Microsoft and Open-AI to Team Up for a $100 Billion AI Supercomputer Project

April 9, 2024
Microsoft and Open-AI
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Microsoft and Open-AI

Microsoft and Open-AI have put their heads together to develop an artificial intelligence supercomputer, according to a report by The Information. The massive project is guesstimated to cost a staggering $100 billion.

The supercomputer, named “Stargate”, is the largest in the series of supercomputers Microsoft and OpenAI intend to build over the next six years. As of right now, the supercomputer plan is in its third phase, with Stargate falling into the fifth and final phase. It is predicted that Stargate, which may occupy several hundred acres of land, will become one of the world’s most advanced data centers. Reports claim that the site’s plans call for five gigawatts of electricity.

With a potential launch as early as 2028, this ambitious project is considered essential for OpenAI’s efforts to train and deploy advanced AI models that surpass the capabilities of ChatGPT-4.

However, it should be noted that the deployment of Stargate is largely dependent on OpenAI’s capacity to deliver its next AI upgrade, allegedly GPT-5, which is scheduled for release in early 2025. Microsoft is committed to making sure OpenAI keeps developing cutting-edge AI models that garner attention from all around the world.

Since the news of this project broke out, concerns regarding OpenAI’s innovation trajectory have surfaced. The company’s alleged inability to complete the “Arrakis” AI project by 2023 is one of them. 

Another roadblock in the advancement of this project is the shortage of graphics processing units, or GPUs, which are essential for processing large amounts of data for AI models. The demand for these chips increased dramatically due to the boom in generative AI. Nvidia, known for making some of the best AI chips, virtually controls the market. But currently, the company is having trouble fulfilling orders due to the rising demand. The cost of its AI chips has also soared, with the latest chip costing around $30.000 to $40,000.

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