DIGIVESTASI - Microsoft and OpenAI are reportedly planning a $100 billion joint data center project, or about $1.585 trillion (US$1 = Rs. 15,852), according to a report in The Information.

Monday (April 1, 2024), the project is targeted to culminate in 2028 with the launch of a supercomputer powered by artificial intelligence or AI called Stargate AI. 

This ambitious plan comes amid a growing need for AI data centers that can handle increasingly complex tasks. The rise of generative AI technology is a key driver of this demand.

People familiar with the discussions believe that Microsoft will bear most of the financial burden of the project. The project budget is estimated to be 100 times longer than the current data center operations.  The supercomputer will be located in the United States and will be the centerpiece of a six-year, multi-phase effort. 

The project will reportedly be divided into five phases, with Stargate being the final phase. Microsoft is currently developing a small supercomputer for OpenAI, which is scheduled for release in 2026. Procuring the AI chips required for the next phase of the project is expected to be costly. Nvidia CEO Jensen Huang said the chips could cost between $30,000 and $40,000. Microsoft demonstrated its commitment to enhancing AI capabilities by developing its own custom computer chips.

The new data center project is designed to utilize chips from various suppliers, the report said. Spending on the project is expected to exceed $115 billion, far exceeding Microsoft's infrastructure capital expenditure last year, The Information reported. 

Last month, OpenAI CEO Sam Altman also shared insights into the upcoming GPT-5 model at the World Government Summit in Dubai, saying that it will outperform its predecessor in every way. The next model is expected to represent a significant leap in AI capabilities, potentially approaching human intelligence. 

Early tests show that it can decipher ancient languages.  The GPT-5 incorporates features such as image creation through DALL-E and video creation through Sora, and is tentatively scheduled for release in 2024.

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