OpenAI and Microsoft’s $100 Billion Investment in Supercomputing

  • Editor
  • April 15, 2024

In a landmark development for artificial intelligence, OpenAI and Microsoft are reportedly planning to invest a staggering $100 billion in a supercomputing project. This investment includes the creation of a supercomputer, dubbed “Stargate”, aiming to significantly advance AI capabilities by 2028.

Since their initial partnership, which began with Microsoft’s $1 billion investment into OpenAI in 2019, the two giants have worked together to overcome the immense processing power required for advanced AI systems. This collaboration has already resulted in the development of a specialized supercomputer located in Microsoft’s data centers in Iowa.

People also think that it could the most expensive datacenter on the planet yet.

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According to some OpenAI is doing this to avoid its dependence on Nvidia.

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According to Katie Mayer, who manages the Microsoft partnership for OpenAI, these supercomputing systems are crucial for the research being conducted.

To develop novel AI capabilities on this scale, such powerful systems are essential. They’ve accelerated our progress significantly.

Mayer noted in September 2023.

The proposed project, Stargate, is expected to launch in 2028 and may require up to 5 gigawatts of power, which is more than the capacity of the largest nuclear power station in the U.S., Palo Verde in Arizona. Details about Stargate, such as its exact location, the types of computer chips, and the potential use of nuclear energy as a power source, are still under consideration.

In addition to the massive Stargate project, Microsoft is considering a smaller project in Wisconsin, which could come online as early as 2026 with an investment of up to $10 billion.

Despite the ambitious nature of these plans, both OpenAI and Microsoft have kept details under wraps. OpenAI has declined to comment on the specifics, while a Microsoft spokesperson mentioned that the company is “always planning for the next generation of infrastructure innovations needed to continue pushing the frontier of AI capability.”

If realized, the supercomputer could enable OpenAI to develop artificial intelligence technologies that are currently only theoretical, possibly even leading to the creation of artificial general intelligence. As the tech industry watches closely, the potential for groundbreaking developments in AI looms large, promising a new era of technological innovation powered by the collaboration between OpenAI and Microsoft.

Keep following for more exciting AI News like this.

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Dave Andre


Digital marketing enthusiast by day, nature wanderer by dusk. Dave Andre blends two decades of AI and SaaS expertise into impactful strategies for SMEs. His weekends? Lost in books on tech trends and rejuvenating on scenic trails.

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