The cost of the project is largely due to the price of acquiring the necessary AI chips. Microsoft is expected to cover the cost of the project, which also requires a significant amount of power to operate, up to 5 gigawatts. Power shortages are slowing some projects, leading to the exploration of alternative power sources like nuclear energy. The AI race is in full swing, with the U.S. government providing funding to keep up with demand, and Microsoft and OpenAI are at the forefront of this race.
Key takeaways:
- Microsoft and OpenAI are planning to build a $115B artificial intelligence supercomputer campus, named Stargate, which could take up to two years to construct and is projected to be delivered by 2028.
- The Stargate project is the final phase in a series of supercomputers planned by Microsoft and OpenAI, with the entire project wrapping up by 2030. A large portion of the cost is expected to be spent on acquiring necessary AI chips.
- The Stargate supercomputer will require a significant amount of power, up to 5 gigawatts, leading to considerations of alternative power sources like nuclear energy due to power shortages and the U.S.'s aging grid.
- OpenAI CEO Sam Altman plans to build $7T worth of AI infrastructure via semiconductor and chip manufacturing, and Microsoft has been introducing AI tools into firms, such as its partnership with Cushman & Wakefield in January.