Microsoft and ChatGPT’s parent company OpenAI are planning a data center project that could cost up to $100 billion and include an artificial intelligence supercomputer called “Stargate” to launch in 2028, according to a report on Friday.
The rapid adoption of creative AI technology has led to an explosion in demand for AI data centers that can handle more complex tasks than traditional data centers.
Five phases of Supercomputing
Altman and Microsoft has divided supercomputers into five phases, of which Stargate is the fifth phase. According to the report, Microsoft is working on a smaller, four-phase supercomputer for OpenAI, which will be released around 2026.
Microsoft and OpenAI are halfway through the third phase of a five-phase plan, with a significant portion of the cost of the next two phases, which includes the necessary AI acquisition chips.
AI chips are often sold at high prices. Chip company Nvidia CEO Jensen Huang told CNBC earlier in March that the latest “Blackwell” B200 AI chip will cost between $30,000 and $40,000.
Microsoft also announced a pair of custom PC chips last November.
“We’re constantly developing the next-generation infrastructure innovations needed to push the boundaries of what AI can do,” Microsoft spokesman Frank Shaw said in a statement to the publication.
The proposed steps could cost more than $115. A billion, or more than three times what Microsoft spent last year on capital expenditures for servers, buildings and other equipment, the report said.
Information attributed the tentative cost of $100 billion to a person who spoke to OpenAI CEO Sam Altman about it and a person who has viewed some of Microsoft’s initial cost estimates. It did not identify those sources.
