AI is the new space race—but who will win?

Microsoft, OpenAI, Meta—everyone’s trying to one-up each other on AI infrastructure.

But is this really about building the future, or just a glorified Silicon Valley measuring contest?

There was a time when billionaires competed over who could build the biggest rocket and escape to space.

Now, the new flex is who can build the biggest, most power-hungry AI data centres.

But, let’s be real. It’s just as much of a vanity project.

Microsoft, OpenAI, Meta, and Google are locked in an AI arms race, throwing obscene amounts of money at infrastructure to fuel their next-gen models.

OpenAI’s latest grand plan? Stargate —a massive data centre that’s projected to cost up to $100 billion. Yes, billion. With a B.

But here’s where things get interesting: Microsoft, OpenAI’s biggest sugar daddy, seems hesitant to foot the bill.

Why the obsession with billon-dollar data centres?

AI development isn’t just about smarter chatbots anymore. It’s about raw computing power.

The more data and energy you throw at a model, the more powerful it (theoretically) becomes. The problem? The infrastructure required is outrageously expensive and increasingly unsustainable.

So now, instead of competing on product innovation, tech giants are flexing on who can build the biggest, baddest data centre. And like the space race before it, this competition is as much about ego as it is about progress.

And of course, like everything going on at the moment, it's a political power grab.

It’s not just corporate one-upmanship. It’s geopolitical manoeuvring. AI isn’t just the next big thing in tech, it’s the next big thing in power.

Microsoft’s cold feet

Despite its deep ties to OpenAI, Microsoft isn’t jumping to invest in Stargate.

Why? Maybe because a $100 billion data centre sounds less like a solid business investment and more like a money pit with a side of regulatory headaches. Even for a company that prints cash, that’s a tough sell.

Meanwhile, OpenAI, led by the ever-ambitious Sam Altman, is looking for other investors to bankroll this vision.

Altman has already been courting SoftBank for funding. If that sounds familiar, it’s because it’s giving serious WeWork/Adam Neumann energy—big dreams, bigger spending, and an even bigger question mark on long-term viability.

The bigger picture

While these companies are busy competing on who can control the most AI infrastructure, the real question is: Who benefits from this AI future?

Right now, it’s looking more like a consolidation of power rather than democratisation. If the future of AI is decided by who has the deepest pockets, that’s not exactly an inspiring vision.

And let’s not forget the environmental impact.

AI already consumes ridiculous amounts of electricity. And with projects like Stargate on the horizon, the industry’s carbon footprint is about to absolutely fkn skyrocket.

But hey, at least they’re not building more yachts – the Orcas have us covered there.

What does this have to do with brands?

For marketers, this AI land grab is a reminder to focus less on the hype and more on practical applications.

The real winners won’t be the companies spending billions on infrastructure. They’ll be the ones actually using AI in smart, innovative ways that benefit real people.

So, while the billionaires play "Whose Data Centre Is Bigger?", the rest of us should focus on AI strategies that actually matter—customer experience, creative automation, and tools that make life easier, not just more expensive.

-Sophie, Writer