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HomeBusinessAre Microsoft and OpenAI building AI Supercomputer? CWEB Upgrades the Stock. $100...

Are Microsoft and OpenAI building AI Supercomputer? CWEB Upgrades the Stock. $100 billion Stargate in the works, report says

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Microsoft and OpenAI executives are reportedly planning to build a data center that would have a supercomputer, according to a popular outlet. The specialized computer will have millions of chips to power OpenAI’s artificial intelligence. The project is estimated to cost $100 billion and the Redmond Washington tech giant is expected to finance the project.

In an exclusive report, The Information spoke to three people involved in the project. One person, who spoke to OpenAI CEO Sam Altman about the project, estimated the 100 billion cost, while another reportedly looked at initial cost estimates from Microsoft.

The outlet also said that the project Stargate is expected to be the biggest ever as its goal is to build computing capacity for AI in the future. It will cost more than 100 times the cost of current data centers. It will take six years to make a serious network of installations for the supercomputer to be set up.

OpenAI already uses Microsoft infrastructure to train its AI models. In 2020, the tech giant built a supercomputer with 10,000 graphic cards on Azure, and it was one of the top five supercomputers when it was launched.

Microsoft has been upgrading its infrastructure installations for the past years. However, this reportedly new development indicates that there are many further upgrades. Stargate, as the new project has been termed with its millions of chips, is expected to be launched in 2028.

Microsoft has been using NVIDIA chips, but this could change in the future. It is developing its own AI accelerator, Maia, which features 105 billion transistors and is specifically designed for Microsoft’s Azure hardware stack.

The Information also reported that the location of Stargate is not yet known. It said that there could be one data center or a cluster of centers situated near each other. OpenAI may not be the exclusive user of the supercomputer Stargate.

The new approach to sales has also been well received by analysts, including those from CWEB, who now predict a further increase in the stock prices of Microsoft and Google.

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