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OpenAI in Talks with Microsoft for $100 Billion Supercomputer

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OpenAI is reportedly discussing with Microsoft the construction of a massive supercomputer called Stargate, equipped with millions of AI accelerators. The project, estimated to cost up to $100 billion, is being considered for financing by Microsoft and is expected to be ready by 2028. The supercomputer's machine-learning accelerators, which can be quite expensive, are crucial for Microsoft's AI products that rely on OpenAI's models. Microsoft's partnership with OpenAI includes significant investments in infrastructure to maintain its position as the exclusive cloud provider for OpenAI.

OpenAI is believed to be in talks with Microsoft to construct a massive supercomputer code-named Stargate containing millions of AI accelerators at a cost of up to $100 billion. Microsoft is deciding whether to finance the project, which might cost as much as 100 times that of setting up a modern datacenter and be ready by 2028.

We imagine a lot of Redmond's dosh will be blown on the super's machine-learning accelerators which can cost tens of thousands of dollars apiece, depending on the supplier. Microsoft has staked the future of its AI products on OpenAI's models, for which it furnishes the GPU clusters necessary to train and run that software. In January last year, Microsoft announced the third-phase of its partnership with the AI juggernaut, which included investing billions of dollars into infrastructure to maintain its status as OpenAI's exclusive cloud provide

 

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