While OpenAI Races to Build AI Data Centers, Nadella Reminds Us That Microsoft Already Has Them

On Thursday, Microsoft CEO Satya Nadella shared a video showcasing the company’s first massive AI system—a so-called AI “factory”—which will power OpenAI workloads. Nadella stated that this is just the first of many such Nvidia AI factories that will be deployed across Microsoft Azure’s global data centres.

Each system comprises over 4,600 Nvidia GB300 rack computers, equipped with the highly sought-after Blackwell Ultra GPU chip and connected through Nvidia’s InfiniBand technology, a super-fast networking solution. Nvidia CEO Jensen Huang made a significant move in 2019 when his company acquired Mellanox for $6.9 billion, securing its position in the InfiniBand market.

Microsoft promises to deploy hundreds of thousands of Blackwell Ultra GPUs globally as it rolls out these AI systems. The scale of these systems is impressive, and the company shared numerous technical details for enthusiasts to explore. However, the timing of the announcement is notable as well.

Microsoft’s Data Centres vs. OpenAI’s Ambitious Plans

The announcement comes shortly after OpenAI secured two major data centre deals with Nvidia and AMD. By 2025, OpenAI expects to commit around $1 trillion to build its own data centres. CEO Sam Altman indicated this week that additional deals are forthcoming.

In response, Microsoft is keen to highlight that it already operates more than 300 data centres across 34 countries, emphasising that it is “uniquely positioned” to meet the demands of frontier AI today. These large-scale AI systems are designed to run next-generation models with hundreds of trillions of parameters.

Upcoming Insights at TechCrunch Disrupt

As Microsoft continues to ramp up its efforts to serve AI workloads, Microsoft CTO Kevin Scott will be speaking at TechCrunch Disrupt, taking place from October 27 to October 29 in San Francisco. We can expect more insights into how Microsoft plans to expand its AI infrastructure further and support the growing demands of the AI industry.