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"Microsoft (MSFT.O), opens new tab and OpenAI are planning a data-center project that could cost as much as $100 billion and will include an artificial intelligence supercomputer called "Stargate," according to a media report on Friday.
The companies did not immediately respond to Reuters' requests for comment.
The Information reported that Microsoft would likely be responsible for financing the project, which would be 100 times more costly than some of the biggest current data centers, citing people involved in private conversations about the proposal."
"The proposed efforts could cost in excess of $115 billion, more than three times what Microsoft spent last year on capital expenditures for servers, buildings and other equipment, the report stated."
It would be interesting to see how much the chips cost. Probably a lot of the 3X expense from last year.
"The proposed efforts could cost in excess of $115 billion, more than three times what Microsoft spent last year on capital expenditures for servers, buildings and other equipment, the report stated."
It would be interesting to see how much the chips cost. Probably a lot of the 3X expense from last year.
This $115 billion multi years spending is well within Microsoft's capabilities. According to YCharts, Microsoft's revenue (TTM) for the year ending December 31, 2023 is $227.58 billion with $21.87 billion of net profit.
Additionally, it can trigger an arms race between Amazon, Google, Facebook, Apple, and Microsoft. It's an exciting development.
I'll believe it when I see the Microsoft announcement. The article references "someone who spoke to Sam Altman", which does not give this leak an air of credibility. It might be contingent on development of commercial fusion electrical generation.
Business Insider is quoting The Information, and that article reads like it was copied almost verbatim from the Reuters article you linked. And they can't even get the story straight. Reuters says it is a $100B data center project, which includes an AI supercomputer called Stargate. By the time Business Insider mangles it up it's a $100B supercomputer. And now I see the Toms Hardware article, and it's quoting The Information too. It's lucky for these journalists that they have autonomic nervous systems, so they don't have to depend on their intellects to breathe.
This news went publicly today is interesting. Today (March 29, 2024) is the Easter Holiday and the stock market is closed. If this news is true, the timing is good because it will give the market three days to digest and reduce or prevent the potential of the insider trading.
""We are always planning for the next generation of infrastructure innovations needed to continue pushing the frontier of AI capability," a Microsoft spokesperson said in an emailed statement to Reuters. The spokesperson did not comment directly on the report about the planned launch of the Stargate supercomputer."
Microsoft and OpenAI are working on plans for a data center project that could cost as much as $100 billion and include an artificial intelligence supercomputer called "Stargate" set to launch in 2028, The Information reported on Friday. Rapid adoption of generative artificial intelligence...
Did the proposal explain where or how are they going to get the electric energy for such a monster energy sucker? They will need a nuclear power station because with solar and wind will not get what they need (besides, solar and wind are not reliable because of the weather).
Did the proposal explain where or how are they going to get the electric energy for such a monster energy sucker? They will need a nuclear power station because with solar and wind will not get what they need (besides, solar and wind are not reliable because of the weather).
It depends on where, scale, and technical designs. It should have several data enterers across America. Certain areas in US might have ways to reroute or reallocate power to achieve what they can accommodate.
It depends on where, scale, and technical designs. It should have several data enterers across America. Certain areas in US might have ways to reroute or reallocate power to achieve what they can accommodate.
Figure around $30 per W for average of GPUs and other machines plus infrastructure and Capex to provide the power. So, around 3 to 4GW indicated.
The most interesting way to get that might be a strategic location with good local solar and wind plus a serious investment in grid upgrades for feeders and, to make everyone happy, some DC interconnects. The Texas panhandle/New Mexico join would make sense for access to multiple major grids plus ample regional renewables.
Figure around $30 per W for average of GPUs and other machines plus infrastructure and Capex to provide the power. So, around 3 to 4GW indicated.
The most interesting way to get that might be a strategic location with good local solar and wind plus a serious investment in grid upgrades for feeders and, to make everyone happy, some DC interconnects. The Texas panhandle/New Mexico join would make sense for access to multiple major grids plus ample regional renewables.
If they really need 4GW, good luck with that. The largest hydroelectric facility in the US is the Grand Coulee Dam, which has an output of 6.8GW. The largest nuclear facility in the US, Palo Verde, is only 3.8GW. If construction would need new power plants or new transmission lines (likely), they would be at least a decade out, probably more. As for Texas and New Mexico, Texas, having its own separate grid (ERCOT), does not have a lot of excess capacity (current capacity 6.6GW for the entire state), and New Mexico is pretty wimpy, having no significant hydro or nuclear, and the state government makes gas turbines difficult to get approved.
Thinking about where I'd put such a huge power sink, it would be in the northeast states bordering Canada or actually in Canada.
Of course, until Microsoft actually makes an announcement this is all speculation of little use.
Figure around $30 per W for average of GPUs and other machines plus infrastructure and Capex to provide the power. So, around 3 to 4GW indicated.
The most interesting way to get that might be a strategic location with good local solar and wind plus a serious investment in grid upgrades for feeders and, to make everyone happy, some DC interconnects. The Texas panhandle/New Mexico join would make sense for access to multiple major grids plus ample regional renewables.
Just for your amusement, TP Morgan of TheNextPlatform takes this thread's rumor and makes up a complete story (with no factual basis) for what Microsoft is building, connects it to UltraEthernet, why Microsoft acquired Fungible, and extends the supercomputer vs data center confusion to include an entire Azure cloud region.
The first thing to note about the rumored “Stargate” system that Microsoft is planning to build to support the computational needs of its large language
