Microsoft Takes Over Key Stargate Site in Latest OpenAI Pullback
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Microsoft Takes Over Key Stargate Site in Latest OpenAI Pullback
"Microsoft has taken over the commitment to rent data center capacity at a site in Norway, originally intended for OpenAI's Stargate venture. The site will provide Microsoft with access to 30,000 Nvidia Vera Rubin chips and expand on the company's previous $6.2 billion commitment to the site."
"OpenAI announced it was pausing the Stargate project in the United Kingdom, citing high energy costs. Both the UK and Norwegian sites are operated by AI hyperscaler Nscale, which has also found another AI operator, Google, to rent the capacity in London."
"The buildout of AI data centers has worried some, especially those living near one. OpenAI and several other developers have promised that these centers will not raise electricity prices, but local campaigners are mounting growing opposition to their construction and operation."
"The reduction in buildout comes as OpenAI has refocused development on its key services, such as ChatGPT and enterprise GPT integrations. It recently shut down Sora, its AI video-generation app."
Microsoft has assumed the commitment to rent data center capacity in Norway, initially designated for OpenAI's Stargate project. This site will provide Microsoft with 30,000 Nvidia Vera Rubin chips, building on a previous $6.2 billion investment. OpenAI has paused its Stargate project in the UK due to high energy costs and is reducing its overall exposure, particularly outside the US. Local opposition to AI data centers is growing, prompting discussions about alternative construction locations. OpenAI is refocusing on its core services, having recently shut down its AI video-generation app, Sora.
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