Microsoft and OpenAI are embarking on an ambitious venture, plotting the creation of a data center project potentially valued at $100 billion.
This initiative is set to introduce an artificial intelligence (AI) supercomputer, dubbed “Stargate,” projected to launch in 2028, according to a report by The Information.
The news has stirred considerable interest, although OpenAI has not yet responded to inquiries for comments.
The surge in generative AI technology use has triggered an exponential demand for AI data centers.
These facilities are anticipated to handle tasks far surpassing the capabilities of current data centers.
The Information highlighted that Microsoft is expected to finance this monumental project, which could be up to 100 times more expensive than the largest existing data centers, based on insights from insiders familiar with the discussions.
This U.S.-based supercomputer aims to be the pinnacle of a series of projects planned over the next six years.
The estimation of the $100 billion cost is credited to conversations with Sam Altman and an examination of Microsoft’s preliminary budget assessments, though the sources remain unnamed.
Microsoft and OpenAI have outlined a strategic plan divided into five phases, with “Stargate” marking the final stage.
A smaller, fourth-phase supercomputer is already in the works for OpenAI, slated for a 2026 debut.
Currently, they are in the third phase, focusing on acquiring the necessary AI chips, a critical and costly part of the project.
AI chips, such as Nvidia’s latest “Blackwell” B200, are priced between $30,000 and $40,000, reflecting the high expenses associated with AI developments.
Microsoft also introduced two custom computing chips last November, signaling its ongoing efforts in hardware innovation.
The project is designed to be compatible with chips from various suppliers, underscoring a versatile and inclusive approach to AI infrastructure development.
A Microsoft spokesperson, while refraining from commenting directly on the Stargate project, emphasized the company’s commitment to pioneering AI infrastructure advancements.
The projected expenses for this venture might surpass $115 billion, dwarfing Microsoft’s previous year’s capital spending on servers, buildings, and other equipment.
This ambitious endeavor underscores the growing importance and investment in AI technology infrastructure, positioning Microsoft and OpenAI at the forefront of this transformative field.