While OpenAI races to build AI data centers, Nadella reminds us that Microsoft already has them

TechCrunch
TechCrunch
2M ago
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Microsoft CEO Satya Nadella announced the deployment of massive AI systems in Azure data centers, emphasizing their capability to handle frontier AI workloads.
While OpenAI races to build AI data centers, Nadella reminds us that Microsoft already has them
A What happened
On October 9, 2025, Microsoft CEO Satya Nadella revealed the company's first massive AI system, referred to as an AI factory, during a tweet. This system, part of Microsoft Azure's global data centers, consists of over 4,600 Nvidia GB300 rack computers utilizing the Blackwell Ultra GPU chip. Microsoft plans to deploy hundreds of thousands of these GPUs worldwide. The timing of this announcement is significant, coinciding with OpenAI's recent agreements with Nvidia and AMD for data center expansions. Microsoft boasts over 300 data centers across 34 countries, asserting its readiness to support the demands of frontier AI, capable of running models with hundreds of trillions of parameters. Further details on Microsoft's AI initiatives are expected at the upcoming TechCrunch Disrupt event.
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Key insights

  • 1

    AI Factory Launch: Microsoft introduces its first AI factory to enhance Azure's capabilities.

  • 2

    Strategic Timing: Announcement follows OpenAI's significant data center deals, highlighting competitive positioning.

  • 3

    Global Infrastructure: Microsoft operates over 300 data centers, uniquely positioned for advanced AI workloads.

Takeaways

Microsoft's advancements in AI infrastructure underscore its commitment to leading in the AI sector.

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Technology & Innovation Artificial Intelligence Cybersecurity Cloud & Data Business & Markets Innovation