Microsoft And OpenAI In Plans To Build $100 Billion Data Center And AI Supercomputer!

There is no looking back when it comes to artificial intelligence (AI) and its magnificent abilities that have begun reshaping and revolutionizing industries and processes all over the world.

This has seen a burst of collaborations, tie-ups and partnerships blossoming, as tech conglomerates and businesses across other industries look to infuse the latest and most powerful capabilities of this technology.

One such notable partnership includes one that was made right at the beginning of the paradigm shift – Microsoft and OpenAI.

Over time, the partnership between the maker of the world’s most popular operating system (Windows) and the maker of the world’s most popular generative artificial intelligence (GenAI) chatbot (ChatGPT), has seen over $13 billion in funding being poured into the latter by the former.

Additionally, perks of the partnership included Microsoft getting access and availability to integrate ChatGPT across its products and services. On the flip side, OpenAI leverages Microsoft’s capable data center infrastructure to power its AI systems.

Suffice it to say, Microsoft has a major advantage in the field of AI with this partnership and as per the latest reports, it’s believed that the company is set to receive another major boost that could once again reshape the industry.

So, what are Microsoft and OpenAI doing now? Let’s explore!

What’s New With The Microsoft And OpenAI Partnership?

As per reports, executives at Microsoft and OpenAI are planning to build and launch a data center project that would include an AI supercomputer.
The supercomputer would consist of millions of specialized chips that would be used to power OpenAI’s AI efforts.
The project's tentative cost is estimated to be over $100 billion, which is reported to be borne by Microsoft.
Citing people involved in private conversations, the report finds that the cost is expected to be over 100 times higher than some of the biggest existing data centers.
The project is believed to have a range of supercomputers spread across five phases which will be built over the next six years.
The fifth phase includes the biggest supercomputer in the series, which is called “Stargate”. This supercomputer will be US-based and is set to be launched in 2028.
While Microsoft and OpenAI are in the middle of the third phase, Microsoft is also working toward a smaller fourth-phase supercomputer, believed to be launched around 2026.
As per the report, a significant portion of the cost for the next two phases includes acquiring AI chips, which can be costly.
Recently, Jensen Huang, the CEO of NVIDIA, revealed the company’s latest and most powerful AI chip, the Blackwell B200 AI chip, which will be priced between $30,000 and $40,000.
On the other hand, Microsoft also announced custom-designed chips previously.
However, the report mentioned that the project would be designed to work with chips from different manufacturers.
As per the report, the location of the supercomputers is yet to be determined, as well as whether they would be built in a single data center or multiple ones in close proximity to one another.
OpenAI didn’t comment on the report, while a spokesperson for Microsoft replied via e-mail saying, “We are always planning for the next generation of infrastructure innovations needed to continue pushing the frontier of AI capability.”
At the same time, the Microsoft spokesperson didn’t comment directly on the report.

Source

As the growing adoption of GenAI technology has boomed, so has the demand for capable and dedicated AI data centers that can handle advanced tasks to program and design AI platforms and tools.

Do you think Microsoft and OpenAI’s endeavor, if true, could help the duo capture a stronger market share?

Let us know in the comments below!

First published on Mon, Apr 1, 2024

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