Microsoft and OpenAI to build $100 bln data centre: report
Microsoft and OpenAI are reportedly planning on building a data centre that would cost as much as $100 billion, as per a report by the global news platform The Information. The report adds that this data centre could also include an AI supercomputer called 'Stargate', which is set to launch in 2028.
The rapid adoption of generative artificial intelligence technology has led to a sky-rocketing demand for AI data centres capable of handling more advanced tasks than traditional data centres.
For all latest news, follow The Daily Star's Google News channel. The Information reported that Microsoft would likely finance the project, which is expected to be 100 times more costly than some of the biggest existing data centres, citing people involved in private conversations about the proposal.
The proposed U.S.-based supercomputer would be the biggest in a series the companies are looking to build over the next six years, the report added.
The Information attributed the tentative cost of $100 billion to a person who spoke to Altman about it and a person who has viewed some of Microsoft's initial cost estimates. It did not identify those sources.
Altman and Microsoft have spread the supercomputers across five phases, with Stargate as the fifth phase. Microsoft is working on a smaller, fourth-phase supercomputer for OpenAI to be launched around 2026, according to the report.
Microsoft and OpenAI are in the middle of the third phase of the five-phase plan, with a significant portion of the cost for the next two phases involving acquiring the needed AI chips, the report said.
AI chips are often sold at high prices. Chip company Nvidia CEO Jensen Huang told CNBC earlier in March that the latest 'Blackwell' B200 artificial intelligence chip will be priced between $30,000 and $40,000.
Microsoft had also announced a duo of custom-designed computing chips in November last year. The report said the new project would be designed to work with chips from different suppliers.
OpenAI did not immediately respond to Reuters' requests for comment.
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