HomeMARKETSGoogle Joins Microsoft and OpenAI in $100B AI Arms Race

Google Joins Microsoft and OpenAI in $100B AI Arms Race

Alphabet’s Google means business when it comes to the artificial intelligence arms race. According to Google DeepMind Chief Executive Officer Demis Hassabis, plans are underway to spend more than $100 billion in revolutionary technology development. The remarks come as the tech giant seeks to be included as Microsoft and OpenAI plan a $100 billion supercomputer dubbed Stargate.

$100B AI Investments

Even as the AI race heats up, Google insists it has superior computing power to rivals. Microsoft and OpenAI have been working on a data center project and are looking to take on Google computing power. Consequently, their $100 billion Stargate supercomputer will come with millions of specialized server chips that will power OpenAI’s artificial intelligence.

Microsoft is expected to provide a good chunk of the $100 billion needed to finance the development of the supercomputer, which will be 100 times more costly than most big data centers in use. With the investment, Microsoft seeks to address and play a key role in the rapid adoption of generative intelligence technology that has triggered strong demand for AI data centers capable of handling advanced tasks.

The development of a supercomputer comes on the heels of Microsoft confirming it is working on its custom AI chips that will be used to train large language models. The company plans to reduce its reliance on Nvidia and other chipmakers by developing custom-made chips that could find their way into the $100 billion supercomputer. The company also hopes to lower the cost of training large language models, given that the most preferred AI chips currently cost between $30,000 and $40,000.

The new chips the company is working on will also be used to power its Azure data centers even as it sets sights on the AI race. The Azure Maia AI Chip and Arm-powered Azure Cobalt CPU should arrive in the market before the end of the year to take advantage of the growing demand for AI chips. The chips are designed to run cloud AI workloads like large language model training and inference. Consequently, they will power some of Azure’s most significant AI workloads.

AI Regulations

Meanwhile, the UK has set out to draft regulations governing artificial intelligence. Reports indicate that policymakers at the Department of Science, Innovation, and Technology are in the early stages of drafting rules focusing on the most powerful language models. The legislation is designed to limit the potential harm caused by emerging technology.

The push for AI regulations starkly contrasts with Prime Minister Rishi Sunak’s recent reiteration that countries should not rush to regulate AI. According to the PM, imposing stiff regulations could cause the UK to lose ground against the US and the European Union. Nevertheless, the EU has already passed sweeping laws designed to govern the development and use of the revolutionary technology.

The new AI laws in the EU seek to address any worries around privacy and other risks that might come about as the technology rapidly evolves. For instance, legislation bans the use of AI to detect emotions in workplaces and schools. It also limits the use of technology in high-stakes situations, such as sorting job applications.


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