. The expanding ties between the two companies and increasing AI ambitions have drawn regulatory scrutiny over competition concerns in the US, UK, and Europe.

The scale of the Stargate facility, if realized, reflects an industry-wide arms race mentality driving massive investments in AI technology that could shape the global economy.



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