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Microsoft and OpenAI’s $100B AI Data Center Project: Stargate Unveiled

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Microsoft and OpenAI's $100B AI Data Center Project Stargate Unveiled

(CTN News) – According to The Information, Microsoft (MSFT.O) and OpenAI are collaborating on a $100 billion data center project that will contain the “Stargate” artificial intelligence supercomputer, due to launch in 2028.

The corporations did not immediately respond to Reuters’ inquiries for comment.

The rapid use of generative artificial intelligence technology has resulted in skyrocketing demand for AI data centers capable of handling more complex jobs than traditional data centers.

Financing the Project: Microsoft’s Role

According to The Information, Microsoft would most likely finance the project, which is projected to cost 100 times more than some of the largest existing data centers, citing persons involved in secret discussions about the concept.

According to the source, the projected supercomputer in the United States would be the largest in a series the corporations plan to create over the following six years.

According to The Information, the estimated cost of $100 billion was based on conversations with Altman and viewing some of Microsoft’s original cost projections. It did not name the sources.

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Altman and Microsoft have divided the supercomputers into five phases, with Stargate being the fifth. According to the article, Microsoft is developing a smaller, fourth-phase supercomputer for OpenAI that will be launched around 2026.

According to the article, Microsoft and OpenAI are in the middle of the third phase of the five-phase plan, with procuring the necessary AI processors accounting for a substantial amount of the cost for the next two stages.

AI chips are frequently sold for exorbitant prices. In March, Nvidia (NVDA.O) CEO Jensen Huang revealed to CNBC that the “Blackwell” B200 AI processor would cost between $30,000 and $40,000.

Microsoft introduced two custom-designed processing chips in November of last year.

According to the source, the new initiative will include chips from various manufacturers.

“We are always planning for the next generation of infrastructure innovations needed to continue pushing the frontier of AI capability,” Frank Shaw, a Microsoft official, told the publication.

According to the article, the plan’s expenses might surpass $115 billion, more than double Microsoft’s capital investment last year on servers, buildings, and other equipment.

SEE ALSO: “OpenAI’s Figure 1”, An Innovative Humanoid Robot, Is Revealed

Arsi Mughal is a staff writer at CTN News, delivering insightful and engaging content on a wide range of topics. With a knack for clear and concise writing, he crafts articles that resonate with readers. Arsi's pieces are well-researched, informative, and presented in a straightforward manner, making complex subjects accessible to a broad audience. His writing style strikes the perfect balance between professionalism and casual approachability, ensuring an enjoyable reading experience.

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