Microsoft and OpenAI to Forge $100 Billion AI Supercomputer “Stargate”

In a groundbreaking development reported by The Information, Microsoft, in collaboration with OpenAI, is charting the course for an ambitious data center project, including the creation of an AI supercomputer dubbed “Stargate.”

Slated for launch in 2028, this venture is poised to redefine the capabilities of generative artificial intelligence technology, catering to the burgeoning demand for advanced AI data centers.

Skyrocketing Costs for Unprecedented Technology

The proposed project, expected to be based in the U.S., comes with an eye-watering price tag of up to $100 billion, making it significantly more expensive than existing data center initiatives.

According to sources close to the development, Microsoft is likely to shoulder the financial responsibilities of this mammoth undertaking.

The Evolution of AI Supercomputing

The Stargate supercomputer represents the zenith of a five-phase collaboration between Microsoft and OpenAI, aimed at constructing the most potent series of supercomputers over the coming years.

A smaller supercomputer, part of the fourth phase, is anticipated to be operational by 2026, with the duo currently progressing through the third phase of their plan.

The acquisition of specialized AI chips, with prices ranging between $30,000 and $40,000 for Nvidia’s latest “Blackwell” B200 chip, constitutes a significant portion of the project’s expenses.

Innovations in Computing Technology

Microsoft had previously announced the development of custom computing chips in November last year, signaling its commitment to spearheading next-generation AI infrastructure. The Stargate project is expected to be versatile, designed to integrate chips from a variety of suppliers.

Future-Proofing AI Capability

“We are always planning for the next generation of infrastructure innovations needed to continue pushing the frontier of AI capability,” stated a Microsoft spokesperson.

While the company refrained from directly commenting on the Stargate supercomputer, the ambitious scale of the project suggests a monumental step forward in AI development.

With projected expenses potentially exceeding $115 billion, this initiative marks a significant increase in Microsoft’s capital spending on technology infrastructure.

Rabius Sani

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