Microsoft and OpenAI partner to build a $100 Billion AI supercomputer “Stargate”

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In a bold stride towards computational supremacy, Microsoft, in partnership with OpenAI, is reported to be laying the groundwork for a colossal data center project nicknamed “Stargate.” The initiative, set for a launch date in 2028, signifies a staggering $100 billion investment aimed at reducing reliance on Nvidia’s technology, a move echoing the sentiments of many AI-focused tech behemoths. But there may be more than simply reducing dependence on Nvidia.

Strategic Move Towards Computational Independence: The project, reportedly consisting of five ambitious phases, culminates in the creation of Stargate – a data centre that doubles as an AI supercomputer. This mammoth of technology is not just another piece of hardware; it represents a strategic pivot towards in-house computational resources.

Potential Step Towards AGI: With computing power often labeled as the bottleneck for Artificial General Intelligence (AGI), Stargate’s massive server count – potentially reaching a million – could significantly accelerate efforts towards AGI. While Microsoft’s original agreement with OpenAI doesn’t encompass AGI, industry speculation is rife about a potential new agreement that might bring Microsoft into the development and potentially control of AGI.

Economic and Technological Implications: Tech experts suggest that the pursuit of such an advanced AI system, if successful, could redefine the global AI landscape, reducing dependency on established hardware suppliers like Nvidia. Stargate’s prospective capabilities might also shift the economy, validating Sam Altman’s recent quote that “Compute will be the new currency.”

The Tech Community’s Response: While Microsoft and OpenAI have not publicly disclosed details, the buzz has not escaped the attention of the tech community. The sheer scale and ambition of Stargate suggest a future where data centres themselves become supercomputers, powered by advancements in server processors and AI-dedicated hardware, shifting away from traditional GPU and interconnect dependencies.

Looking Forward: As Microsoft steers this venture forward with OpenAI, the implications of Stargate could lead to transcending the current state of AI, creating ripples across technological, economic, and possibly even societal landscapes. This is not merely about building a supercomputer; it is about shaping the trajectory of AI advancement and Microsoft’s commitment to pioneering a future that may well see the dawn of AGI.



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