Microsoft and OpenAI Plan to Invest $100 Billion in Building "Stargate" AI Supercomputer

2024-04-01

According to reports, Microsoft and OpenAI are secretly planning a $100 billion data center project, which will build an artificial intelligence supercomputer codenamed "Stargate" to drive OpenAI's ambitions in the field of general artificial intelligence. This will be a major leap forward in computing power and AI development capabilities. The proposed US supercomputer will require unprecedented amounts of electricity (up to 5 gigawatts by 2030), and management is discussing the possibility of using alternative energy sources such as nuclear power. Microsoft is expected to fund the project, which will cost 100 times more than some of the largest data centers today. However, the feasibility of Stargate depends on OpenAI's ability to make significant improvements to its AI models. The company's next-generation language model upgrade, expected to be launched this year, will be a key indicator to prove the rationale behind this massive investment. Microsoft's CFO, Amy Hood, recently hinted at the company's readiness to "significantly" increase spending on cloud and AI infrastructure, indicating its support for this ambitious project. If the project progresses smoothly, the computing power it will generate will be several orders of magnitude higher than what Microsoft currently provides to OpenAI. Currently, Microsoft and OpenAI are in the third stage of supercomputing development. The fourth stage before Stargate will cost less and involve smaller supercomputers, with Microsoft planning to launch around 2026. The two companies have discussed the possibility of launching Stargate as soon as 2028 and expanding it before 2030, which may require up to 5 gigawatts of electricity. However, for Stargate to become a reality, Microsoft must also overcome some technical challenges, such as preventing chip overheating due to higher GPU density. The total cost of the Stargate supercomputer may increase over time, depending on improvements in software and hardware to enhance data center efficiency. Key details, including the physical location of the supercomputer and whether it will be built in one data center or multiple data centers nearby, are still being finalized with partners. As the AI arms race heats up, competitors like Google are also vying for computing dominance. As the current leader in AI chip technology, NVIDIA will benefit from the surging demand. However, it is rumored that Altman plans to start a new chip company, which could disrupt the market, while products from Intel and AMD could further weaken NVIDIA's position. The Stargate project highlights the enormous resources and long-term thinking required to propel AI into new frontiers. Despite the uncertainties on the path to general artificial intelligence, Microsoft and OpenAI's bold vision underscores the transformative potential of AI and the efforts that tech giants are willing to make to stay at the forefront of this revolution.