Microsoft and OpenAI have unveiled ambitious plans for a groundbreaking data center project that could potentially reach a staggering $100 billion in costs. Central to this initiative is the development of an advanced artificial intelligence supercomputer named ”Stargate,” slated for launch in 2028. This move comes in response to the rapidly increasing demand for AI data centers, driven by the widespread adoption of generative artificial intelligence technology, which necessitates more sophisticated infrastructure than conventional data centers can provide.
According to sources familiar with private discussions on the project, Microsoft is expected to shoulder the financing for this endeavor, which is estimated to be a hundred times more expensive than some of the largest existing data centers. The proposed supercomputer, to be based in the United States, would mark the largest in a series of supercomputers that Microsoft and OpenAI aim to construct over the next six years.
The estimated $100 billion cost for the Stargate supercomputer was disclosed by individuals briefed on the matter, including one who spoke with Altman, while another has reviewed Microsoft’s initial cost estimates. The project is divided into five phases, with Stargate representing the final phase. Microsoft is concurrently developing a smaller fourth-phase supercomputer for OpenAI, expected to be operational around 2026.
Presently in the third phase of their plan, Microsoft and OpenAI are facing substantial expenses for the upcoming phases, particularly in acquiring the requisite AI chips, which are known to command high prices in the market. For instance, Nvidia’s CEO Jensen Huang revealed that the latest ”Blackwell” B200 artificial intelligence chip would be priced between $30,000 and $40,000. In November of last year, Microsoft had also announced the creation of a pair of custom-designed computing chips.
In response to inquiries about the project, a Microsoft spokesperson stated,” We are always planning for the next generation of infrastructure innovations needed to continue pushing the frontier of AI capability.” However, the spokesperson refrained from providing specific details regarding the planned launch of the Stargate supercomputer. The anticipated expenses for this ambitious plan could potentially exceed $115 billion, more than triple Microsoft’s capital spending on servers, buildings, and other equipment from last year.
Microsoft is a multinational technology company known for its software products, including the Windows operating system and Office productivity suite. Founded by Bill Gates and Paul Allen in 1975, Microsoft has since expanded into various areas, including cloud computing with Azure, gaming with Xbox, and hardware with Surface devices. Microsoft is also actively involved in artificial intelligence research and development, aiming to empower people and organizations with AI-driven solutions.
On the other hand, OpenAI is an artificial intelligence research laboratory consisting of the for-profit OpenAI LP and the non-profit OpenAI Inc. Founded in December 2015, OpenAI aims to ensure that artificial general intelligence (AGI) benefits all of humanity. OpenAI conducts research in various AI-related fields, including reinforcement learning, robotics, and natural language processing. OpenAI has collaborated with several companies and organizations to advance AI research and promote ethical AI development.
