Openai announced the establishment of a new company on Tuesday, known as the Stargate Project. The company’s new venture will focus on building artificial intelligence (AI) infrastructure in the United States. The company announced it will spend $500 billion (about Rs 43 lakh) to build capacity. The development was carried out after several recent outages by AI companies and had to limit its video generation platform Sora to reduce the load on the server. Notably, Microsoft also issued a statement stating that the joint venture has not changed its existing deal with OpenAI.
Openai announces Stargate Project
Openai announced in a blog post that the Stargate project aims to strengthen AI companies and ensure U.S. leadership in AI. The plan is to invest immediately $100 billion (about Rs 860 crore) and the rest ($400 billion) over the next four years ($400 billion). The initial equity in the joint venture is SoftBank, OpenAI, Oracle and MGX. SoftBank and Openai will become key partners, formerly responsible for financial responsibilities and the latter handling operational responsibilities.
On the technical side, Openai works with Arm, Microsoft, Nvidia and Oracle. Nvidia and Openai will build and operate new AI infrastructure. The post highlights that infrastructure construction has been underway in Texas and the company is evaluating other potential locations.
It is worth noting that OpenAI has entered into a partnership with Microsoft, which will continue until 2030. Under the protocol, Microsoft’s Azure Cloud Service platform has exclusive rights to the OpenAI API. Microsoft stressed in a statement issued Wednesday that all existing terms of the deal will continue to exist.
Microsoft also added that Openai “recently made a new large Azure commitment that will continue to support all Openai products as well as training.” The tech giant said it has approved Chatgpt Maker’s ability to build additional capabilities, the Capacity will be mainly used for model research and training.
Last year, the information reported that Openai leadership was frustrated with Microsoft because the company felt that Azure’s move wasn’t enough to scale its servers to meet OpenAI’s computing needs.
