Microsoft, OpenAI reportedly collaborating on $100 billion data centre project

Microsoft, OpenAI data centre project: Microsoft and OpenAI are said to be jointly working on a massive data centre project with an estimated cost of up to $100 billion, according to a report by The Information. Central to this ambitious initiative is the development of an artificial intelligence (AI) supercomputer dubbed "Stargate," anticipated to be operational by 2028.

OpenAI has not yet responded to Reuters' inquiries regarding this development. 

The surge in demand for AI data centres, driven by the rapid adoption of generative artificial intelligence technology, underscores the necessity for facilities capable of handling increasingly complex tasks.

The financing of the project is expected to be primarily undertaken by Microsoft, and it is projected to be substantially more expensive compared to existing data centre infrastructures. 

The proposed supercomputer, to be located in the United States, is intended to be the flagship installation in a series of supercomputers planned for construction over the next six years.

Meanwhile, the estimated cost of $100 billion was attributed to sources familiar with discussions regarding the proposal, though the identities of these sources were not disclosed. 

The project is divided into five phases, with "Stargate" constituting the final phase, slated for launch in 2028. 

A smaller supercomputer, designated for OpenAI and planned for release around 2026, is also part of Microsoft's roadmap.

A notable portion of the anticipated expenditure for the project involves acquiring AI chips, which are known to carry hefty price tags. 

The planned data centre project is purportedly designed to accommodate chips from various suppliers, enhancing flexibility and scalability.

In response to inquiries, a Microsoft spokesperson conveyed the company's commitment to ongoing infrastructure innovations aimed at advancing AI capabilities. 

However, no direct confirmation was provided regarding the reported launch of the Stargate supercomputer.

The expenses associated with this endeavour could surpass $115 billion, exceeding Microsoft's capital spending on servers, buildings, and related equipment for the previous year by more than triple the amount, as stated in the report.

(With Reuters Inputs)