It's “billion” with a “b.”
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It's no secret that OpenAI and its lead investor Microsoft are committed to making AI the next big thing in computing.
But a new scoop reveals exactly how deep the effort goes. Citing an anonymous source familiar with the project, information the dynamic duo built a secret supercomputer designed to train a powerful new AI. It is reported that the company is working on the development of
OpenAI did not respond quartzMicrosoft did not respond to a request for comment on the facility, codenamed Stargate, and reportedly scheduled to open in 2028, but did not respond to the report in a statement.
“Microsoft has demonstrated the ability to build pioneering AI infrastructure used to train and deploy world-leading AI models,” a Microsoft spokesperson told the site. “We are constantly planning the next-generation infrastructure innovations needed to continue pushing the frontiers of AI capabilities.”
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Needless to say, it's a huge investment. As such, the book shines an even brighter spotlight on a pressing question for the still-infant AI industry: what will the overall break-even be?
So far, most companies in this space, including Microsoft and OpenAI, are offering their essential AI services for free, and in some cases offering more advanced upsell versions like OpenAI's ChatGPT Plus. Masu.
Granted, many people spend a similar amount per month on services like streaming video, so it's certainly possible that there will be a few winners with that subscription model. But it's hard to imagine freemium keeping a particularly broad industry afloat, and even OpenAI is already concerned about keeping costs down, as evidenced by its desperate fight to avoid paying for training data. It seems like it is.
And $100 billion in new funding won't alleviate that pressure, never mind the staggering power and maintenance costs of such facilities.
More information about OpenAI: The person controlling OpenAI's $175 million in funds appears to be a fake